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DELAWARE RIVER PORT AUTHORITY
&PORT AUTHORITY TRANSIT CORP.
BOARD MEETING
Wednesday, February 17, 20169:00 a.m.
Board RoomOne Port Center
Camden, NJ
John T. Hanson, Chief Executive Officer
DRPA BOARD
DELAWARE RIVER PORT AUTHORITYBOARD MEETING
Wednesday, February 17, 2016 at 9:00 a.m.One Port Center, 11th Floor, Board Room
ORDER OF BUSINESS
1. Roll Call
2. Report of the CEO –February 2016
3. Report of the CFO
4. Approval of January 20, 2016 Board Meeting Minutes
5. Monthly List of Previously Approved Payments – Covering Month of January 2016
6. Monthly List of Previously Approved Purchase Orders and Contracts of January 2016
7. Approval of 2015 Third Quarter Financials
8. Approval of Operations & Maintenance Committee Meeting Minutes of February 2,2016
9. Adopt Resolutions Approved by Operations & Maintenance Committee of February 2,2016
DRPA-16-017 Professional Services for 2016 BiennialInspection of the Betsy Ross Bridge
DRPA-16-018 Professional Services for 2016 Biennial Inspectionof the Benjamin Franklin Bridge
DRPA-16-019 Professional Services for 2016 BiennialInspection of the Walt Whitman Bridge
DRPA-16-020 Professional Services for 2016 BiennialInspection of the Commodore Barry Bridge
DRPA-16-021 Professional Services for 2016 BiennialInspection of PATCO
DRPA-16-022 Design Services for Benjamin Franklin BridgeMain Cable Investigation and Dehumidification
DRPA-16-023 Contract No. BF-45-2016, Benjamin FranklinBridge 5th Street Tunnel Priority Wall Repairs
DRPA-16-024 PARTSWG Transit Contract IntelligenceAnalysts, Phase IV
DRPA-16-025 Procurement of one (1) 2016 Johnson VT StreetSweeper
DRPA-16-026 Procurement of three (3) 2016 Kubota Tractors
DRPA-16-027 Procurement of three (3) 2016 Ford Escapes and(1) 2016 Ford Transit Van
10. Approval of Finance Committee Meeting Minutes of January 13, 2016 andFebruary 10, 2016
11. Adopt Resolutions Approved by Finance Committee of February 10, 2016
DRPA-16-028 Selection of Qualified Counsel to ProvideLegal Services to DRPA and PATCO
12. Approval of Audit Committee Meeting Minutes of January 13, 2016 and February10, 2016
13. Unfinished Business
14. New Business
DRPA-16-029 Consideration of Pending DRPA Contracts(Between $25,000 and $100,000)
DRPA-16-030 Strategic Planning Facilitation andAdvisory Services
15. Citizens Advisory Committee Report
16. Public Comment
17. Executive Session
18. Adjournment
CEO REPORT
FEBRUARY, 2016
Delaware River Port Authority
of Pennsylvania and New Jersey
One Port Center
2 Riverside Drive
Camden, New Jersey 08101-1949
February 17, 2016
To the Commissioners:
The following is a summary of recent DRPA activities. The appropriate reports are attached:
A WWB customer wrote, I want to say thank you for the incredible experience I had with the
DRPA this morning. My car died while on the Walt Whitman Bridge and it was absolutely
terrifying. Needless to say, I did not stay calm and was incredibly scared. After calling 911,
they transferred me to the DRPA, who were very helpful and closed the bridge lane while I
was still on the phone with them. Two DRPA officers arrived very shortly after and they
were amazing! Officer Peter Perry came to my window and was so kind in calming me
down and explaining carefully exactly what he would be doing to get my car over the bridge.
His assurance calmed me down and I was able to steer my car over the bridge while his car
pushed mine along.
When we got safely across the bridge to the toll plaza area to stop he was again so kind and
helpful in making sure I was ok and letting me know exactly what to tell AAA in order to
make sure they arrived as quickly as possible.
I cannot thank the DRPA and Officer Perry (I did not get the other officer's name) enough.
They turned an incredibly scary experience into a safe and calm situation.
After the snow storm, the 4th largest in the region’s history, PATCO received several
compliments from our customers, including:
Report of the Chief Executive Officer
Stewardship
/Stewardship
o I must say, in my 33 years of taking PATCO to/from work, this is the BEST job I’ve
ever seen relating to the clearing of the parking lots and sidewalks of snow!
o This is why I boast that PATCO’s the best. Thanks for the hard work!
o Thanks @RidePATCO for staying open during the storm so I could get home from
work safe!
o I left a little early today considering we got 17 inches of snow over the weekend. I
got to work just fine, thanks to @RidePATCO!! Thanks!!
o Great job by PATCO getting me to work hassle free. Thank you to their dedicated
employees. You are all awesome!
o Great job with parking lots at Lindenwold.
o Wow! Great job by the @RidePATCO crews at Woodcrest. Parking lot plowed and
salted. Same for walkways. Excellent!
o @RidePATCO Thank you for running through blizzards. I get to sleep in my own
bed tonight.
o Two thumbs up to your crews. Collingswood parking lot looked great.
o Not sure who cleared off EVERYONE’s car at the Haddonfield PATCO station, but it
was a welcome surprise returning to my car today. Thanks!
o @RidePATCO amazing job at Ashland!!
o @PATCOWatchers must be said parking lot is in great shape. Crews did good!
CEO Emergency Powers
Under my CEO Emergency Powers, I approved two contracts for communications in the amount of
$24,750 each to 1) Thomas Boyd Communications, and 2) Perry Media Group (PMG) due to the
temporary departure of our Director of Corporate Communications.
Annual DBE Program Policy Statement
As a condition of continued receipt of federal financial assistance from the US Department of
Transportation, Federal Transit Administration (FTA), we must have a fully-compliant
Disadvantaged Business Enterprise (DBE) Program. Each year, we are required to circulate a signed
and dated policy statement throughout the organization and to the DBE and non-DBE business
communities that perform work on the Authority’s DOT-assisted contracts. The Authority’s annual
DBE Program policy statement (attached) reaffirms our continued commitment to the success of our
DBE program.
Federal regulations require that we designate an employee, who has direct, independent access to the
Chief Executive Officer, to serve as Disadvantaged Business Enterprise Liaison Officer (DBELO).
Our DBELO is Chief Administrative Officer, Toni P. Brown. The regulations also require that we
have adequate staff to administer the DBE Program. Ms. Brown is supported in her efforts by two
full-time employees in the Office of Business Development & Equal Opportunity, and, as necessary,
by two additional full-time staff in the Office of the Chief Administrative Officer.
I am pleased to share our annual DBE policy statement with you. It will be posted on our website,
and disseminated publicly in other ways. Questions concerning the Authority’s DBE Program can be
directed to CAO Brown.
PATCO Track Rehab Project
American Council of Engineering Companies - NJ (ACEC) has awarded an Honor Award to the Ben
Franklin Bridge PATCO Track Rehab project. This competition recognizes and celebrates
engineering achievements that demonstrate the highest degree of skill and ingenuity. The project will
be recognized at the 45th Engineering Excellence Awards Banquet on March 16, 2016 in Jamesburg,
NJ. As a recipient of the Honor Award, the project is eligible for consideration at the national level in
the ACEC Grand Conceptor Award, to be unveiled in April 2016.
DRPA
Enterprise Resource Planning (ERP) Update
Since launching SAP on January 4, 2016, the system is functioning, and our employees and
consultants continue to work through glitches and issues that arose.
Quintel and Grant Thornton continue to provide in-person, hands-on assistance to employees to
help them navigate questions and issues when performing their day-to-day job duties in SAP.
We continue to deliver training to our employees. This training has been led by a mix of Quintel,
Grant Thornton and DRPA employees.
For a list of Bridge and Finance actions, see Attachment 1For a list of Personnel Actions, see Attachment 2
For a list of Contracts and Purchases, see Attachment 3For a list of Risk Management & Safety Actions, see Attachment 4
For the Affirmative Action Report, see Attachment 5For a list of Legal Statistics, see Attachment 6
Delaware River Port Authority Policy Statement, see Attachment 7____________________________________________________________
For PATCO Ridership and Financial Information,
See the General Manager’s Report in the PATCO section
Attached are reports from the appropriate departments.____________________________________________________________
Respectfully Submitted,
John T. Hanson
Chief Executive Officer
PATCO
REPORT OF THE CHIEF EXECUTIVE OFFICER
ATTACHMENT 1
BRIDGE AND FINANCE
Activity for the Month of January 2016
90Adults: Juv.: 3CDS Arrests: 25DWI Arrests:6,619Calls for Service:
TotalCBB BFB PATCO BRB WWB
CBB: BFB: PATCO: BRB: WWB: Arrests NJ: Arrests PA:1 40 29 1 18 71 14
Total Arrests: 90
Incident Type
BFB: PATCO: BRB: WWB:5 7 2 0 5CBB:Reportable Accidents:
BFB: PATCO: BRB: WWB:CBB:Non Reportable Accidents:
BFB: PATCO: BRB: WWB:CBB:Accident with Injuries:
2 5 3 1 8
4 4 0 0 0
Arrests:
33 MV Stop 1,287158 396 52 174 503
26 Assist-Routine PD Backup 1,20869 451 226 94 368
302 Security Check 49750 67 105 148 126
25X Insufficient Funds 4062 1 2 400
47 Disabled MV 34540 65 6 62 169
35X Motorist Aid/Service To Patron 31834 47 120 33 84
25 Escort 30138 12 38 212
88X Parking Viol./Compl. 2709 261
86 Removal 2244 220
50X Leaving Jurisdiction 21919 127 19 25 29
90 Other PD Assist 18712 36 116 7 16
46 Construction/Trades Backup 16224 62 2 22 52
302 Security Check/Detail 1189 29 28 31 21
33C CV Stop 11517 22 5 71
1 Headquarters Assignment 795 31 3 12 28
91 Ped Investigation/Stop 741 8 64 1
82 Notification 725 17 32 4 13
84 Check On Subject Well-being 659 48 1 7
15 MV Accident 568 18 10 3 17
79 Roadway Hazard/Station Hazard 5411 13 2 8 20
78X Toll Evasion/TOS 4718 17 1 3 8
25EZ Easy Pass Redirect 451 44
25T Fare Problem 3636
80 Break 309 9 2 3 7
8 911 Hang Up/Mis-Dial 2911 16 2
999 Generated In Error 272 5 2 1 4
56 Med Emerg/Injury Report 262 24
83X Car Wash 228 7 7
Activity for the Month of January 2016
90Adults: Juv.: 3CDS Arrests: 25DWI Arrests:6,619Calls for Service:
TotalCBB BFB PATCO BRB WWB
CBB: BFB: PATCO: BRB: WWB: Arrests NJ: Arrests PA:1 40 29 1 18 71 14
Total Arrests: 90
Incident Type
BFB: PATCO: BRB: WWB:5 7 2 0 5CBB:Reportable Accidents:
BFB: PATCO: BRB: WWB:CBB:Non Reportable Accidents:
BFB: PATCO: BRB: WWB:CBB:Accident with Injuries:
2 5 3 1 8
4 4 0 0 0
Arrests:
59 MV Look Up 2217 3 2
38 Transport Courtesy 209 5 6
29 Alarm Activation 191 3 14 1
12 Suspicious Person/Activity/Event 191 18
58 Drivers License Check 1614 2
49X Inspection Report 1313
71 Fight/Disturbance 1212
101 BOLO 121 3 7 1
78 Toll Dispute 113 1 7
310 Bridge Damage/PATCO Damage 101 5 2 1 1
60 Stolen Check/Wanted 91 6 1
56 Medical Emerg/Injury Report 98 1
341F Property Found 98 1
309 Special Detail 92 3 1 3
309T Training Assignment Detail 77
81 General Complaint 65 1
49 Investigate Location Conditions 61 4 1
25R Revenue Escort 66
16 Hit & Run 55
11 Fire 54 1
101S BOLO Suicidal 53 1 1
98 Panhandling/Soliciting 44
83 Counterfeit 41 3
79X Debris Strike 41 3
67 EDP (Emotionally Disturbed Person) 43 1
341L Property Lost 41 3
34 Suspicious Vehicle 41 3
302K K9 Sweep 43 1
Activity for the Month of January 2016
90Adults: Juv.: 3CDS Arrests: 25DWI Arrests:6,619Calls for Service:
TotalCBB BFB PATCO BRB WWB
CBB: BFB: PATCO: BRB: WWB: Arrests NJ: Arrests PA:1 40 29 1 18 71 14
Total Arrests: 90
Incident Type
BFB: PATCO: BRB: WWB:5 7 2 0 5CBB:Reportable Accidents:
BFB: PATCO: BRB: WWB:CBB:Non Reportable Accidents:
BFB: PATCO: BRB: WWB:CBB:Accident with Injuries:
2 5 3 1 8
4 4 0 0 0
Arrests:
74 Suicide Attempt 32
52 Erratic Driver/Unfit Motorist 31 2
5 Meet 33
220 Criminal History Check 33
TRN Train Problem Equipment/Mechanical 22
96 Slow Traffic 21 1
88 Evacuation 22
77 Domestic 21 1
71X Harassment/Threats 21 1
62 Sex Offense 22
17X Open/Secured Property 22
97 Traffic Pattern Adjust 11
92 Lost Load 11
75 Suicide Found 11
70 Animal Complaint 11
69 Juvenile Complaint 11
65 Vandalism/Criminal Mischief 11
64 Larceny/Theft 11
53 Abandoned Vehicle 11
48 Minor Incident 11
341F Found Property 11
313 Complaint against Police 11
312 Complaint against DRPA 11
29E Elevator Alarm 11
212 Employee Injury 11
14 Intoxicated Subject 11
0
ATTACHMENT 1
FINANCE
REVENUE AUDIT
Reported traffic and revenue for all four DRPA bridges for the month of November 2015:
2014 2015
Cash Revenue $7,467,882.89 $7,780,923.79
ETC Revenue $13,103,241.85 $17,054,916.49
Total Revenue $20,571,124.74 $24,835,840.28
Non ETC Traffic 1,375,372 1,441,376
ETC Traffic 2,392,215 2,555,237
Total Traffic 3,767,587 3,996,613
DELAWARE RIVER PORT AUTHORITY Attachment 1
TRAFFIC & BRIDGE TOLL FIGURES
FOR THE PERIODS INDICATED
MONTH OF NOVEMBER TRAFFIC BRIDGE TOLLS
-----2015----- -----2014-----
INC/(DEC) INC/(DEC)
TRAFFIC TOLLS TRAFFIC TOLLS % AMOUNT % AMOUNT
BEN FRANKLIN 1,408,282 $7,796,359.18 1,366,990 $7,545,055.81 3.02 41,292 3.33 $251,303.37
WALT WHITMAN 1,579,612 9,832,802.68 1,480,643 9,234,138.47 6.68 98,969 6.48 598,664.21
COMMODORE BARRY 545,532 4,184,531.99 508,678 3,854,288.27 7.25 36,854 8.57 330,243.72
BETSY ROSS 463,187 3,022,504.43 411,276 2,748,094.94 12.62 51,911 9.99 274,409.49
3,996,613 $24,836,198.28 3,767,587 $23,381,577.49 6.08 229,026 6.22 $1,454,620.79
`
YEAR TO DATE TRAFFIC BRIDGE TOLLS
1/1/15 TO 11/30/15 1/1/14 TO 11/30/14
INC/(DEC) INC/(DEC)
TRAFFIC TOLLS TRAFFIC TOLLS % AMOUNT % AMOUNT
BEN FRANKLIN 16,126,505 $89,664,784.39 16,205,836 $89,967,463.18 -0.49 (79,331) -0.34 ($302,678.79)
WALT WHITMAN 18,008,415 112,470,100.26 17,148,612 106,719,272.15 5.01 859,803 5.39 5,750,828.11
COMMODORE BARRY 6,268,800 47,845,153.23 6,073,154 45,657,873.42 3.22 195,646 4.79 2,187,279.81
BETSY ROSS 4,647,417 31,475,339.98 4,494,817 30,529,913.20 3.40 152,600 3.10 945,426.78
TOTALS 45,051,137 $281,455,377.86 43,922,419 $272,874,521.95 2.57 1,128,718 3.14 $8,580,855.91
Note: New Toll Schedule Went Into Effect July 1st, 2011.
Distribution: John Hanson
Jim White
REPORT OF THE CHIEF EXECUTIVE OFFICER
ATTACHMENT 2
PERSONNEL ACTIONS
DELAWARE RIVER PORT AUTHORITYACTIONS OF THE CHIEF EXECUTIVE OFFICERCOMMISSION MEETING FEBRUARY 17, 2016
ARTICLE XII-AATTACHMENT 2
PERSONNEL
*************************************************************************************************************************TEMPORARY APPOINTMENTS
Derek L. Frith Temporary No Benefits Eff: 01/01/2016 to 04/01/2016Executive DivisionCorporate Communications &Community Relations (OPC)
APPOINTMENTS
George B. Cousin C&M Mechanic Eff: 01/25/2016Operations DivisionHighway (BFB)
Rick D. Romolini C&M Mechanic Eff: 01/25/2016Operations DivisionHighway (WWB)
Gregory S. Seiverd C&M Mechanic Eff: 01/25/2016Operations DivisionHighway (BRB)
TEMPORARY ASSIGNMENT TO HIGHER CLASSIFICATION
Alfred J. Caruso From: Revenue Auditor To: Acting Supervisor, RevenueFinance Division AuditRevenue Audit (OPC) Finance Division
Revenue Audit (OPC)Eff: 01/01/2016 to 06/30/2016
Karen A. Fanning From: Administrative Coordinator To: Acting InsuranceAdministration Division AdministratorBenefits Administration (OPC) Administration Division
Benefits Administration (OPC)Eff: 01/01/2016 to 03/25/2016
Selina C. Thompkins From: Administrative Secretary To: Acting AdministrativeAdministration Division CoordinatorBenefits Administration (OPC) Administration Division
Benefits Administration (OPC)Eff: 01/01/2016 to 03/25/2016
Actions of the Chief Executive OfficerCommission Meeting of 02/17/2016Page 2 of 5
TEMPORARY ASSIGNMENT TO HIGHER CLASSIFICATION - continued
Trenace Y. Starks From: Building Services Clerk To: Acting Supervisor, MailroomAdministration Division Administration DivisionMailroom (OPC) Mailroom (OPC)
Eff: 01/02/2016 to 02/19/2016
Patrick W. Dolly From: Corporal of Police To: Acting Sergeant of PolicePublic Safety Division Public Safety DivisionPublic Safety (BFB) Public Safety (BRB)
Eff: 01/09/2016 to 02/12/2016
Richard T. Zappile From: Police Officer To: Acting Corporal of PolicePublic Safety Division Public Safety DivisionPublic Safety (BFB) Public Safety (BFB)
Eff: 01/09/2016 to 02/12/2016
Craig C. Teschko From: Highway Foreman To: Acting MaintenanceOperations Division ForemanConstruction & Maintenance (WWB) Operations Division
Construction & Maintenance(WWB)Eff: 01/16/2016 to 01/29/2016
Patrick M. Berkery From: C&M Mechanic To: Acting Highway ForemanOperations Division Operations DivisionHighway (BFB) Highway (BFB)
Eff: 01/23/2016 to 03/18/2016
Robert J. Finnegan, Sr. From: Lieutenant of Police To: Acting Director, HomelandPublic Safety Division Security & EmergencyPublic Safety - Administration Management(BFB) Public Safety Division
Public Safety - Administration(BFB)Eff: 01/23/2016 to 07/22/2016
Elizabeth M. McGee From: Administrative Coordinator To: Acting Records ManagerGeneral Counsel Division General Counsel DivisionCorporate Secretary’s Office (OPC) Corporate Secretary’s Office
(OPC)Eff: 01/23/2016 to 04/22/2016
Actions of the Chief Executive OfficerCommission Meeting of 02/17/2016Page 3 of 5
TEMPORARY ASSIGNMENT TO HIGHER CLASSIFICATION - continued
Amy L. Ash From: Contract Administrator To: Acting Manager, ContractFinance Division AdministrationContract Administration (OPC) Finance Division
Contract Administration (OPC)Eff: 01/30/2016 to 04/29/2016
Mortique N. Hill From: Toll Collector To: Acting Plaza SupervisorOperations Division Operations DivisionBridge/Toll (BFB) Bridge/Toll (CBB)
Eff: 01/30/2015 to 03/25/2016
PROMOTIONS
Jhmal K. Haseen From: C&M Mechanic To: Highway ForemanOperations Division Operations DivisionHighway (BFB) Highway (BFB)
Eff: 01/16/2016
Brian S. Kirch From: Fleet Service Mechanic To: Auto TechnicianOperations Division Operations DivisionFleet Operations (WWB) Fleet Operations (WWB)
Eff: 01/16/2016
John J. Rachuba From: C&M Mechanic To: Highway ForemanOperations Division Operations DivisionHighway (BRB) Highway (BRB)
Eff: 01/16/2016
Gary W. Thorpe From: Fleet Service Mechanic To: Auto TechnicianOperations Division Operations DivisionFleet Operations (BFB) Fleet Operations (BFB)
Eff: 01/16/2016
Kyle J. Uhland From: Fleet Service Mechanic To: Auto TechnicianOperations Division Operations DivisionFleet Operations (WWB) Fleet Operations (WWB)
Eff: 01/16/2016
INTERAGENCY PROMOTION to DRPA - from PATCO - None
INTERAGENCY PROMOTION to PATCO - from DRPA - None
Actions of the Chief Executive OfficerCommission Meeting of 02/17/2016Page 4 of 5
INTERAGENCY TRANSFERS to PATCO - from DRPA - None
INTERAGENCY TRANSFERS to DRPA - from PATCO - None
TRANSFERS - DEPARTMENTAL - None
RETIREMENTS
Howard M. Korsen Manager, Contract Administration Eff: 01/05/2016Finance DivisionContract Administration (OPC)
Albert J. DiGiamberardino Police Officer Eff: 01/08/2016Public Safety DivisionPublic Safety (Transit Unit)
Joyce A. Grace Plaza Supervisor Eff: 01/08/2016Operations DivisionBridge/Toll (BFB)
Betty C. Gregory Toll Collector Eff: 01/08/2016Operations DivisionBridge/Toll (BFB)
Frederick C. Sutherland Plaza Supervisor Eff: 01/08/2016Operations DivisionBridge/Toll (BRB)
Anthony J. Caporelli Maintenance Foreman Eff: 01/15/2016Operations DivisionMaintenance (CBB)
Harold A. Smith Police Officer Eff: 01/15/2016Public Safety DivisionPublic Safety (Transit Unit)
Michael H. Matey Toll Collector Eff: 01/21/2016Operations DivisionBridge/Toll (BFB)
Actions of the Chief Executive OfficerCommission Meeting of 02/17/2016Page 5 of 5
RESIGNATIONS
James A. Ferrigno C&M Mechanic Eff: 01/08/2016Operations DivisionHighway (BRB)
Joseph J. Farina Police Officer Eff: 01/29/2016Public Safety DivisionPublic Safety (BFB)
DECEASED
James J. Fratantoro Toll Collector Eff: 01/20/2016Operations DivisionBridge/Toll (WWB)
REPORT OF THE CHIEF EXECUTIVE OFFICER
ATTACHMENT 3
CONTRACTS AND PURCHASES
ATTACHMENT 3
MONTHLY REPORTGENERAL PROCUREMENT ACTIVITY
During the month of January there were 60 Purchase Orders awarded totaling$147,119.53
Approximately 26.80% or $39,434.23 of the monthly dollar total was made availableto MBE and WBE’s, representing 48.33% or 29 of the monthly total number ofPurchase Orders.
Of the total monthly procurement available to MBE’s and WBE’s, approximately59.95% or $23,641.93 was awarded to MBE’s and approximately 6.24% or $2,462.30was awarded to WBE’s.
Of the total number of Purchase Orders available to MBE’s and WBE’s,approximately 34.48% or 10 Purchase Orders were awarded to MBE’s andapproximately 3.45% or 1 Purchase Order was awarded to WBE’s.
Page 1
February 17, 2016 1
ACTIONS OF THE CHIEF EXECUTIVE OFFICERARTICLE XII-C
ATTACHMENT 3CONTRACTS AND PURCHASES
Re: Article XII-C, Section 1 (a)
Purchase Order 4500000433, Dell Marketing L.P. Round Rock, TX. Purchase Contract forEquipment and Tools. Contract Value: $10,000.00. (NJ State Contract).
Purchase Order 4500000436, EPlus Technology, Inc. Newtown, PA. Purchase Contract forEquipment and Tools. Contract Value: $10,000.00. (NJ State Contract).
Purchase Order 4500000503, Control Group Companies, LLC. Cranford, NJ. PurchaseContract for Clear Deposit Bags. Contract Value: $15,057.08. (Low Bid of 1, 3 VendorsSolicited).
Purchase Order 4500000514, Tri-M Group LLC. Kennett Square, PA. Purchase Contractfor BRB HVAC Building Automation. Contract Value: $16,280.00. (Sole Source)
Purchase Order 4500000515, Tri-M Group LLC. Kennett Square, PA. Purchase Contractfor BRB Traffic Management. Contract Value: $15,672.00. (Sole Source)
Re: Article XII-C, Section 1 (b)
None
Re: Article XII-C, Section 8 (Emergency)
None
Re: Article XII-C, Section 5
Authorized payments for Contracts and Engineers for the Bridges and PATCO SystemsAs follows: (see accompanying Schedule 1)
Contracts and Engineers: $3,438,537.96
2015 CAPITAL BUDGET
Contract Retained Prior Invoice
Resolution # Contract/Engineer Amount Percent Amount Amount Payments No. Amount
Career Concepts, Incorporated
(DRPA-15-046) Organizational Structure and Resource Analysis 428,700.00 60.5% 259,355.00 0.00 236,705.00 17291 22,650.00
Alstom
(DRPA-10-154) PATCO Transit Car Overhaul 194,197,337.00 42.8% 83,024,753.28 4,151,237.68 75,503,501.24 36 & 37 3,370,014.36
Interstate Mobile Care
(DRPA-14-103) DOT CDL & FTA Physicals 540,000.00 23.3% 126,010.00 0.00 124,602.00 VARIOUS 1,408.00
LAZ Parking
(DRPA-13-095) Temporary Toll Collectors 2,832,714.56 65.6% 1,859,131.83 0.00 1,824,273.92 VARIOUS 34,857.91
Canon Financial Services, Inc.
(DRPA-11-027) Canon Copier Equipment - Lease Payment 382,260.00 76.7% 293,066.00 0.00 286,695.00 1560287 6,371.00
Worknet
(DRPA-14-103) Medical Testing Services 540,000.00 4.8% 25,779.75 0.00 25,524.75 02458335-00 255.00
The Eric Ryan Corporation
(DRPA-13-088) Utility Bill Audit Services - DRPA Portion 50,000.00 59.8% 29,887.51 0.00 26,905.82 82112 2,981.69
Total Contract and Engineer Payments 3,438,537.96$
ARTICLE XII-C, SECTION 5
SUMMARY OF AUTHORIZED CONTRACT AND ENGINEERING PAYMENTS
BRIDGES AND PATCO SYSTEM
February 17, 2016
Completed Work (Billed)
1
REPORT OF THE CHIEF EXECUTIVE OFFICER
ATTACHMENT 4
RISK MANAGEMENT & SAFETY
1
DELAWARE RIVER PORT AUTHORITYINTEROFFICE COMMUNICATION
To: Toni P. Brown, Chief Administrative Officer
From: Marianne Staszewski, Director Risk Management & Safety
Subject: Risk Management & Safety January Activity Report
The DRPA Risk Management & Safety Staff were in attendance for the following meetings for the month of January:
Contractor Meetings Attended By Risk Management & Safety
DATE CONTRACTORDRPA
CONTRACT NO. PROJECT/WORK AREA
1/6, 1/20 Kaser Mechanical BF-41-2014 Progress Meeting for the BFB Chiller Replacement Project
1/7 South State BF-37-2013Project Progress Meeting 5th Street Philadelphia tunnelrehabilitation
Safety Meetings Attended By Safety Specialists * attended by Director of Risk Management
DATE NAME OF MEETING
1/6 Monthly C&M Managers Meeting
1/12 * Monthly Incident Accident Investigation Committee meeting
1/12 Monthly Work Place Safety Meeting at the BFB
1/19 * Monthly Risk Management & Safety Staff meeting with CAO
1/19 Monthly Work Place Safety Meeting at the BRB
1/20 * Monthly Bridge Directors meeting with Risk Management, Safety and Fleet Management
1/20 Monthly Safety Department SOP Review
1/25 * Monthly staff meeting with Safety Specialists & Director of Risk Management
1/26 Monthly Work Place Safety Meeting at the WWB
1/27 * Monthly Meeting Central Safety & Health Committee meeting
1/27 Monthly Meeting Programs & Activities Subcommittee
1/28 * Administration Division Staff Meeting
1/29
Demonstration meeting with Selective’s Safety Management Technical Specialist and the HRS training
administrator regarding the free video library streaming that covers key safety hazards and compliance
topics through Selective’s relationship with SafetySmart™, a web-based safety training and compliance
management service.
Risk Management Meetings Attended By Risk Management
1/8, 1/26 Monthly Real Estate Committee meeting
1/11Meeting with HRS, Fleet, and Bridge Operations staff regarding updated policies for the new GPSsystem
1/12, 1/21 Weekly Staff Meetings with CAO
1/14
Conference call for the final 2015 quarterly AIG OCIP Claims Review attended by the DRPA General
and Deputy General Counsel, Director of Risk Management & Safety, AIG claims specialists, OCIP
defense attorneys and the claims representative from Turner Surety Insurance Brokerage.
1/15 Senior Staff meeting
1/25 Administration Division Agenda Review Meeting
1/28Weekly conference call on OCIP litigated claims with AIG claim representatives, TSIB and defensecounsel
2
The DRPA Risk Management & Safety Staff were involved in the following training activities for the month ofJanuary:
Training Coordinated or Conducted by DRPA Safety - * Attended By Risk Management & Safety
DATE TYPE OF TRAINING
1/21, 1/22 Monthly Mandatory OSHA 10 Hour Safety Training conducted by DRPA Safety staff
1/25 New Hire Orientation
The DRPA Risk Management & Safety Staff were involved in the following activities for the month of January:
The Safety staff conducted day time and night time random drug & alcohol testing on both Public Safetypersonnel (under policy 147A) and Construction & Maintenance personnel (under policy 147B).
Safety Specialists reviewed various Health and Safety plans from contractors who were awarded constructionand/or design projects during the month of January.
Safety Specialists reviewed and commented on various engineering Technical and Special Provisions documentsfor future DRPA projects. Safety Specialist conducted various site safety visits and inspections at DRPA Non-OCIP construction projects at the four bridges.
Risk Management reviewed and recommended the inclusion of proper insurance requirements on variousRequests for Bids from the Purchasing Department, Request for Proposals from the Engineering Department,Finance Department and third party contracts for the Legal Department.
Safety Specialist updated the Risk Management & Safety e.net page with the monthly safety tip for January“Winter Slip Prevention”.
REPORT OF THE CHIEF EXECUTIVE OFFICER
ATTACHMENT 5
AFFIRMATIVE ACTION REPORT
DRPA AFFIRMATIVE ACTION REPORT QUARTER ENDING: December 31, 2015
POs MBE/WBE AWARDED
TOTAL $ VALUE AVAILABLE FOR BID BY MBEs/WBEs THIS QUARTER:
$ MBE/WBE AWARDED
MBE- WBE- 31.4%
goods and supplies
procurement card (p-card)
$286,350.05
33.2%
AWARDED 1.8%
$95,005.97 TOTAL:
MBE: $89,905.97 $5,100.00
TOTAL # POs AWARDED TO ALL VENDORS THIS QUARTER:
65 MBE- WBE-
44.6%
AWARDED 29 TOTAL:
MBE: 27 2 3.1% 41.5%
WBE:
WBE:
TOTAL $ P-CARD PURCHASES
$365,897.52
TOTAL P-CARD TRANSACTIONS
1,489
$ MBE/WBE/VOB AWARDED
TOTAL MBE/WBE/VOB TRANSACTIONS
2.6%
AWARDED
AWARDED
2.4%
MBE- WBE- VOB-
MBE- WBE- VOB-
KEY:
0.9% 1.4% 0.3%
1.6% 0.7% 0.1%
MBE: WBE:
VOB:
TOTAL:
WBE: MBE:
VOB:
TOTAL:
PO=PURCHASE ORDER
MBE=MINORITY BUSINESS ENTERPRISE
WBE=WOMEN BUSINESS ENTERPRISE
VOB=VETERAN OWNED BUSINESS
$3,438.50 $5,144.65
$1,047.70
$9,630.85
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DRPA EEO CATEGORIES(By State)
STATE OF
RESIDENCE
JOB TITLE DE NJ PA
1 Chief Executive Officer 12 Chief Administrative Officer 13 Chief Operating Officer4 Deputy Chief Executive Officer 15 Chief Financial Officer 16 Chief Engineer 17 Deputy General Counsel 1 18 General Counsel/Corporate Secretary 1
1 Director, Government Relations 12 Director, Information Services 13 Police Chief 14 Bridge Directors 25 Director, Fleet Management 16 Director, Human Resource Services 17 Director, Risk Management & Safety 18 Manager, Construction & Maintenance 19 Manager, Planning & Design 110 Captain of Police 111 Inspector General 112 Director, Strategic Initiatives 113 Director, Corporate Communications & Community Relations 1
1 Construction & Maintenance Manager 1 32 Fleet Shop Manager - South 13 Manager, Budget/Financial Analysis 14 Manager, Capital Grants 15 Manager, Community Relations & Corporate Communications 16 Manager, Customer Service 17 Manager, Government Relations 18 Manager, Internal Audit 19 Manager, Payroll 110 Manager, Procurement & Stores 111 Manager, Production Systems 112 Manager, Revenue Audit 113 Toll Manager 1 1
Page 1 of 6 As of JANUARY 31, 2016
DRPA EEO CATEGORIES(By State)
STATE OF
RESIDENCE
JOB TITLE DE NJ PA
1 Electrical Foreman 42 HVAC Foreman 23 Lead Programmer/Analyst 14 Maintenance Foreman 1 7 15 Sr. Accountant 16 User Support Group Leader 17 Highway Foreman 1 5 18 Fleet Foreman 29 Purchasing Agent 1
1 Supervisor, Print Shop 12 Supervisor, Central Storeroom 1
OFFICIALS & MANAGERS (Total By State) 2 45 22
TOTAL OFFICIALS & MANAGERS 69
1 Lieutenant of Police 4 2
1 Plaza Supervisor 1 11 10
1 Graphic Design Administrator 12 Administrative Coordinator 1 7 43 C&M Technical Assistant 24 Grants Specialist 15 HRS Specialist 1 16 HRS Specialist, HRIS 17 Sr. Reproduction Technician 17 Purchasing Specialist 3 18 EEO Specialist 1
1 Project Manager, HS & EM 12 Administrator, Compensation/HRIS 13 Administrator, Employee Relations, Programs & Policies 14 Administrator, Staffing & Recruiting 1
Page 2 of 6 As of JANUARY 31, 2016
DRPA EEO CATEGORIES(By State)
STATE OF
RESIDENCE
JOB TITLE DE NJ PA
5 Administrator, Training & Employee Development 16 Associate Engineer 17 Claims Administrator 1 18 Construction Contract Compliance Specialist 19 Payroll Administrator 110 Accountant 1 111 Auditor 112 Budget Analyst 113 Project Analyst 114 Contract Administrator 215 Financial Analyst 116 Revenue Analyst 117 Safety Specialist 1 118 Technical Support Administrator & Environmental Coordinator 1
1 Assistant General Counsel 3 22 Electrical Engineer 13 Principal Engineer 24 Senior Engineer 4 1
PROFESSIONALS (Total By State) 2 58 28
TOTAL PROFESSIONALS 88
1 Police Officer 3 70 23
1 Corporal of Police 12 2
1 Sergeant of Police 1 16 5
SERVICE WORKERS (Total By State) 4 98 30
TOTAL SERVICE WORKERS 132
1 HVAC Technician 7 2
Page 3 of 6 As of JANUARY 31, 2016
DRPA EEO CATEGORIES(By State)
STATE OF
RESIDENCE
JOB TITLE DE NJ PA
1 Auto Technician 12 3
1 Electrical Technician 16 6
1 Construction & Maintenance Mechanic 3 33 11
1 Maintenance Technician 32 9
CRAFT WORKERS (SKILLED) (Total By State) 3 100 31
TOTAL CRAFT WORKERS (SKILLED) 134
1 Programmer/Analyst 1 12 Systems Administrator 8 13 Data Base Administrator 14 Network Technician 45 User Support Administrator 1 16 Business Analyst 1
TECHNICIANS (Total By State) 1 16 2
TOTAL TECHNICIANS 19
1 Executive Assistant to the CEO 12 Executive Legal Secretary 13 Legal Assistant 14 Customer Service Coordinator 25 Executive Secretary 16 Legal Secretary 27 Legal Assistant, Claims 1
1 Sr. Accounting Clerk 1
Page 4 of 6 As of JANUARY 31, 2016
DRPA EEO CATEGORIES(By State)
STATE OF
RESIDENCE
JOB TITLE DE NJ PA
2 Accounting Clerk 1 13 Central Stores Clerk 14 Data Base Clerk 25 Administrative Clerk (Revenue Audit) 16 Building Services Clerk 2 17 Dispatcher 15 18 File Clerk 1 19 Purchasing Clerk 110 Media Specialist 1
1 Administrative Secretary 7 5
1 Revenue Auditor 1 4 1
1 Toll Collector 38 19
1 Revenue Operations Clerk 2 1
OFFICE & CLERICAL (Total By State) 1 80 36
TOTAL OFFICE & CLERICAL 117
TOTAL EMPLOYEES BY STATE 13 397 149
TOTAL DRPA EMPLOYEES - 559
Page 5 of 6 As of JANUARY 31, 2016
DRPA EEO CATEGORIES(By State)
STATE OF
RESIDENCE
JOB TITLE DE NJ PA
SUMMARY (Employee Class)
NON-REP 5 127 64
196
IUOE 3 155 52
210
IBEW 1 17 3
21
FOP 4 98 30
132
Page 6 of 6 As of JANUARY 31, 2016
PATCO EEO CATEGORIES(By State)
STATE OF
RESIDENCE
JOB TITLE DE NJ PA
1 General Manager 1
2 Director, Equipment 1
3 Director, Fare Collection Operations 1
4 Director, Finance 1
5 Director, Transit Services 1
6 Director, Way & Power 1
7 Technical Supervisor, Transit Services 1
8 Technical Supervisor, Civil & Mechanical Systems 1
9 Technical Supervisor, Equipment 1
10 Manager, Electrical & Electronics 1
11 Manager, Power, Signals & Communications 1
12 Manager, Systems Safety 1
13 Manager, Track, Structures & Mechanical 1
14 Manager, Track & Signals 1
15 Supervising Dispatcher 1 1
16 Dispatcher 5 1
17 Dispatcher Trainee 3 1
18 Electrical Foreman 4 1
19 Fare Collection Foreman 1
20 Mechanical Foreman 2
21 Payroll Administrator 1
22 Senior Accountant 3
23 Track Foreman 2 1
24 Purchasing Agent 1
25 Maintenance Foreman 1
26 Supervisor, Passenger Services 1
27 Money Room Supervisor 1
28 Supervisor, Transit Services 5
29 Supervisor/Traffic Analyst 3 1
30 Traffic Analyst 1
31 Supervisor, Storeroom 1
32 Custodial Foreman 1
33 Station Supervisor 9 1
OFFICIALS & MANAGERS (Total By State) 0 59 8
TOTAL OFFICIALS & MANAGERS 67
Page 1 of 3 As of January 31, 2016
PATCO EEO CATEGORIES(By State)
STATE OF
RESIDENCE
JOB TITLE DE NJ PA
1 Project Manager, Technical 1
2 Fare Collection System Analyst 1
3 Safety Specialist 1 1
4 Administrative Coordinator to GM 1
5 Administrative Coordinator 1
6 Purchasing Specialist 2
PROFESSIONALS (Total By State) 0 6 2
TOTAL PROFESSIONALS 8
1 Train Operator 1 44 9
OPERATIVES (SEMI-SKILLED) (Total By State) 1 44 9
TOTAL OPERATIVES (SEMI-SKILLED) 54
1 Custodian 1 24 10
2 Revenue Collector 1
SERVICE WORKERS (Total By State) 1 25 10
TOTAL SERVICE WORKERS 36
1 Storekeeper 5
2 Accounting Clerk 2
3 Payroll Clerk 1
4 Administrative Secretary 4 1
5 Purchasing Clerk 1
6 Customer Service Agent/Traffic Checker 4 1
7 Data Entry Clerk 1
OFFICE & CLERICAL (Total By State) 0 17 3
TOTAL OFFICE & CLERICAL 20
Page 2 of 3 As of January 31, 2016
PATCO EEO CATEGORIES(By State)
STATE OF
RESIDENCE
JOB TITLE DE NJ PA
1 Electronic Technician 1 17
2 Machinist 1/C 2
3 Machinist 1/C Tool Maker 1
4 Maintenance Mechanic 1/C 2
5 Mechanical & Structural Technician 11 1
6 Maintainer 19 5
7 Equipment Electrician 4 3
8 Equipment Electrician A/C 4
9 Machine Operator 1/C 3
10 Equipment Mechanic 20 1
11 Fare Collection Repairman 2 1
12 Grounds Keeper 1
13 Track Mechanic 16 6
14 Welder 1
CRAFT WORKERS (SKILLED) (Total By State) 1 103 17
TOTAL CRAFT WORKERS (SKILLED) 121
TOTAL EMPLOYEES BY STATE 3 254 49
TOTAL PATCO EMPLOYEES 306
SUMMARY (Employee Class)
NON-REP 0 82 13
95
TEAMSTERS 3 172 36
211
Page 3 of 3 As of January 31, 2016
REPORT OF THE CHIEF EXECUTIVE OFFICER
ATTACHMENT 6
LEGAL STATISTICS REPORT
Matter Count Report
by Open Date ; opendate: from 01/01/2016 up to 01/31/2016
by Matter Sub-Type
Date Range: 01/01/2016 01/31/2016to
Range RangeMattersMatter Sub-Type
Opened In Closed InTotal Pending
Bankruptcy / Debt Collections 1 1 0
Civil Rights / ADA / Disability 1 1 0Contracts / Consulting 2 3 1Contracts / Cooperation 1 1 0
Contracts / Insurance 0 1 1Contracts / Memorandum of 1 1 0Contracts / Operating 2 2 0
Contracts / Project Labor Agreement 1 1 0Contracts / Purchase 13 16 3Contracts / Real Estate Lease 2 2 0
Contracts / Real Estate Right of Entry 2 3 1Contracts / Rental 1 1 0Contracts / Service 11 11 0
Contracts / Termination 0 1 1Employment / ADA 2 2 0Employment / Policies & Procedures 0 1 1
Employment / S/L Term Disability 3 3 0Employment / Short Term Disability 8 9 1Employment / Unemployment 0 1 1
Employment / Workers' Compensation 9 9 0Environmental / Certification 0 1 1Financial / Settlement 0 1 1
Insurance / Application 1 1 0
CaseTrack
02/08/2016 1Page:
Range RangeMattersMatter Sub-Type
Opened In Closed InTotal Pending
Intellectual Pr / Trademark 0 1 1
Investigation / Internal 0 1 1Labor / Arbitration 2 2 0Personal Injury / Slip and Fall 4 4 0
RFP/Bid / Construction 1 1 0RFP/Bid / Consulting Services 1 1 0RFP/Bid / Service 1 1 0
Right to Know / 1 1 0Right to Know / Records Review 2 3 1Subpoena / Documents 4 4 0
Subpoena / Videotape 1 1 0
34 Items 78 93 15
CaseTrack
02/08/2016 2Page:
CFO REPORT
February 10, 2016
2014 vs. 2015 YTD thru 11/30/15 2014 Actual 2015 Actual Year-to-Year Change % Change
DRPA Traffic 43,922,419 45,051,137 1,128,718 2.57%
DRPA Toll Revenues 272,874,522$ 281,455,378$ 8,580,856$ 3.14%
Average Toll 6.2126$ 6.2475$ 0.0348$ 0.56%
Note: Snow impacted January and February 2014
DRPA Traffic Increase (Decrease) from prior month 229,026
DRPA Revenue Increase (Decrease) from prior month 1,455,167$
2014 vs. 2015 YTD thru 12/31/15 2014 Actual 2015 Actual Year-to-Year Change % Change
PATCO Ridership 10,007,256 10,169,487 162,231 1.62%
PATCO Net Passenger Revenues 24,389,638$ 25,036,642$ 647,004$ 2.65%
Average Fare 2.4372$ 2.4619$ 0.025$ 1.02%
PATCO Ridership Increase (Decrease) from prior month 57,523
PATCO Revenue Increase (Decrease) from prior month 147,359$
2015 YTD thru 11/30/15 2015 Budget (11 mo) 2015 Actual (11 mo) (Under) / Over Budget % (Under) / Over Budget
DRPA Traffic 43,599,927 45,051,137 1,451,210 3.33%
DRPA Toll Revenues 267,802,085$ 281,455,378$ 13,653,293$ 5.10%
Note: Snow impacted January and February 2014
DRPA Traffic Increase (Decrease) from prior month 221,064
DRPA Revenue Increase (Decrease) from prior month 1,527,837$
2015 YTD thru 12/31/15 2015 Budget (12 mo) 2015 YTD Actual (12 mo) (Under) / Over Budget % (Under) / Over Budget
PATCO Ridership 10,200,000 10,169,487 (30,513) -0.30%
PATCO Net Passenger Revenues 24,526,170$ 25,036,642$ 510,472$ 2.08%
PATCO Ridership Increase (Decrease) from prior month 103,868
PATCO Revenue Increase (Decrease) from prior month 304,852$
2015 YTD thru 12/31/15 2015 YTD Budget 2015 YTD Actual (Under) / Over Budget % (Under) / Over Budget
DRPA Budget 89,028,316$ 85,290,717$ (3,737,599)$ -4.20%
PATCO Budget 52,260,293$ 48,534,448$ (3,725,845)$ -7.13%
Total 141,288,609$ 133,825,165$ (7,463,444)$ -5.28%
Note: includes expenses of approximately $975,000 related to Pope September visit.
Total Budget (Under) Budget - Increase/Decrease from prior month 1,474,601$
2015 YTD thru 12/31/15 2015 YTD Budget 2015 YTD Actual Under / (Over) Budget % Under / (Over) Budget
PATCO Subsidy (26,252,718)$ (21,301,448)$ 4,951,270$ 18.86%
Funding Source 01/31/2015 Actual 01/31/2016 Actual Year-to-Year Change % Change
4.6$ -$ (4.6)$ 0%
1.4$ -$ (1.4)$ 0%
Victor Loan Paid & Race St. Sale -$ -$ -$ 100%
-$ 0.7$ 0.7$ 0%
6.0$ 0.7$ (5.3)$ -88.4%
Estimated Balance as of 01/31/2016 153.2$ million
-$ million
Estimated Balance as of 2/8/16 510.2$ million
Est. Change from previous month (1.0)$ million - decrease since 11/30/201512/31/2015
Decrease in project fund balances since last month
YEAR-TO-YEAR COMPARISON
CONSULTATIVE AND DELIBERATIVE WORKPAPERS
DRPA/PATCO UNAUDITED FINANCIAL SUMMARY - February 2016 Finance Committee Meeting
DRPA TRAFFIC / PATCO RIDERSHIP AND REVENUE
2015 vs. 2016 YTD (in millions)
BUDGET VS. ACTUAL
OPERATING EXPENSES - YTD December 31, 2015
BUDGET VS. ACTUAL
TOTAL CAPITAL EXPENDITURES
January YTD
ESTIMATED GENERAL FUND BALANCE
Project Fund Drawdowns
Total Capital Expenditures - Major Projects
General Fund
*Project fund consists of proceeds from the December 2013 revenue bond issuance. $348.8 million in net proceeds (after costs of issuance, debt reserve fund
requirements and reimbursement to the General Fund (per the Board's Resolution #12-051: Reimbursement of Expenditures Resolution). $195.9 million in proceeds
used to fund December 2013's through January 2016's capital expenditures. Due to system conversion, capital payments were pushed back one month.
(CAPITAL) PROJECT FUND BALANCE
Economic Development
February 10, 2016
CONSULTATIVE AND DELIBERATIVE WORKPAPERS
DRPA/PATCO UNAUDITED FINANCIAL SUMMARY - February 2016 Finance Committee Meeting
DRPA TRAFFIC / PATCO RIDERSHIP AND REVENUE
TOTAL BOND DEBT BY TYPE
As of 1/31/16 (in thousands of dollars)
Principal Outstanding % of Total
Bond Ratings
(Moody's/S&P)
Fixed Rate Bonds 940,435 940,435$ 63.2% see below
Variable Rate Bonds 547,100 36.8% see below
Total Debt 1,487,535$ 100.0%
Revenue Bonds 1,332,060$ 89.5% A3 stable/ A positive
PDP Bonds 155,475 10.5% Baa3 stable / BBB positive
Total Debt 1,487,535$ 100.0%
S&P upgraded DRPA Revenue and PDP Bonds in Nov. 2013 to A and BBB positive. In December 2014, S&P affirmed these ratings.
Moody's moved all DRPA bonds to stable outlook in Nov. 2012 and reaffirmed DRPA ratings in December 2015.
Letter of Credit O/S Principal Outstanding Letter of Credit Banks Principal Outstanding (est.) Expiration Date
2008 Rev. Ref. Bonds Series A 255,988$ Bank of America 130,215$ 7/22/16
Series B TD Bank 144,672 12/31/17
2010 Rev. Ref. Bonds Series A 321,927$ Royal Bank of Canada 138,073$ 3/18/16
Series B Barclay's Bank 138,073 3/20/18
Series C Bank of New York Mellon 45,781 3/18/16
Total Variable Debt 577,915$ 596,814$
KEY 2013/2014/2015 FINANCE PLAN ACTIONS
3. New Bond issue - Ratings agency (Moody's & S&P) and investor presentations completed in November. S&P Ratings increased from A- to A.
4. S&P affirms ratings December 2014.
5. February - Barclays agreed to extend the LOC to March 20, 2018, at a reduced facility rate of 7.5 basis points - expected $ 95k reduction in annual fees.
6. July: Swap Novation - UBS replaced as swap counterparty on both DRPA active swaps. TD Securities and Wells Fargo are the new counterparties
7. July - Loan Guarantee with TD Bank finalized.- $796K for 10 years
8. July : Reinstitution of E-ZPass Commuter Discount - December 1, 2015 implementation date.
10. DRPA working with Financial Advisors on strategy related to LOC Maturities in March and July 2016.
9. December: DRPA renewed OCIP LOC for one year, as required by insurance carrier
1. LOC extension letters being prepared for execution after Governor's veto period expires (Bank of America, BONY Mellon, and Royal Bank)
Original Notional Current Notional Amount
Amount Active Swaps* MTM Value Change from 12/31/15 Est. Change from 12/31/15
$811 $547 ($146.8) ($7.2) ($7.2)
TD Bank and Wells Fargo new swap counterparties.
*Current Notional Amounts: 1995 Revenue Bond swap currently $251.6 million; 1999 swap $295.5 million. Total $547.1 million
2016 Action Plan Initiatives
Total Swap Valuation - 12/31/2015 (in millions)
1. LOC restructuring for 2010 Revenue Refunding Bonds closed on March 21, 2013. Three new LOC providers. LOCs fees range from 0.45% to 0.70%.
2. 2008 Revenue Bond LOCs extensions were completed on June 28. Retaining TD Bank and Bank of America with fees at 0.655% to 0.70%, respectively.
DRPA BOARD MINUTES
FREE STATE REPORTING, INC.Court Reporting Transcription
D.C. Area 301-261-1902Balt. & Annap. 410-974-0947
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DELAWARE RIVER PORT AUTHORITY
BOARD MEETING
One Port Center2 Riverside DriveCamden, NJWednesday, January 20, 2016
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PRESENT
Pennsylvania Commissioners
Ryan Boyer, Chairman of DRPA/PATCO BoardRohan K. HepkinsAntonio Fiol-SilvaJohn Dougherty (for Pennsylvania Auditor General
DePasquale)Timothy Reese, Pennsylvania State Treasurer
(via telephone)
New Jersey Commissioners
Jeffrey Nash, Esq., Vice ChairmanE. Frank DiAntonioCharles FentressAlbert FrattaliRichard SweeneyTamarisk JonesRicardo Taylor
DRPA/PATCO Staff
John Hanson, Chief Executive Officer (DRPA/PresidentPATCO)
Maria Wing, Deputy Chief Executive OfficerRaymond Santarelli, General Counsel and
Corporate SecretaryKristen Mayock, Deputy General CounselStephen Holden, Deputy General CounselKathleen P. Vandy, Assistant General CounselJames White, Chief Financial OfficerDan Auletto, Acting Chief Operating OfficerToni Brown, Chief Administrative OfficerMichael Venuto, Chief EngineerSteve Reiners, Director, Fleet ManagementWilliam Shanahan, Director, Government RelationsMark Lopez, Manager, Government RelationsBarbara Holcomb, Manager, Capital GrantsGary K. Smith, Captain of Police, Public SafetyMike Reher, Sergeant, Public SafetyJohn Rink, General Manager, PATCO
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FREE STATE REPORTING, INC.Court Reporting Transcription
D.C. Area 301-261-1902Balt. & Annap. 410-974-0947
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DRPA/PATCO Staff (continued)
Susan Squillace, Manager, Procurement and Stores,DRPA/PATCO
David Gentile, Inspector GeneralKyle Anderson, Director, Corporate CommunicationsFran O'Brien, Manager, Customer and Community
RelationsAmy Ash, Contract Administrator, Contract
AdministrationKevin LaMarca, Director, Information ServicesJennifer DePoder, Financial Analyst, FinanceDarcie DeBeaumont, Senior Accountant, FinanceMike DiGiamberardino, Reproduction Technician,
Print ShopLarry Walton, Construction & Maintenance Manager,
Walt Whitman BridgeSheila Milner, Administrative CoordinatorElizabeth McGee, Acting Records ManagerNancy Farthing, Executive Assistant to the CEODawn Whiton, Administrative Coordinator to the
Deputy CEO
Others Present
Amy Herbold, Esq., Senior Counsel, New JerseyGovernor's Authorities Unit
Chelsea Guzowski, Director of Special Projects,Pennsylvania Governor's Office of the Budget
David Dix, Assistant to Chairman BoyerVictoria Madden, Chief Counsel (for Pennsylvania
Auditor General DePasquale) (via telephone)Christopher Gibson, Esq., Archer & Greiner,
(New Jersey Counsel)Alan Kessler, Esq., Duane Morris LLP
(Pennsylvania Counsel)Stephanie Kosta, Esq., Duane Morris LLP
(Pennsylvania Counsel)William Hosey, President, IBEW 351Richard Franzini, Business Agent, IUOE 542Olivia C. Glenn, Regional Manager, New Jersey
Conservation Foundation
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FREE STATE REPORTING, INC.Court Reporting Transcription
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Others Present (continued)
Craig Hrinkevich, Wells FargoTara Chupka (Assistant to John Dougherty)Brian Stevenson
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I N D E X
Page
Roll Call 5
Report of the CEO - January 2016 7
Report of the CFO 152
Approval of December 9, 2015 Board MeetingMinutes 17
Monthly List of Previously Approved PaymentsCovering Month of December 2015/Monthly Listof Previously Approved Purchase Orders andContracts of December 2015 18
Approval of Operations & Maintenance CommitteeMeeting Minutes of December 3, 2015, andJanuary 5, 2016 18
Adoption of Resolutions Approved by Operations &Maintenance Committee on January 5, 2016 19
DRPA-16-001 Design Services for CommodoreBarry Bridge StructuralRehabilitation Phase 2
DRPA-16-002 Capital Project ContractModification
DRPA-16-003 Procurement and Delivery ofHighway Rock Salt for DRPA andPATCO Facilities
DRPA-16-004 Procurement of Three (3) 2016Dump Trucks
DRPA-16-005 Procurement of Two (2) CaseWheel Loaders
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FREE STATE REPORTING, INC.Court Reporting Transcription
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I N D E X (Continued)
Page
DRPA-16-006 Procurement of One (1) 2016120-Gallon Pressure Pot TruckMounted Striper
DRPA-16-007 Procurement of Two (2) 2016JLG Aerial Lifts
DRPA-16-008 Sustainability and ResourceEfficiency Consulting Services
DRPA-16-009 Public Safety Radio Five (5) YearReplacement Project (Year #4)
Adoption of Resolutions Approved by Finance Committeeon January 13, 2016
DRPA-16-010 Authorization for Extension ofStated Expiration Dates ofLetters of Credit for 2008A,2010B and 2010C RevenueRefunding Bonds and to DisseminateRFPs for Alternate ofReplacement Liquidity andFinancing Structures for 2008A,2008B, 2010A, 2010B, and 2010CRevenue Refunding Bonds 20
DRPA-16-011 Modifications of CurrentTemporary Workers Contracts 24
DRPA-16-012 Records Management ConsultantServices 24
DRPA-16-013 Compensation for SpecialtyLegal Services 24
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I N D E X (continued)
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Adoption of Resolution Approved by Audit Committeeon January 13, 2016 24
DRPA-16-014 Ethics Policy
Unfinished Business 252
New Business
DRPA-16-015 Consideration of Pending DRPAContracts (Between $25,000and $100,000) 252
DRPA-16-016 Salary Adjustment for ChiefExecutive Officer John Hanson(Tabled) 252
Citizens Advisory Committee Report 22
Public Comment 263
Executive Session/Adjournment 37
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P R O C E E D I N G S
(9:26 a.m.)
CHAIRMAN BOYER: The meeting of the Delaware
River Port Authority is now in session. Please rise
for a moment of silence and the pledge to the American
flag.
(Pledge of Allegiance)
CHAIRMAN BOYER: I'm going to ask the
Corporate Secretary to call roll, please.
MR. SANTARELLI: Chairman Boyer?
CHAIRMAN BOYER: Present.
MR. SANTARELLI: Vice Chairman Nash?
VICE CHAIRMAN NASH: Here.
MR. SANTARELLI: Commissioner Dougherty?
COMMISSIONER DOUGHERTY: Present.
MR. SANTARELLI: Commissioner DiAntonio?
COMMISSIONER DiANTONIO: Present.
MR. SANTARELLI: Commissioner Fiol-Silva?
COMMISSIONER FIOL-SILVA: Present.
MR. SANTARELLI: Commissioner Fentress?
COMMISSIONER FENTRESS: Here.
MR. SANTARELLI: Commissioner Hepkins?
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COMMISSIONER HEPKINS: Present.
MR. SANTARELLI: Commissioner Frattali?
COMMISSIONER FRATTALI: Present.
MR. SANTARELLI: Treasurer Reese?
TREASURER REESE: Present, by phone.
MR. SANTARELLI: Commissioner Jones?
COMMISSIONER JONES: Here.
MR. SANTARELLI: Commissioner Sweeney?
COMMISSIONER SWEENEY: Here.
MR. SANTARELLI: Commissioner Taylor?
COMMISSIONER TAYLOR: Here.
MR. SANTARELLI: You have a quorum.
CHAIRMAN BOYER: Thank you, Mr. Secretary.
First, I would like to apologize for our tardy
starting. However, we have a culture here at the
Delaware River Port Authority of openness and
transparency. With all transparency, we wanted to meet
because we have a great crowd today and I'm sure that
is because it has reached the press that we were
considering giving our CEO, a very capable and able
CEO, a very much needed raise.
However, we found out that that didn't go
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through the Committee process. So with an abundance of
caution, decided on the fact of transparency, we're
going to table that resolution today so that it can go
through the full Committee process like every other
raise goes through. So, we won't be having that
discussion today.
With that being said, we have a report from
the Chief Executive Officer, John Hanson.
MR. HANSON: Thank you, Chairman.
VICE CHAIRMAN NASH: You're still giving it?
(Laughter)
MR. HANSON: Under the highlight of
stewardship, a customer wrote in, "Thank all of you
who helped me find my phone. I left my phone on the
train at the Collingswood stop. I panicked because,
well, that's what we all do when we lose our phone
with everything in it. I quickly called the service
number, and they informed me they would search for it
as soon as the train got to Lindenwold. Someone
graciously returned it, and I got a call from Station
Supervisor Fran Egolf at the Lindenwold Station. She
was super nice. She helped me and reassured me that
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the phone was safe. I know losing a phone isn't the
biggest hardship, but I have so much on that thing.
Thank you to everyone who helped, and a big thank you
to whoever turned in my phone. I appreciate all of
you guys' work. Keep it up."
Another customer wrote in to commend actions
of the PATCO staff. "While walking up to the exit in
Haddonfield, I could not find my car key. At the top
of the stairs, Joe asked if there was a problem.
PATCO Joe made several calls on my behalf. He said
the last train to Lindenwold would be checked for the
keys. The red phone rang, and we were informed that
the train had been checked and there were no keys.
Shortly after that, Transit Ambassador Joe Ferro was
called -- was informed that my keys had been turned
into lost and found in Lindenwold by a passenger. I
decided to retrieve my keys on Monday at Lindenwold.
So here it is, an endorsement of employees who helped
make my mistake, which made for a bad Saturday
afternoon, turn into a pleasant encounter with a
concerned PATCO employee."
A customer wrote in to praise Transit
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Ambassador Shalayah Lewis. "Thank you very much for
finding my FREEDOM Card at 8th and Market Streets last
night and turning it in to Lost and Found at PATCO. I
did not realize I had lost it until I arrived at the
Ashland Station, where I used the red phone to report
my missing card. It must have fallen out of my coat
pocket somewhere between the turnstile and the
elevator at 8th and Market. Unfortunately, I had
earphones on, listening to music, so I did not hear my
name being called. I appreciate you, Shalayah, and
Lost and Found’s Fran Egolf for going to great lengths
to find me and give me my card back. It's comforting
to know that with all that's happening in the world
today, there are nice people who go the extra mile."
Finally, before I list the emergency actions
that I've taken, I'd like to recognize the Annual
Financial Reporting Team. The Government Finance
Officers Association, the GFOA, has once again awarded
the DRPA the prestigious Certificate of Achievement
Award for Excellence in Financial Reporting for the
23rd consecutive year. This Certificate is the
highest form of recognition in governmental accounting
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and financial reporting and its attainment represents
a significant accomplishment by a government and its
management.
Special thanks go to the following employees
who have been designated as primarily responsible for
winning the Comprehensive Annual Financial Report
Award: CFO James White; Acting Accounting Manager
Darcie DeBeaumont; Financial Analyst Jennifer DePoder;
Mike DiGiamberardino and Fritz Sims from Printing
Services; Mike Williams, Acting Manager of Corporate
Communications; Fran O'Brien, Manager of Corporate
Communications and Community Relations; and me.
I'd like to ask you all to come up for a
picture at the front and receive your Award from the
Chairman.
(Pause)
MR. HANSON: Finally, under CEO Emergency
Powers, a purchase order was approved in the amount of
$18,494.72 for three Reuland drive motors with speed
brake for our removable maintenance platforms. The
three Ben Franklin Bridge movable platforms have been
out of service for approximately one and a half years
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due to the Ben Franklin Bridge Track Rehabilitation
Project rigging and suspended work platforms. They
have been recently brought back into service for
access support for dismantling the track
rehabilitation contractor rigging. Motor replacement
was necessary on a platform in order to restore
platform operation.
There are currently no more spare units and it
was essential that we obtain additional motors to
service spares due to the long lead for ordering such
parts, approximately seven weeks. In the absence of
spares and if additional motors would fail, the
platform would have been rendered inoperable.
That concludes my verbal remarks.
CHAIRMAN BOYER: Do we have any questions on
this report? I'll entertain a motion to accept the
CEO's report.
COMMISSIONER FRATTALI: So moved.
COMMISSIONER DiANTONIO: Second.
CHAIRMAN BOYER: All those in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes have it.
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Now we'll have the Report of the Chief
Financial Officer, Mr. Jim White.
MR. WHITE: Good morning, Mr. Chair, Mr. Vice
Chair, and Commissioners.
MR. WHITE: I'd like to make mention briefly
three areas this morning. Since we've just concluded
the year 2015, this is a document that Jennifer
DePoder and I put together related to the Financial
Accomplishments and Achievements for 2015. I'd like
to also talk just briefly about our financial stats
and just make mention of a letter of credit SS&R that
you will be voting on today.
If you look at the CFO section of your packet,
you'll see Financial Accomplishments and Achievements
for 2015. One of the things I just wanted to
highlight is the importance of the participation of
the CAO's area, General Counsel, Finance, obviously,
and PATCO in terms of these achievements. But, I
wanted to thank especially the leadership of the
Finance Committee in partnering with us in order to
achieve some of these key items.
I won't go through this complete document, but
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I just wanted to highlight some things. If you look
at this particular document, you'll see that we
achieved a lot of things in 2015 in the following
areas: E-ZPass initiatives; debt swap related
initiatives; and, reduction in our existing Economic
Development legacy programs. And, again, just to
emphasize, we are obviously out of any new economic
development projects, but we still are winding down
certain lingering aspects of that Program.
Bond Indenture Compliance: we have to comply
with various bond indentures, particularly related to
our senior debt. Achievements in Insurance: in PATCO,
and other Finance initiatives, one of which we just
spoke about a few minutes ago with achieving the DRPA
Certificate of Achievement for Excellence for the 23rd
consecutive year. That is largely due to the
leadership of our Acting Accounting Manager Jen
DePoder and Corporate Communications, etc.
So, very briefly, on the E-ZPass initiatives,
the commuter credit was implemented December the 1st.
I am advised that as of the 10th or the 11th of this
month, commuters received a credit somewhere in the
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area of around $100,000; that was related to the
frequent commuters who had 18 trips during the month
of December. It's not unusual during December for
people to take vacations, so I'm not surprised that
number is relatively low. The key thing is that we
implemented that after several months of programming
and we appreciate the Board's work in supporting that
program.
A number of other E-ZPass initiatives:
participation in the new CSC contract. On the debt
side, we extended Barclay’s loan. We did a
significant swap novation authorization that netted us
roughly $850,000; that payment was unexpected to a
certain degree. Moody's reaffirmed DRPA’s ratings in
December, and we are still at work, working on LOC
restructuring.
We had, due to the great efforts of the Legal
Department, roughly $5 million in loans related to
Victor Lofts and the LEAP Academy that were paid off.
An LOC guarantee was discharged, reducing our
reserves. There are a number of other things that are
shown there. In terms of bond compliance, we
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basically have to certify to the bond trustees that we
are able to meet the net revenue requirement in our
bond indentures; we easily exceeded that for 2015 by
over $69 million and will exceed it for 2016 by over
$50 million.
On the insurance side, the AmeriHealth renewal
with only a one percent increase was significantly
important to us in terms of pulling together the
budget. Usually, that number is a lot higher and it
creates some issues as we finalize the budget.
On the PATCO side, a Customer Service
initiative -- the ability to use credit/debit cards at
PATCO's TVMs to buy paper tickets -- was rolled out in
June, 2015.
Again, all of these things were a partnership
between DRPA staff, the Finance Committee and the
Board. Other initiatives included the growth in the
General Fund and the passage of the DRPA and PATCO
Operating and Capital budgets. And, of course, we are
in the process of the SAP implementation; Finance and
other departments have been significantly involved in
that rollout.
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In terms of the financial stats, continued
good news. Through October, as you'll see in these
numbers, we are well ahead -- in a comparison between
2014 and 2015 -- in terms of traffic and revenues.
From what I can see, unaudited traffic particularly in
November and December were the highest two months
above the previous year, so these numbers are going to
increase in November and December once those figures
are audited.
PATCO ridership against last year is up, as
are the net passenger revenues. This is just a great
success story throughout the Authority in terms of
both PATCO and DRPA. We are significantly ahead
against budget for DRPA and toll revenues. Again,
those numbers will increase as we audit November and
December figures.
PATCO ridership is slightly down through
November 30th; but year-to-date versus budget,
ridership was only around 31,000 ridership less than
budget, and a lot of that is attributable to the snow
in the early part of the year.
In terms of budget, we are significantly under
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budget and we continue to have significant resources
both in the Project Fund and the General Fund to
position us to fund our Five-Year Capital Program.
The final thing I'd like to mention is that
before the Board today there is a rather complex SS&R
related to, essentially, the extension of several
Letters of Credit. We have three Letters of Credit
that are maturing this year with Bank of America,
Royal Bank of Canada, and The Bank of New York Mellon.
The resolution basically calls for extending those
Letters of Credit in order to give us sufficient time
to complete an RFP so that we can make a decision as
to whether or not we will renew them or seek
alternative financing structures in order to diversify
that particular portfolio. That concludes my remarks.
CHAIRMAN BOYER: Thank you. Does anyone have
any further questions of the Chief Financial Officer?
If not, we'll move for the Approval of December 9,
2015, DRPA Board Meeting Minutes.
COMMISSIONER FIOL-SILVA: So moved.
CHAIRMAN BOYER: Can I get a second?
COMMISSIONER HEPKINS: Second.
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CHAIRMAN BOYER: All those in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes have it.
On Monthly List of Previously Approved
Payments and Monthly List of Previously Approved
Purchase Orders and Contracts Covering the Month of
December 2015, I'll accept a motion to receive and
file the Monthly List of Previously Approved Purchase
Orders and Contracts Covering the Month of December
2015.
COMMISSIONER HEPKINS: So moved.
COMMISSIONER FRATTALI: Second.
CHAIRMAN BOYER: All those in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes have it.
Approval of the Operations and Maintenance
Committee Meeting Minutes of December 3, 2015 and
January 5, 2016.
COMMISSIONER FENTRESS: So moved.
COMMISSIONER FRATTALI: Second.
CHAIRMAN BOYER: All those in favor?
ALL: Aye.
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CHAIRMAN BOYER: All opposed? Ayes have it.
Adoption of Resolutions approved by the
Operations and Maintenance Committee on January 5,
2016. There are nine items from the Operations and
Maintenance Committee for consideration. They are as
follows:
DRPA-16-001: Design Service for Commodore
Barry Bridge Structural Rehabilitation Phase 2.
DRPA-16-002: Capital Project Contract
Modification.
DRPA-16-003: Procurement and Delivery of
Highway Rock Salt for DRPA and PATCO Facilities.
DRPA-16-004: Procurement of three 2016 Dump
Trucks.
DRPA-16-005: Procurement of two Case Wheel
Loaders.
DRPA-16-006: Procurement of one 2016
120-Gallon Pressure Pot Track Mounted Striper.
DRPA-16-007: Procurement of two 2016 JLG
Aerial Lifts.
DRPA-16-008: Sustainability and Resource
Efficiency Consultant Services.
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DRPA-16-009: Public Safety Radio Five-Year
Replacement Project, Year Number 4.
COMMISSIONER FENTRESS: Move the motion.
CHAIRMAN BOYER: Can I get a second?
COMMISSIONER DiANTONIO: Second.
CHAIRMAN BOYER: All those in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes carry.
Adoption of Resolutions approved by the
Finance Committee on January 13, 2016. There are four
items from the Finance Committee for your
consideration.
Authorization for Extension of Stated
Expiration Dates of Letters of Credit for 2008A,
2010B, and 2010C Revenue Refunding Bonds and to
Disseminate RFPs for Alternate of Replacement
Liquidity and Financing Structures for 2008A, 2008B,
2010A, 2010B, and 2010C Revenue Refunding Bonds.
Since that's so complicated, we are going to
do that as a stand-alone. Could I get a motion?
COMMISSIONER FRATTALI: So moved.
COMMISSIONER DiANTONIO: Second.
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CHAIRMAN BOYER: All in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes carry.
DRPA-16-011: Modification of Current Temporary
Workers Contracts.
DRPA-16-012: Records Management Consultant
Services.
DRPA-16-013: Compensation for Specialty Legal
Services.
Can I get a motion to adopt these resolutions?
COMMISSIONER FRATTALI: So moved.
COMMISSIONER SWEENEY: Second.
CHAIRMAN BOYER: All in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes carry.
Adoption of Resolution approved by the Audit
Committee on January 13, 2016. There is one item from
the Audit Committee for consideration. It is as
follows:
DRPA-16-014: Ethics Policy.
COMMISSIONER FENTRESS: Move the motion.
COMMISSIONER HEPKINS: Second.
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CHAIRMAN BOYER: All in favor?
ALL: Aye.
CHAIRMAN BOYER: Ayes carry.
There are no items for Unfinished Business.
New Business; there are two items for New
Business.
DRPA-16-015: Consideration of Pending DRPA
Contracts between $25,000 and $100,000.
COMMISSIONER FRATTALI: So moved.
CHAIRMAN BOYER: Second?
COMMISSIONER SWEENEY: Second.
CHAIRMAN BOYER: All in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes carry.
As we mentioned before, I'm taking a motion to
table DRPA-16-016: Salary Adjustment for the Chief
Executive Officer, John Hanson.
COMMISSIONER FENTRESS: Move the motion.
COMMISSIONER TAYLOR: Second.
CHAIRMAN BOYER: All in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes carry.
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Do we have a report for the Citizens Advisory
Committee?
(No response)
CHAIRMAN BOYER: There being none, do we have
any public comments? Go to the podium and please
state your name for the record and spell your last
name, please.
MR. HOSEY: Good morning, my name is Bill
Hosey, President of IBEW Local 351. I'm here for a
couple of reasons, and I'll give you a little history.
Right now, the IBEW 351 represents over 2,000 active
members and 800 retirees in South Jersey and other
locations. The retirees are in 20 states.
In this building we have 23 members of the
IBEW on the 6th Floor. We had proposed a certain wage
increase to the Labor Committee. The Labor Committee
was going to move it forward in November, but it got
pulled from November's meeting. The phone call I got
said that it was pulled over healthcare reasons; that
they wanted to see the different options for
healthcare.
Yesterday morning at six o'clock, my newspaper
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comes and I see in the Courier-Post the future
possibility of Mr. Hanson's raise. Through the day my
phone, of course, blew up and my e-mail was full with
different people questioning the raise.
I'll be clear; I support the raise. The IBEW
thinks that anybody that actually does their job
should get their money. And for him to be working at
a lesser rate than Mr. Matheussen did before him is a
shame. At the same time, though, there are 23
employees downstairs who have about 90 people in their
families. For those employees to have four years
without a pay increase -- and basically the four years
that was proposed ends up being a 7.95 percent
increase, just to make them whole, in my opinion, --
and for it not to move forward over healthcare,
especially since healthcare is not part of the package
to be negotiated, I think it's a mistake, and I think
it's a shame that it hasn't moved forward.
I believe those 23 people have earned that
raise. I believe the CEO should get his raise. It's
one of those things where if you just look at the
issue, there's just a right way to play things or do
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things. And with that said, he's owed the money and
so are the 23 employees.
They have come here day-in and day-out. And
I'm sure out of that group of 23, there might be some
college kids involved. When I say that, if the
freshmen start at Day 1 and the parents are thinking
“how am I going to afford the future increases of
college” and they don't get a raise, it's not what
we're all about. It's basically society.
And for this administration not to -- I know
where it ends up, it goes up to Trenton, and Trenton
is the issue, I understand that. But it's one of
those things where it should move forward. That’s
very clear as far as what this Board does, as far as
raises. I understand that the building didn't get a
raise for many years; last year they did get a raise,
and rightfully so. The people here that day-in and
day-out make sure South Jersey connects to
Philadelphia; they need to get their raises.
I'm here to make sure it's a front-burner
issue and it stays a front-burner issue with you and
Trenton. At the same time, make sure that it's done
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right as far as raises from the CEO all the way down
to the toll collector -- and I don't represent the
toll collectors. But, at the same time, the group
down on the 6th Floor keeps all the networks
continuing to work for this agency. There hasn't been
a glitch ever. They were here for the Pope, sleeping
here, for making sure that the bridges were actually
still active.
I ask you as Commissioners and as you, the
Chairman, to keep this as a front-burner issue. We
need to get this done as soon as possible. Thank you.
CHAIRMAN BOYER: Thank you. I appreciate
those remarks and I agree with the vast majority of
what you said. You can trust me and the Commissioners
that it is on the front burner. We'd like to thank
all the workers here who have worked without raises
and pay increases for an extraordinary amount of time.
Particularly when the Pope came, they shined. And
they should be rewarded for that.
We are working on that very diligently, and it
will be a top-burner issue for me.
Commissioner Dougherty?
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COMMISSIONER DOUGHERTY: Yes, I just want to
follow up my good friend and partner in the IBEW,
Mr. Hosey. This is the first time I've actually ever
spoken on an IBEW issue, all the times I've been here.
Like 90 percent of the clothing I have at home has
IBEW across the top of it. So that guy and the people
that he represents are in this building all the time.
He's been to at least 25 Board meetings since I've
been here, and he has been nothing but supportive. So
for him to get up and voice a concern, that is a much
larger concern for me today than it was yesterday,
because I know that he would not come here unless he
felt that something was broke.
Just to paraphrase my previous five minutes,
he's a good guy who loves this region, loves this
building, and respects this process. For him to get
up and say something, that means that he's getting
frustrated with what's going on here. Now, for him to
get frustrated that sends me a message that something
is broke inside.
Now, I know we don't have a big-time game plan
on how to handle raises. I've been talking about that
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for the last three years. I've asked for some sort of
business game plan or business approach to how we do
raises. We just can't keep asking people to work --
you know, this weekend, if we get hit with a couple of
feet of snow, we're going to ask people to come to
work, make sure these bridges stay open, make sure we
keep our revenue sources, and we're going to do it as
usual. People have to be rewarded and we just can't
pick and choose.
Again, the comment, because it will definitely
run parallel to Hanson's raise. If we had a game plan
that was a calculated, detailed – if we had a
transparent business game plan here, we wouldn't be
playing around with all these acting titles and moving
money around because we're paralyzed by politics or
we're paralyzed by -- in some cases, we've referred to
Trenton, it's not Trenton, it's here. We make the
case here on people, what they deserve, and we should
spend a little bit more time.
We table it and we talk about it in between
meetings. Let's spend some time. The greatest
resource that we have at the DRPA is the people who
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work here, so we have to make sure we make them a top
priority.
I've been here when we had no money. I was
here when we had a lot of conversation about the
money, where it was going. We were spending
$25 million on brick and mortar, when we should have
been spending $25 million and making sure that these
guys got raises and that they had healthcare.
Again, for him to get up, that just sends a
message to all of us that something is broke inside
the building right now.
CHAIRMAN BOYER: Any other comments?
VICE CHAIRMAN NASH: Yes, Mr. Chairman.
First, I agree with what has been said. Mr. Hosey,
I've known for many years as a good friend and a
terrific labor leader, representing the men and women
who serve the IBEW in New Jersey. And he is correct;
we have to take a hard look at this. The one
assurance that I can give to the representatives of
IBEW is that this is a top priority issue for us.
I don't believe that the system is broken. We
are now in a position because of our prudence over the
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past several years and outstanding management -- as
reflected in the certificates that you gave yourself
today, the management of this organization and the
financial management of the organization has resulted
in a position where the DRPA is in excellent financial
shape, as reflected by the reports of the Wall Street
rating agencies.
We are in a position now to provide reasonable
raises for the employees, as we did last year for the
non-represented. I think John's “raise” today is not
a raise, -- what has been suggested is that he take
over the salary that was left by his predecessor. The
job of CEO has a certain title and it has a certain
salary attached to it, and that is what this DRPA is
going to consider. It is not a raise, per se. He has
been earning the same amount of money as he did in his
former position as CFO.
So let's be very clear about that. I don't
want to criticize the media, but I think it was a
little bit misleading as it was reflected in some of
the articles. But the reason it is being tabled is
simply because we have a process. This raise did not
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go through a process.
One of the great things that we have
accomplished over the past several years is that we do
have transparency; it is important that all of the
raises, especially for the CEO, go through the Labor
Committee, are discussed there, are voted through the
Labor Committee, and then come back to the Board.
As far as the IBEW, because we are now in a
good financial position, we are in a position to
consider reasonable raises for the represented
employees. And, Bill, I can assure you that this is a
top-burner issue for the Chairman -- we have discussed
this many times -- and for the other Commissioners
that I've discussed it with, and we will get this
resolved.
It's not necessarily a Trenton issue. I think
Trenton just wants us to be prudent, because they are
dealing with not only the DRPA, which has a good
financial position, but they're dealing with all of
the authorities throughout the State of New Jersey and
the employees of the State of New Jersey, and they are
not all in such a good position. So they have to put
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the pieces of the puzzle together.
Our job is to understand that, to work with
them and to provide reasonable raises for our
employees. And we are working very hard to accomplish
that. I think within the next 30 days, we will have
done that. That's my position.
MR. HANSON: Chairman?
CHAIRMAN BOYER: We're going to go to Hanson,
then Commissioner Dougherty.
MR. HANSON: I just want to add that
Mr. Franzini from the IUOE is with us today; he is
also working very hard to try and resolve the issues
regarding the IUOE contract with us. I hear on a very
frequent basis from Mr. Bennett and Mr. Wells from the
Teamsters. All of these unions do not have contracts,
and we're working hard on that. So it is a big issue,
and we're talking about the people who do the work of
the organization.
CHAIRMAN BOYER: Commissioner Dougherty?
COMMISSIONER DOUGHERTY: No disrespect to
anybody at the table. I got paid to build buildings,
so when we were investing in economic development; it
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was against my best interest to say we should stop
doing that. I presented 90 percent of the resolutions
to put us on the proper footing we're in today. I
asked back then for a calculated game plan or a
structure under which we can compensate the people
that work here. I don't know how many years that has
been. In fact, I've been on the Board, off the Board,
and back on the Board since that occurred.
Instead of us saying that we're going to take
this seriously, let's say we're going to handle it in
the next 30 days. Let's just come up with a time
frame; we've got three contracts that are suspended or
open-ended. Look, I'm not running for president.
I've been consistent. So has Trenton been consistent.
We understand where Trenton stands pertaining to
raises and the economy here.
We balance this budget. We don't want papers.
We want raises.
CHAIRMAN BOYER: Commissioner Dougherty, with
that being said, I just want to let you know that we
have been diligently working on a game plan. We have
a CCI study that should be done within the next 15
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days, not 30 days, that will have a detailed listing
of not only salaries and where they should be, but
will compare the peer agencies in this region so that
we will have a very detailed argument when we go to
Trenton.
So, it is not like we're just bringing these
raises out of [thin air]. We have a very detailed,
structured approach that deals with numbers and
metrics that are measurable. It is my desire to have
this done by the next Board meeting or at least
present something to this Board at that time. And if
it goes up to Trenton and the governor exercises his
right to veto, that's something that we have to deal
with. But we have to do it in a very methodical
manner so that we have a reasonable amount of
certainty that he won't do that; I don't want to put
anyone on any train where they can see a raise but
it's like a mirage because we know that Trenton is not
going to pull.
But I agree that it starts with this table and
the will of this Board. I think this Board has the
will; we just have to put all the information that we
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have together. Toni Brown and her team have been
leading that study, and that study should be done and
complete within the next 15 days.
Commissioner Taylor?
COMMISSIONER TAYLOR: Is Trenton aware that if
we don't compensate our people, we're going to lose
good people? Any organization that is going to
continue to move in a positive direction certainly has
to have good people; we have to be competitive. I
would hope that Trenton -- or anyplace else -- takes a
good look at the need for us to be competitive with
other agencies.
CHAIRMAN BOYER: I take the tack that Vice
Chair Nash just took. I don't want to chastise the
media, but sometimes that is the media's job to
understand that it is, you know, as the opportunity
calls. When you pay people low wages in an era when
wages are going up slightly and the economy is good,
you risk losing good people. You risk the efficiencies
that we've developed, because once you lose people,
you lose the efficiency.
We're not widgets. You don't just replace one
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widget with the next. People power is the greatest
resource that we have, as Commissioner Dougherty said;
we have to understand that and we probably have to
make that argument a little more strongly. I have to
do that; that's my job, and I'll do it.
With that being said, that's going to be the
last word on that. We're going to hold in abeyance --
MR. SANTARELLI: Mr. Chairman, excuse me, just
one thing I wanted to note for the record. With
respect to Resolution 16-008, Vice Chairman Nash had
previously notified me that he would be abstaining,
and he did abstain in the Finance Committee. I just
wanted to make sure that his abstention in Number
16-008, ‘Sustainability and Resource Efficiency
Consulting Services,’ is noted for the record.
CHAIRMAN BOYER: Thank you, no problem.
We're now going to hold in abeyance the
Delaware River Port Authority Board meeting and
convene the PATCO Board meeting.
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(Whereupon, the meeting ended with a Motion to
adjourn both DRPA and PATCO Board meetings on
Wednesday, January 20, 2016 at 11:10 a.m.)
Respectfully Submitted,
Raymond J. SantarelliGeneral Counsel andCorporate Secretary
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C E R T I F I C A T E
This is to certify that the attached
proceedings before the Delaware River Port Authority
on January 20, 2016, were held as herein appears, and
that this is the original transcript thereof for the
file of the Authority.
_________________________Tom BowmanFREE STATE REPORTING, INC.
DRPA MONTHLY LIST OFPREVIOUSLY APPROVED
MONTHLY LIST OF PAYMENTS
DRPA MONTHLY LIST OFPREVIOUSLY APPROVED
PURCHASE ORDERS & CONTRACTS
DRPA MONTHLY LIST OF PREVIOUSLY APPROVED PURCHASE ORDER CONTRACTS - JANUARY 2016
Purchase Order Number Item Resolution
(D=DRPA)
Vendor Name Item Description Net Order Value
4500000402 1 25KTHRES 100501 W.B. MASON CO. INC OFFICE SUPPLIES $200.00
4500000402 $200.00
4500000406 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $200.00
4500000406 $200.00
4500000416 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $1,200.00
4500000416 $1,200.00
4500000417 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $2,000.00
4500000417 $2,000.00
4500000419 1 25KTHRES 100085 CAMDEN COMPUTERS, LLC COMP ACCESS./SUPP. $2,500.00
4500000419 $2,500.00
4500000420 1 25KTHRES 100472 TRANSCORE LP MAINT/REPAIR-ELECT. $437.29
4500000420 2 25KTHRES 100472 TRANSCORE LP MAINT/REPAIR-ELECT. $83.72
4500000420 3 25KTHRES 100472 TRANSCORE LP MAINT/REPAIR-ELECT. $15.53
4500000420 $536.54
4500000421 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $800.00
4500000421 $800.00
4500000422 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $500.00
4500000422 $500.00
4500000423 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $700.00
4500000423 $700.00
4500000425 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $180.00
4500000425 $180.00
4500000433 1 25KTHRES 100837 DELL MARKETING L.P. COMP ACCESS./SUPP. $10,000.00
4500000433 $10,000.00
4500000434 1 25KTHRES 101281 GRAYBAR COMP ACCESS./SUPP. $5,000.00
4500000434 $5,000.00
4500000436 1 25KTHRES 100169 EPLUS TECHNOLOGY, INC. COMP ACCESS./SUPP. $10,000.00
4500000436 $10,000.00
4500000437 1 25KTHRES 100530 SHI INTERNATIONAL CORP COMP ACCESS./SUPP. $5,000.00
4500000437 $5,000.00
4500000454 1 25KTHRES 100530 SHI INTERNATIONAL CORP DATA PROC SRVS & SW $9,682.00
4500000454 $9,682.00
4500000456 1 25KTHRES 100169 EPLUS TECHNOLOGY, INC. COMP HW/PERIPH-MICRO $2,117.00
4500000456 $2,117.00
4500000457 1 25KTHRES 100530 SHI INTERNATIONAL CORP DATA PROC SRVS & SW $2,705.00
4500000457 $2,705.00
4500000459 1 DRPA-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $900.00
4500000459 $900.00
4500000462 1 DRPA-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $500.00
4500000462 $500.00
4500000473 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $400.00
4500000473 $400.00
4500000494 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $2,000.00
4500000494 $2,000.00
4500000514 1 D-15-135 101190 TRI-M GROUP LLC HVAC $16,280.00
4500000514 $16,280.00
4500000515 1 D-15-135 101190 TRI-M GROUP LLC TRAFFIC CTRL DEVICES $15,672.00
4500000515 $15,672.00
4500000546 1 25KTHRES 100870 ESRI INC. DATA PROC SRVS & SW $400.00
4500000546 $400.00
4500000547 1 25KTHRES 100497 VISUAL COMPUTER SOLUTIONS, INC. DATA PROC SRVS & SW $5,864.94
4500000547 $5,864.94
4500000549 1 25KTHRES 101309 PITNEY BOWES INC OFFICE EQUIPMENT $144.00
4500000549 2 25KTHRES 101309 PITNEY BOWES INC OFFICE EQUIPMENT $720.00
4500000549 $864.00
4500000559 1 25KTHRES 100741 ASSA ABLOY ENTRANCE SYSTEMS US INC. MAINT/REPAIR-BLDG $662.00
4500000559 $662.00
4500000565 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $500.00
4500000565 $500.00
4500000566 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $1,000.00
4500000566 $1,000.00
4500000567 1 25KTHRES 100059 ATLANTIC TACTICAL CLOTHING POLICE UNI $68.40
4500000567 2 25KTHRES 100059 ATLANTIC TACTICAL CLOTHING POLICE UNI $68.40
4500000567 3 25KTHRES 100059 ATLANTIC TACTICAL CLOTHING POLICE UNI $68.40
4500000567 4 25KTHRES 100059 ATLANTIC TACTICAL CLOTHING POLICE UNI $68.40
4500000567 5 25KTHRES 100059 ATLANTIC TACTICAL CLOTHING POLICE UNI $68.40
4500000567 6 25KTHRES 100059 ATLANTIC TACTICAL CLOTHING POLICE UNI $136.80
4500000567 7 25KTHRES 100059 ATLANTIC TACTICAL CLOTHING POLICE UNI $136.80
4500000567 $615.60
4500000568 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $400.00
4500000568 $400.00
4500000581 1 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $88.20
4500000581 1 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $88.20
4500000581 1 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $220.50
4500000581 1 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $44.10
4500000581 2 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $88.20
4500000581 2 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $88.20
4500000581 2 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $220.50
4500000581 2 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $44.10
4500000581 3 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $42.00
DRPA MONTHLY LIST OF PREVIOUSLY APPROVED PURCHASE ORDER CONTRACTS - JANUARY 2016
Purchase Order Number Item Resolution
(D=DRPA)
Vendor Name Item Description Net Order Value
4500000581 3 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $42.00
4500000581 3 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $105.00
4500000581 3 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $21.00
4500000581 4 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $54.30
4500000581 4 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $54.30
4500000581 4 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $135.75
4500000581 4 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $27.15
4500000581 5 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $38.40
4500000581 5 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $38.40
4500000581 5 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $96.00
4500000581 5 25KTHRES 100059 ATLANTIC TACTICAL POLICE EQP AND SUPP $19.20
4500000581 $1,555.50
4500000586 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $800.00
4500000586 $800.00
4500000587 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $450.00
4500000587 $450.00
4500000588 1 25KTHRES 100187 GENERAL SALES ADMINISTRATION AUTO/RELATED TRANSPO $640.00
4500000588 2 25KTHRES 100187 GENERAL SALES ADMINISTRATION AUTO/RELATED TRANSPO $640.00
4500000588 $1,280.00
4500000596 1 D-15-133 100501 W.B. MASON CO. INC OFFICE SUPPLIES $600.00
4500000596 $600.00
4500000600 1 25KTHRES 100411 SCHNEIDER ELECTRIC BUILDINGS AMERIC COMP HW/PERIPH-MICRO $1,980.00
4500000600 2 25KTHRES 100411 SCHNEIDER ELECTRIC BUILDINGS AMERIC COMP HW/PERIPH-MICRO $4,920.00
4500000600 3 25KTHRES 100411 SCHNEIDER ELECTRIC BUILDINGS AMERIC COMP HW/PERIPH-MICRO $920.00
4500000600 4 25KTHRES 100411 SCHNEIDER ELECTRIC BUILDINGS AMERIC COMP HW/PERIPH-MICRO $1,084.80
4500000600 5 25KTHRES 100411 SCHNEIDER ELECTRIC BUILDINGS AMERIC COMP HW/PERIPH-MICRO $800.00
4500000600 6 25KTHRES 100411 SCHNEIDER ELECTRIC BUILDINGS AMERIC COMP HW/PERIPH-MICRO $96.00
4500000600 7 25KTHRES 100411 SCHNEIDER ELECTRIC BUILDINGS AMERIC COMP HW/PERIPH-MICRO $96.00
4500000600 8 25KTHRES 100411 SCHNEIDER ELECTRIC BUILDINGS AMERIC COMP HW/PERIPH-MICRO $80.00
4500000600 $9,976.80
4500000605 1 25KTHRES 100127 DAVIDHEISER'S SPEEDOMETER REPAIR IN POLICE EQP AND SUPP $375.00
4500000605 2 25KTHRES 100127 DAVIDHEISER'S SPEEDOMETER REPAIR IN POLICE EQP AND SUPP $375.00
4500000605 3 25KTHRES 100127 DAVIDHEISER'S SPEEDOMETER REPAIR IN POLICE EQP AND SUPP $375.00
4500000605 4 25KTHRES 100127 DAVIDHEISER'S SPEEDOMETER REPAIR IN POLICE EQP AND SUPP $375.00
4500000605 $1,500.00
2015 Third Quarter Financials
Restricted Funds Restricted Funds September 30, 2015 December 31 2014
Capital Project Revenue Maintenance Bond Service Bond Reserve General Combined Combined
Fund Funds Fund Fund Funds Funds Fund Total Total
Assets
Current Assets
Cash and cash equivalents 1,563,396$ 28,193,441$ 29,756,836$ 31,048,925$
Investments 1,057,000 479,262,239 480,319,239 434,116,036
Accounts receivable, net of allowance for uncollectibles 4,307,843 12,304,340 16,612,183 9,136,830
Accrued interest receivable - 299,718 299,718 425,709
Transit system and storeroom inventories 363,228 5,553,203 5,916,430 5,999,891
Economic development loans - current - - 3,773,988
Prepaid expenses 2,816,843 1,347,722 4,164,566 5,253,256
Restricted assets -
Cash and cash equivalents 536,831 2,178,814 2,715,645 3,247,038
Investments 15,076,264 13,913,077 4,836,880 50,242,582 136,672,774 220,741,578 240,692,468
Accrued interest receivable 3,605 3,499 7,104 3,605
Total current assets -$ 15,616,700$ 26,200,201$ 4,836,880$ 50,242,582$ 136,672,774$ 526,964,162$ 760,533,299$ 733,697,747$
Noncurrent Assets
Restricted investments for capital projects 170,771,285 170,771,285 239,730,418
Capital assets 2,229,729,351 25,000 2,229,754,351 2,127,256,648
Accumulated Depreciation 822,270,970 - 822,270,970 779,236,228
Total capital assets, net of accumulated depreciation 1,407,458,381$ -$ -$ -$ -$ -$ 25,000$ 1,407,483,381$ 1,348,020,421$
Other
Economic development loans, net of allowance for uncollectibles 14,369,342 14,369,342 14,169,289
Debt insurance costs, net of amortization 961,732 258,329 1,220,061 1,295,393
Total other assets 961,732 14,627,671 15,589,403 15,464,682
Total noncurrent assets 1,408,420,113$ 170,771,285$ 14,652,671$ 1,593,844,069$ 1,603,215,520$
Total assets 1,408,420,113$ 186,387,985$ 26,200,201$ 4,836,880$ 50,242,582$ 136,672,774$ 541,616,833$ 2,354,377,368$ 2,336,913,267$
Deferred Outflows of Resources
Accumulated decrease in fair value of hedging derivatives 116,424,408 - 116,424,408 116,424,408
Loss on refunding of debt 6,848,125 3,852,806 10,700,930 12,339,216
Total deferred outflows of resources 123,272,533$ 3,852,806$ 127,125,339$ 128,763,624$
Liabilities
Current Liabilities
Accounts payable 0 0
Retained amounts on contracts 61,909 13,627,858 13,689,766 10,389,689
Other 10,104,027 11,215,847 21,319,874 27,405,657
Accrued liabilities -
Claims and judgments 131,215 500,945 632,160 721,000
Self-insurance 980,758 1,006,952 1,987,710 2,000,000
Pension 184,129 2,212,814 2,396,943 2,660,421
Sick and vacation leave benefits - - 975,000
Other 69,044.90 891,028 960,073 1,484,434
Unearned revenue 762,340 2,027,649.71 2,789,989 4,420,774
Liabilities payable from restricted assets - -
Accrued interest payable 12,023,550 - 12,023,550 24,284,937
Bonds payable - current 40,035,000 9,975,000 50,010,000 47,385,000
Total current liabilities 40,035,000$ -$ 12,293,421$ -$ 12,023,550$ -$ 41,458,094$ 105,810,066$ 121,726,912$
Noncurrent Liabilities
Accrued liabilities
Claims and judgments 160,234.97 1,537,216 1,697,451 1,935,732
Self-insurance 1,471,136.57 1,095,992 2,567,129 2,583,412
Sick and vacation leave benefits 2,642,595 1,209,258 3,851,852 2,921,895
Other postemployment benefits 21,174,955 10,269,503 31,444,459 31,445,459
Unearned revenue 975,658 2,121,665 3,097,323 4,908,438
Premium payment payable - derivative companion instrument 29,335,455 - - 29,335,455 29,335,455
Derivative instrument - interest rate swap 116,489,556 - 692,191 - 117,181,747 117,181,747
Bonds payable, net of unamortized discounts and premiums 1,342,362,837 - 171,323,788.77 1,513,686,626 1,565,792,844
Total noncurrent liabilities 1,488,187,849$ 26,424,579$ 692,191$ 187,557,423$ 1,702,862,042$ 1,756,104,983$
Total liabilities 1,528,222,849$ 38,718,001$ 12,023,550$ 692,191$ 229,015,517$ 1,808,672,108$ 1,877,831,895$
Net Position
Unrestricted 316,429,122 486,417,613 215,003,702
Net investment in capital assets 170,771,285 25,000 170,796,285 174,762,294
Restricted 3,469,797 15,616,700 (12,517,800) 4,836,880 38,219,032 135,980,583 15,616,700 198,079,000
Total net position 3,469,797$ 186,387,985$ (12,517,800)$ 4,836,880$ 38,219,032$ 135,980,583$ 316,454,122$ 672,830,599$ 587,844,996$
The accompanying notes to the combined financial statements are an integral part of these statements.
DELAWARE RIVER PORT AUTHORITY
BALANCE SHEET
September 30, 2015UNAUDITED
Page 1
9/30/2015 9/30/2014 2015 2014
Operating Revenues
Bridges
Tolls (Schedule 4) 229,725$ 223,125$ 82,004$ 80,308$
Other operating revenues (including Riverlink Ferry) 5,167 6,366 1,623 1,063
Total bridge operating revenues 234,893 229,491 83,626 81,371
Transit system
Passenger fares 18,533 18,267 6,355 6,142
Other operating revenues 1,093 1,503 396 785
Total transit system operating revenues 19,626 19,770 6,751 6,927
Total operating revenues 254,519 249,261 90,377 88,298
Operating Expenses
Bridge Operations 35,460 33,330 35,460 10,872
Transit System 37,483 25,367 13,296 201
Community impact 2,836 2,809 945 936
General and administration 31,672 31,007 11,098 10,100
Port of Philadelphia and Camden 30 (48) 6 (73)
Depreciation - DRPA 27,296 32,536 9,099 10,678
Depreciation - PATCO 15,739 11,919 5,246 6,440
Total operating expenses 150,517 136,919 75,150 39,153
Operating Income 104,002$ 112,342 15,228 49,145
Nonoperating Revenues (Expenses)
Investment Income (Schedule 3) 6,042 4,586 1,618 1,518
Change in fair value of derivative instruments (Note 4) - - - -
6,042 4,586 1,618 1,518
Interest On Funded Debt (Note 12)
Port District Project bonds, Series 1999 (1,841) (2,122) (614) (707)
Amortization Expense Port District Project bonds, Series 1999 (Note 12) (46) (46) (15) (15)
Refunding Revenue bonds, Series 2008 (567) (635) (177) (206)
1995 Rev. Bond Swap Payments (Related to 2008 A, & B Series) (10,756) (12,818) (4,793) (3,845)
Refunding Revenue bonds, Series A, B & C 2010 (477) (525) (150) (169)
1999 Rev. Bond Swap Payments (Related to 2010 A, B, & C Series) (13,308) (14,202) (5,930) (4,751)
Revenue bonds, Series D 2010 (11,591) (11,591) (3,864) (3,864)
Amortization Expense Revenue bonds, Series 2010 (Note 12) (30) - (10) -
Port District Project Refunding Bonds, Series 2012 (3,889) (4,006) (1,296) (1,335)
Revenue bonds, Series 2013 (17,316) (17,316) (5,772) (5,772)
(59,820) (63,259) (22,621) (20,665)
Economic development activities (1,330) (210) (247) -
Other nonoperating revenues 1,893 434 1,886 9
Other grant revenues 1,414 2,244 560 1,432
Bond issuance costs
Other nonoperating expenses (510) (140) (386) (139)
Total nonoperating revenues (expenses) (52,311) (56,346) (19,190) (17,844)
Income before capital contributions 51,691 55,996 (3,963) 31,300
Capital Contributions
Federal and state capital improvement grants 33,295 2,000$ 7,327$ 450$
Change in net position 84,986 57,996 3,363 31,750
Net Position, January 1 587,845 511,389 587,845 511,389
Net Position, September 30 672,831$ 569,386$ 591,208$ 543,140$
The accompanying notes to the combined financial statements are an integral part of these statements.
Period Ending Third Quarter
DELAWARE RIVER PORT AUTHORITY
For the Period Ended September 30, 2015 and 2014
Combined Statements of Revenues, Expenses and Changes in Net Position
September 30, 2015
(amounts expressed in thousands)
Page 2
9 Months 9 Months
OPERATING ACTIVITIES: 2015 2014
Operating revenues in excess of expenses 104,002$ 112,342$
Other nonoperating revenues and expenses 2,797 2,538
Adjustments to reconcile operating and non operating income
to net cash provided by operating activities:
Depreciation 43,035 44,455
Economic development activities (1,330) (210)
Changes in assets and liabilities which provided (used) cash:
Accounts receivable (7,475) (7,155)
Economic development loans - Net 3,574 563
Derivative Instruments - -
Transit system and stores inventory 83 245
Prepaid expenses and other assets 1,089 230
Accounts payable (2,786) 11,730
Accrued liabilities and interest (13,451) 49
Unearned revenue (3,442) 214
Accrued interest receivable 122 (2,815)
Other and loss on refunding 1,714 608
Net cash provided by operating activities 127,932$ 162,795$
CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (102,498) (110,639)
Cash provided by capital grants 33,295 2,000
Repayment of funded debt (49,481) (40,815)
Interest paid (59,820) (63,259)
Proceeds from facility disposals - -
Net cash used for capital and related financing activities (178,504)$ (212,714)$
NET DECREASE IN CASH BEFORE INVESTING ACTIVITIES (50,573)$ (49,919)$
INVESTMENT ACTIVITIES:
Unrestricted:
Net Proceeds from sale (purchases) of investments (26,252) 78,595
Decrease (Increase) in investments (26,252)$ 78,595$
Restricted:
Net Proceeds from sale (purchases) of investments 68,959 (30,436)
Decrease in investments 68,959$ (30,436)$
Change in fair value of Derivative instruments -
Receipts of interest income 6,042 4,586
Net cash provided by investing activities 48,749$ 52,745$
NET INCREASE IN CASH (1,823)$ 2,826$
CASH, BEGINNING OF YEAR 34,296$ 30,760$
CASH, END OF PERIOD 32,472$ 29,886$
CASH AT JUNE 30
Unrestricted 29,757$ 29,349$
Restricted 2,716$ 537$
32,472$ 29,886$
(amounts expressed in thousands)
For the period ended September 30 (Unaudited)
CONSOLIDATED STATEMENT OF CASH FLOWS
Page 3
Assets September 30, 2015
Investments 10,758$
Total current assets 10,758
Net Position
Held in trust for retiree health benefits 10,758
Total net position 10,758$
The accompanying notes to combined financial statements are an integral part of this statement.
DELAWARE RIVER PORT AUTHORITY
Other Postemployment Benefits Trust
Combined Statement of Trust Net Position Available for Benefits
For the Period Ended September 30, 2015
(amounts expressed in thousands)
Page 4
Additions 9/30/2015
Employer contributions
Investment income 2
Total additions 2
Deductions
Benefit payments -
Administrative expenses 24
Total deductions 24
Increase in net position (22)
Net Position, January 1 10,780
Net Position, September 30 10,758$
The accompanying notes to combined financial statements are an integral part of this statement.
(amounts expressed in thousands)
DELAWARE RIVER PORT AUTHORITY
Unaudited
Other Postemployment Benefits Trust
Combined Statement of Changes in Trust Net Position
For the Period Ended September 30, 2015
Page 5
Combined Supplemental Schedule of Changes in Fund Net Position Information by Fund
For the Period Ended September 30, 2015
(amounts expressed in thousands)
Restricted Restricted Restricted
Maintenance Debt Service Combined
Capital Revenue Reserve General Debt Service Reserve Project
Fund Fund Fund Fund Funds Funds Funds Total Total
Net Position (Deficiency), January 1 (93,402)$ (19,783)$ 4,689$ 257,953$ 48,201$ 133,755$ 256,432$ 587,845$ 511,389$
Revenues and Expenses
Operating revenues 234,820 19,698 254,519 330,882
Operating expenses (43,035) (34,491) (41,318) (118,844) (161,955)
General administration expenses (31,633) (39) (31,672) (41,347)
Investment income 273 148 3,256 1 2,225 138 6,042 8,479
Interest expense (511) 893 (60,203) (59,820) (78,377)
Economic development activities (1,330) (1,330) (2,401)
Other nonoperating revenues (expenses) (234) 1,617 1,383 3,437
Other grant revenues 1,414 1,414 1,307
Total revenues and expenses (43,546) 168,734 148 (15,808) (60,201) 2,225 138 51,691 60,025
Government Contributions for Capital Improvements,
Additions and Other Projects 33,295 33,295 16,431
Interfund Transfers and Payments (494)
Bond service (65,740) (31,864) 97,604
Funds free and clear of any lien or pledge (95,730) 95,730
Funds for permitted capital expenditures 69,096 (69,096)
Retirement of bonds 37,920 9,465 (47,385)
Funds for permitted port projects 1,085 - (1,085)
Capital additions 102,498 (102,498) -
Net equity swap transfers
Total interfund transfers and payments 140,418 (161,470) 41,015 50,219 (70,181)
Net Position (Deficiency), September 30 3,470$ (12,517,800.14) 4,837$ 316,454$ 38,219$ 135,981$ 186,388$ 672,831$ 587,845$
12/31/2014
Page 6
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 7
Note 1. Summary of Significant Accounting Policies
Description of Operations: The Delaware River Port Authority (the “Authority”) is a public corporateinstrumentality of the Commonwealth of Pennsylvania (the “Commonwealth”) and the State of NewJersey (the “State”), created with the consent of Congress by compact legislation between theCommonwealth and the State. The Authority has no stockholders or equity holders. The Authority isvested with the ownership, control, operation, and collection of tolls and revenues of certain bridgesspanning the Delaware River; namely, the Benjamin Franklin, Walt Whitman, Commodore Barry, andBetsy Ross bridges. The Authority has also constructed, and owns, a high-speed transit system that isoperated by the Port Authority Transit Corporation (“PATCO”). The transit system operates betweenPhiladelphia, Pennsylvania and Lindenwold, New Jersey.
The costs of providing facilities and services to the general public on a continuing basis are recoveredprimarily in the form of tolls and fares. The Authority is a member of the E-ZPass Interagency Group, thelargest interoperable Electronic Toll Collection System in the world, comprised of thirty-seven (37)agencies in sixteen (16) states. Through September 30, 2015, customer participation in the E-ZPasselectronic toll collection process grew was over seventy percent (70.8%) of its toll collection activity duringrush hour periods. Toll revenues collected through E-ZPass now exceed sixty-nine percent (69.2%) oftotal toll revenues. The Office of the Chief Operating Officer manages the RiverLink Ferry System, whichruns daily between Penn’s Landing in Philadelphia and the Camden Waterfront during its operatingseason, as well as the Authority’s eleven-story office building in Camden, New Jersey.
Basis of Presentation: The combined financial statements of the Authority have been prepared inconformity with accounting principles generally accepted in the United States of America, as applied togovernmental units. The Governmental Accounting Standards Board (“GASB”) is the accepted standardsetting body for establishing governmental accounting and financial reporting principles.
As part of the Authority’s combined financial statements, two funds are maintained: a proprietary fund(enterprise fund) and a fiduciary fund (other employee benefit trust fund). The focus of enterprise funds isthe measurement of economic resources, that is, the determination of operating income, changes in netposition (or cost recovery), financial position, and cash flows. The focus of fiduciary funds is also themeasurement of economic resources.
The enterprise fund is maintained on the accrual basis of accounting. Enterprise funds account foractivities (i) that are financed with debt that is secured solely by a pledge of the net revenues from feesand charges of the activity; or (ii) that are required by law or regulations that the activity’s cost of providingservices, including capital cost (such as depreciation or debt service), be recovered with fees andcharges, rather than with taxes or similar revenues; or (iii) that the pricing policies of the activity establishfees and charges designed to recover its costs, including capital costs (such as depreciation or debtservice). Under this method, revenues are recorded when earned and expenses are recorded when therelated liability is incurred.
The fiduciary fund is also maintained on the accrual basis of accounting. The fiduciary fund accounts forthe recording and accumulation of other postemployment benefit resources, which are held in trust for theexclusive benefit of the Authority’s retirees. This fund is referred to as the “Other PostemploymentBenefits (“OPEB”) Trust.
Cash and Cash Equivalents: The Authority considers all highly liquid investments with a maturity of threemonths or less when purchased to be cash equivalents (Note 2). In addition, according to the variousIndentures of Trust, which govern the flow and accounting of the Authority’s financial resources, certainaccounts are required to be maintained in order to comply with the provisions of the Indentures of Trust.For the accounts that are restricted, the Authority has recorded the applicable cash and cash equivalentsas restricted on the combined financial statements (Note 11).
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 8
Note 1. Summary of Significant Accounting Policies (Continued)
Investment in Securities: Investments are stated at fair value, generally based on quoted market prices.Certain investments are maintained in connection with the Authority’s bonded debt (Notes 3 and 12) andOPEB Trust. Likewise, as with cash and cash equivalents, the accounts that are restricted as per thevarious Indentures of Trust have been recorded as restricted investments on the combined financialstatements (Note 11).
Accounts Receivable: The Authority establishes a provision for the estimated amount of uncollectibleaccounts based upon periodic analysis of collection history.
Transit System Inventory: Transit system inventory, consisting principally of spare parts for maintenanceof transit system facilities, is stated at the lower of cost (first-in, first-out method) or market.
Debt Insurance Costs, Bond Premiums, Bond Discounts, and Loss on Refunding: Insurance purchasedas part of the issuance of debt is amortized by the straight-line method from the issue date to maturityand is recorded as a noncurrent asset on the combined statements of net position. Bond premiums anddiscounts are amortized by the effective interest method from the issue date to maturity, and arepresented as an adjustment to the face amount of the bonds. Likewise, a loss on refunding arising fromthe issuance of the revenue bonds and port district project bonds are amortized by the effective interestmethod from the issue date to maturity. The loss on refunding of debt, however, is classified as adeferred outflow of resources on the combined statements of net position.
Investment in Facilities: Investment in facilities is stated at cost, which generally includes expenses forlegal expenses incurred during the construction period. Investment in facilities also includes the costincurred for port-related projects, and improvements, enlargements and betterments to the originalfacilities. Replacements of existing facilities (except for primarily police and certain other vehicles whoseestimated useful life is two years or less) are also recorded at cost. The related costs and accumulateddepreciation of the property replaced are removed from the respective accounts, and any gain or loss ondisposition is credited or charged to non-operating revenues or expenses. Assets capitalizable generallyhave an original cost of five thousand dollars ($5K) or more and a useful life in excess of three years.Depreciation and amortization are provided using the straight-line method over the estimated useful livesof the related assets, including those financed by federal and state contributions (Notes 7 and 14).
Asset lives used in the calculation of depreciation are generally as follows:
Bridges, freeways and tunnels 100 yearsBuildings, stations and certain bridge components 35 - 50 yearsElectrification, signals and communications system 30 - 40 yearsTransit cars, machinery and equipment 10 - 25 yearsComputer equipment, automobiles and other equipment 3 - 10 years
Maintenance and Repairs: Maintenance and repair costs considered necessary to maintain bridgefacilities in good operating condition are charged to operations as incurred.
Self-insurance: The Authority provides for the uninsured portion of potential public liability and workers’compensation claims through self-insurance programs and charges current operations for estimatedclaims to be paid (Note 15).
Economic Development Activities: The Authority establishes loan loss provisions for economicdevelopment loans receivable, based upon collection history and analysis of creditor’s ability to pay. TheAuthority has established a loss reserve in the amount of $1,345 as of September 30, 2015 and 2014 forits economic development loans outstanding.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 9
Note 1. Summary of Significant Accounting Policies (Continued)
Net Position: Net position is classified in the following three components:
Net Investment in Capital Assets: This component of net position consists of capital assets, net ofaccumulated depreciation, reduced, by the outstanding balances of any bonds, notes or otherborrowings that are attributable to the acquisition, construction, or improvement of those assets. Ifthere are significant unspent related debt proceeds at year-end, the portion of the debt attributable tothe unspent proceeds is not included in the calculation of net investment in capital assets. Rather,that portion of the debt is included in the same net position component as the unspent proceeds.
Restricted: This component of net position consists of external constraints imposed by creditors (suchas debt covenants), grantors, contributors, laws or regulations of other governments, or constraintsimposed by law through constitutional provisions or enabling legislation, that restricts the use of netposition.
Unrestricted: This component of net position consists of a net position that does not meet thedefinition of “restricted” or “net investment in capital assets.” This component includes net positionthat may be allocated for specific purposes by the Board. A deficiency will require future funding.
Operating and Non-operating Revenues and Expenses: Operating revenues include all revenues derivedfrom facility charges (i.e., toll revenues, which include E-ZPass revenues), PATCO operations (passengerfare, advertising and parking), and other revenue sources. Non-operating revenues principally consist ofinterest income earned on various interest-bearing accounts and on investments in debt securities.
Operating expenses include expenses associated with the operation, maintenance, and repair of thebridges, PATCO, and Ferry operations, and general administrative expenses. Non-operating expensesprincipally include expenses attributable to the Authority’s interest on funded debt and economicdevelopment activities.
When both restricted and unrestricted resources are available for use, it is the Authority’s policy to userestricted resources first, then unrestricted resources as they are needed.
Debt Management: Total outstanding bond debt reflected on the statements of net position is net ofunamortized bond discounts and premiums (Note 12). The Authority presently has two active interestrate hedge (swap) agreements (derivative instruments) with TD Bank Securities and Wells Fargo tohedge interest rates on a portion of its outstanding long-term debt. (UBS was replaced as thecounterparty on the two swaps in July 2014) (Note 4).
Derivative Instruments and the Related Companion Instruments: The Authority has entered into twointerest rate swap agreements with the Bank of America, N.A. for the primary purposes of investing andfor the aforementioned purpose of hedging interest rates on its outstanding long-term debt. Inaccordance with Governmental Accounting Standards Board Statement No. 53, Accounting and FinancialReporting for Derivative Instruments, all activity related to the interest rate swap agreements has beenrecorded on the combined financial statements and is further detailed in Note 4.
Budget: In accordance with Section 5.15 of the 1998 Revenue Refunding Bonds Indenture of Trust andits Supplemental Indentures and Section 5.07 of the 1999 and 2012 Port District Project Bond Indenturesof Trust, the Authority must annually adopt an Annual Budget on or before December 31 for the ensuingyear. Section 5.15 of the 1998 Revenue Refunding Bond Indenture of Trust requires that the Authority,on or before December 31, in each fiscal year, adopt a final budget for the ensuing fiscal year of (i)operational expenses, (ii) the PATCO Subsidy, (iii) the amount to be deposited to the credit of theMaintenance Reserve Fund, and (iv) the estimated amounts to be deposited into the Debt Service Fund,the Debt Service Reserve Fund, and the Rebate Fund. Each Annual Budget must also contain theAuthority’s projections of revenues for the ensuing fiscal year demonstrating compliance with thecovenant as to facility charges as set forth in Section 5.09 of the Indentures of Trust. On or beforeDecember 31 in each fiscal year, the Authority must file a copy of the Annual Budget for the ensuing fiscalyear with the Trustees.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 10
Note 1. Summary of Significant Accounting Policies (Continued)
Budget (Continued): The Port District Project Bond Indentures require the following: the adopted budgetmust set forth, inter alia, the PATCO Subsidiary, the amount of any operating subsidy paid or payable bythe Authority to or for the account of any other subsidiary of the Authority (including, without limitation, thePort of Philadelphia and Camden) and all other material operating expenses of the Authority payable fromthe General Fund. (See Note 11 for description of funds established under the Trust Indentures.) TheAuthority must also include the debt service payable on the bonds and any additional subordinatedindebtedness during the ensuing fiscal year and all amounts required to be paid by the Authority into theDebt Service Reserve Fund or the Rebate Fund or to any Reserve Fund Credit Facility issuer during theensuing fiscal year. On or before December 31, in each fiscal year, the Authority must file a copy of theAnnual Budget for the ensuing fiscal year with the Trustees and Credit Facility Issuer.
The Authority filed the appropriate budgets as described above to its bond trustees by December 31,2014 and 2013, in compliance with the bond indentures.
The Authority may at any time adopt an amended or supplemental Annual Budget for the remainder ofthe then-current fiscal year, which shall be treated as the Annual Budget under the provisions of theIndentures of Trust. A copy of any amended or supplemental Annual Budget must be promptly filed withthe Trustee.
Interfunds: Interfund receivables/payables represent amounts that are owed, other than charges forgoods and services rendered, to/from a particular fund. These receivables/payables are eliminatedduring the aggregation process.
Use of Estimates: The preparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assetsand liabilities at the date of the combined financial statements and the reported amounts of revenues andexpenses during the reporting period. Actual results could differ from those estimates.
Income Taxes: The Authority is a public corporate instrumentality of the State of New Jersey and theCommonwealth of Pennsylvania, and is described in its amended governing Compact, has been “deemedto be exercising an essential government function in effectuating such purposes,” and therefore is exemptfrom income taxes pursuant to the Internal Revenue Code (Section 115).
Note 2. Cash and Cash Equivalents
Custodial Credit Risk Related to Deposits: Custodial credit risk is the risk that, in the event of a bankfailure, the Authority’s deposits might not be recovered. The Authority does not have a deposit policy forcustodial credit risk. As of December 31, 2014, the Authority’s bank balance of $52,130 (includingcertificate of deposit of $13,622 classified as investments in the statements of net position), was exposedto custodial credit risk as follows:
2014
Uninsured and uncollateralized $ 49,982
Uninsured and collateralized (collateral held by
bank's department or agent, but not in the
Authority's name) $ 685
Also, included in the Authority’s December 31, 2014 bank balance of $52,130 is a $25,000 certificate ofdeposit. Since the certificate of deposit is invested for a term of seven days, the Authority has reported itas “cash and cash equivalents” on the combined statements of net position and cash flows as ofDecember 31, 2014.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 11
Note 3. Investment in Securities
Excluding the investments of the OPEB Trust, the Authority’s investments in various securities aremaintained for specified funds in accordance with the provisions of the Indenture of Trust adopted as ofJuly 1, 1998.
Custodial Credit Risk Related to Investments: For an investment, custodial credit risk is the risk that, inthe event of the failure of the counterparty, the Authority will not be able to recover the value of itsinvestments or collateral securities that are in possession of an outside party. Of the Authority’sinvestments at December 31, 2014 $900,916, consisted of investments in asset backed securities,commercial paper, corporate bonds and notes, mortgage pass-through securities, municipal bonds,repurchase agreements, U.S. federal agency notes and bonds, and U.S. government treasuries, areuninsured, not registered in the name of the Authority, and held by the counterparty’s trust department oragent but not in the Authority’s name.
As of December 31, 2014, the Authority had the following investments:
The weighted average maturity of the Authority’s investment portfolio was 8.85 months as of December31, 2014.
The short-term investments listed above consist of money market funds. Since it is the policy of theAuthority to utilize these funds for the purchase of investments with longer maturities, these amountshave been classified as investments in the statements of net position as opposed to cash and cashequivalents.
Interest Rate Risk: The Authority’s General Fund investment policy limits investment maturities as ameans of managing its exposure to fair value losses arising from increasing interest rates and is asfollows: the average effective duration of the portfolio is not to exceed twenty-four months, and themaximum effective duration of any individual security is not to exceed five years, unless otherwisespecified.
Credit Risk: Investments are purchased in accordance with the 1998 Indenture of Trust and itsSupplemental Indenture and General Fund investment parameters and generally include U.S.government obligations, money market funds, obligations of U.S. agencies or instrumentalities, andobligations of public agencies or municipalities rated in either of the two highest rating categories byStandard & Poor’s Ratings or Moody’s Investors Services. In accordance with the 1998 Indenture ofTrust and its Supplemental Indentures, the Authority invests in corporate bonds and commercial paperrated A-1 by Standard and Poor’s Corporation. Guaranteed Income Contracts are collateralized by U.S.government and agency securities, and debt obligations having a rating in the highest rating categoryfrom Moody’s Investors Service or Standard and Poor’s Rating Services.
Investment Maturities 2014
Asset back securities 337.48 months average 193$
Commercial paper 6.40 months average 50,092
Corporate bonds and notes 38.98 months average 44,714
Mortgage pass-through securities 216.95 months average
Municipal bonds 26.73 months average 110
Repurchase agreements daily 1,001
Short-term investments 2.48 months average 746,452
U.S. federal agency notes and bonds 213.02 months average 11,751
U.S. government treasuries 31.86 months average 46,603
900,916
Certificates of deposits held at banks 13,622
Total 914,538$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 12
Note 3. Investment in Securities (Continued)
Credit Risk (Continued): On February 20, 2013, the Authority’s Board approved Resolution 13-034,adopting a new comprehensive General Fund investment policy, which revised and refined its originalinvestment policy. The policy redefined the approved, and non-approved, investment vehicles, in whichits existing investment management firms can invest the Authority’s funds. This policy became effectiveJuly 1, 2013.
As of December 31, 2014, the following are the actual ratings by Standard & Poor’s:
As of December 31, 2014, the following are the actual ratings by Moody’s:
Concentration of Credit Risk: The Authority’s investment policy on the concentration of credit risk for itsGeneral Fund investments states that no limitations exist on the purchase of investments in obligations ofthe U.S. government and U.S. federal agencies since they are fully guaranteed by the U.S. government.
Asset Corporate U.S. Federal US
Actual Backed Commercial Bonds Municipal Repurchase Agency Notes Government
Rating Securities Paper and Notes Bonds Agreements and Bonds Treasuries
AAA - - 1,189$ - - - 350$
AA+ - 50,092$ 2,097 110$ - 10,789$ 45,303
AA 4$ - 3,038 - - - -
AA1 - - 7,047 - - - -
A+ - - 9,628 - - - -
A - - 9,180 - - - -
A1 - - 9,340 - - - -
BBB+ - - 1,738 - - - -
CC 56 - - - - - -
D 133 - - - - - -
Unrated - - 1,457 - 1,001$ 962 950
193$ 50,092$ 44,714$ 110$ 1,001$ 11,751$ 46,603$
Asset Corporate U.S. Federal US
Actual Backed Commercial Bonds Municipal Repurchase Agency Notes Government
Rating Securities Paper and Notes Bonds Agreements and Bonds Treasuries
Aaa - - 1,488$ - - 10,789$ 45,304$
Aa1 - - 1,517 - - - -
Aa2 - - 5,764 - - - -
Aa3 - 50,092$ 4,472 - - - -
A - - 497 - - - -
A1 - - 6,411 - - - -
A2 4$ - 10,256 110$ - - -
A3 - - 6,675 - - - -
Baa1 - - 524 - - - -
Baa2 - - 4,605 - - - -
Bbb - - 229 - - - -
C 189 - - - - - -
Unrated - - 2,276 - 1,001$ 962 1,299
193$ 50,092$ 44,714$ 110$ 1,001$ 11,751$ 46,603$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 13
Note 3. Investment in Securities (Continued)
Concentration of Credit Risk (Continued): For the purchase of investments in obligations of all otherissuers, total investments held from any one issuer shall not exceed ten percent (10%) of the aggregatemarket value of the entire portfolio, except for repurchase agreements, which, from any one issuer, shallnot exceed twenty-five percent (25%) of the aggregate market value of the portfolio.
As of September 30, 2015 and December 31, 2014, the Authority had $50,821 and $50,092 ofinvestments in Abbey National N.A. commercial paper, respectively. These investments are held underthe Indentures of Trust (Debt Service Reserve Funds) and represent 6% and 5% of the Authority’s totalinvestments for September 30, 2015 and December 31, 2014.
OPEB Trust:
As of September 30, 2015, the OPEB Trust (Note 10), investments were as follows:
Investment Maturities 2015
Mutual funds - money market 1.00 months average $10,758
Interest Rate Risk: The Authority’s investment policy for the OPEB Trust calls for highly liquid, short-terminvestments. As a result, the fund invests in a variety of high quality money market securities designed toallow the fund to maintain a stable net asset value of $1.00 per share. These instruments includecommercial paper, U.S. government agency notes, certificates of deposit, time deposits, and otherobligations issued by domestic and foreign banks. Such investments in an open-end mutual fund are notsubject to custodial credit risk because their existence is not evidenced by securities that exist in physicalor book entry form.
Credit Risk: As of September 30, 2015, the actual rating by Standard & Poor’s for the mutual fund wasA1+ The credit rating reflects Standard & Poor’s short-term issuer debt rating.
Note 4. Derivative Instruments
In accordance with the requirements of Governmental Accounting Standards Board Statement No. 53,Accounting and Financial Reporting for Derivative Instruments (“GASBS 53”), related to derivativeinstruments, the Authority engaged a financial advisory firm to analyze the effectiveness of the two “cash-flow hedges” (specifically the 1995 and 1999 Revenue Bond swaptions). Both swaptions were found tobe substantially effective. At September 30, 2015 and December 31, 2014, the value of the pay-fixedinterest rate swap (1995 Revenue Bond Swaption) was $52,714. At September 30, 2015 and December31, 2014, the value of the pay-fixed interest rate swap (1999 Revenue Bond Swaption) was $63,710. Thepay-fixed interest rate swaps are classified as deferred outflows of resources on the combined statementof net position, and was $116,424 at September 30, 2015 and December 31, 2014 respectively.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 14
Note 4. Derivative Instruments (Continued)
The fair value balance and notional amounts of derivative instruments outstanding at December 31, 2014and 2013, classified by type, and the changes in fair value of such derivative instruments for the yearended as reported in the 2014 and 2013 combined financial statements are as follows (debit (credit)):
At December 31, 2010, the Authority determined that a portion of the 1999 Revenue Bonds cash flowhedge, pay-fixed interest rate swap no longer met the criteria for effectiveness due to the partial 2010refunding of the 1999 Revenue Bonds; therefore, this cash flow hedge was reclassified as an investmentderivative, with a notional value of $24,595 as of December 31, 2014. The fair values of the interest rateswaptions and swaps are indicative value based on mid-market levels as of the close of business onDecember 31, 2014 and 2013, and were derived from proprietary models based upon well-recognizedfinancial principles and reasonable estimates about relevant future market conditions.
Objective and Terms of Hedging Derivative Instruments: The following table summarizes the objectiveand terms of the Authority’s hedging instruments outstanding at September 30, 2015:
Fair Value at December 31,
Classifi- Classifi-
cation Amount cation Amount Notional
2014 2013 2014 2013 2014 2013
Investment derivatives:
Receive-fixed interest
rate swaption (1999
PDP, Series B, Debt
Service Reserve Fund)
Interest
revenue 161$ (120)$
Derivative
instrument (144)$ (305)$ 10,436$ 10,436$
Receive-fixed interest
rate swaption (1999
Revenue Bonds Debt
Service Reserve Fund)
Interest
revenue 611 (458)
Derivative
instrument (548) (1,159) 39,657 39,657
Pay-fixed interest rate
swap
Interest
revenue 49 (375)
Derivative
instrument (65) (114) 24,595 24,595
Cash flow hedges:
Pay-fixed interest rate
swap (1995 Revenue
Bonds Swaption)
Deferred
outflow (1,006) 24,096
Derivative
instrument (52,714) (51,708) 287,800 304,510
Pay-fixed interest rate
swap (1999 Revenue
Bonds Swaption)
Deferred
outflow (1,100) 28,290
Derivative
instrument (63,710) (62,610) 312,660 331,840
Changes in Fair Value
Notional Effective Maturity
Type Objective Amount Date Date Terms
Pay-fixed interest
rate swap (1995
Revenue Bonds
Swaption)
Hedge of changes
in cash flows of the
2008 Revenue
Refunding Bonds 270,180$ 01/01/06 01/01/26
Pay 5.447%;
receive 66% of
one-month
LIBOR
Pay-fixed interest
rate swap (1999
Revenue Bonds
Swaption)
Hedge of changes
in cash flows of the
2010 Revenue
Refunding Bonds 292,360$ 01/01/10 01/01/26
Pay 5.738%;
receive 66% of
one-month
LIBOR
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 15
Note 4. Derivative Instruments (Continued)
1995 Revenue Bonds Swaption: On May 2, 2001, the Authority entered into the 1995 Revenue BondsSwaption with UBS AG in the initial notional amount of $358,215. Under the 1995 Revenue BondsSwaption, UBS AG had the option, exercisable 120 days preceding January 1, 2006, January 1, 2007,and January 1, 2008, to elect to have the 1995 Revenue Bonds Swaption commence on the January 1next succeeding the exercise of the option. Under the 1995 Revenue Bonds Swaption, (i) UBS AG wasobligated to pay to the Authority $7,144 on January 1, 2006, as an exercise premium amount; (ii) UBS AGis obligated to pay periodic payments (payable monthly) to the Authority based upon a variable rate of66% of the USD-LIBOR-BBA index; and (iii), the Authority is obligated to pay periodic payments (payablemonthly) to UBS AG based upon a fixed rate of 5.447% per annum. The periodic interest rates areapplied to the notional amount of the 1995 Revenue Bonds Swaption, which amortizes annually,commencing January 1, 2007, from its initial notional amount. Only the net difference in the periodicpayments is to be exchanged between the Authority and UBS AG.
The periodic payment obligations of the Authority under the 1995 Revenue Bonds Swaption are securedand payable equally and ratably with Bonds issued under the 1998 Revenue Bond Indenture. Regularlyscheduled periodic payments to be made by the Authority under the 1995 Revenue Bonds Swaption areinsured by Ambac Assurance. In addition to other Events of Default and Termination Events (as definedin the 1995 Revenue Bond Swaption), there exists an Additional Termination Event with respect to theAuthority if the credit rating of Bonds issued under the 1998 Revenue Bond Indenture (without referenceto municipal bond insurance or credit enhancement) falls below “Baa3” with respect to Moody’s InvestorsService (“Moody’s”) or “BBB-” with respect to Standard & Poor’s Ratings Group (“S&P”) or Fitch Ratings(“Fitch”), or the Bonds cease to be rated by one of Moody’s, S&P or Fitch (and such rating agencies arestill in the business of rating obligations such as the Bonds). However, as provided in the 1995 RevenueBond Swaption, so long as no Insurer Credit Event (as defined therein) has occurred, no EarlyTermination Date can be designated unless Ambac Assurance has consented in writing thereto.
In consideration for entering into the 1995 Revenue Bonds Swaption, the Authority received a net up-front, non-refundable option payment in the amount of $22,446 from UBS AG, which has been recordedon the combined financial statements as a noncurrent liability (premium payment payable - derivativecompanion instrument). In accordance with the provisions of GASBS No. 53, this derivative companioninstrument is considered a “borrowing” resulting from the intrinsic value of the swaption at inception.During the option period, interest accretes at the effective rate implied by the cash flows on the borrowingat inception. Once the swaption is exercised, and becomes an active swap, a portion of the swap interestpayments are attributed to principal and interest payments on the borrowing.
On September 3, 2005, UBS AG advised the Authority that it was exercising its option on this swaption asof January 1, 2006. As a result, UBS AG paid the Authority $7,144 on January 3, 2006 as an exercisepremium, which has been recorded as an unearned revenue and is being amortized as interest revenueover the life of the interest rate swap agreement. The Authority made its initial net monthly swap paymentin February 2006.
In July 2015, the Authority executed a “swap novation transaction” wherein UBS AG was replaced as theswap counterparty by TD Bank N.A. . The Authority has been current on all of its net payments duringthe period 2006 to 2014 and it is current on all of its 2015 monthly net swap interest payments to theformer and new swap counterparties which totaled $10,756 as of September 30, 2015.
The ratings of the counterparty (TD Bank) to the 1995 Revenue Bonds Swap by Moody’s, S&P, and Fitchare Aa3,-, AA-, and AA-, respectively, as of September 30, 2015. As of September 30, 2015, the 1995Revenue Bond Swaption had a mark-to-mark value of ($66,766). As of September 30, 2015, the notionalvalue of the swap was $270,180.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 16
Note 4. Derivative Instruments (Continued)
1995 Revenue Bonds Swaption (Continued): The following schedule represents the accretion of interestand amortization of the premium payment payable – derivative companion instrument through the term ofthe interest rate swap agreement, at an effective interest rate of 4.62324%:
ImputedYear Ending Beginning Interest Debt EndingDecember 31, Balance Accrual Payment Balance
2015 11,934$ 552$ (2,226)$ 10,260$2016 10,260 474 (2,072) 8,662
2017 8,662 400 (1,911) 7,1512018 7,151 331 (1,741) 5,7412019 5,741 265 (1,561) 4,4452020-2024 4,445 559 (4,755) 2492025 249 11 (260) -
(See Note 20, Subsequent Events for further information related to the replacement of UBS as swap counterparty on the 1995Revenue Bond Swaps).
1999 Revenue Bonds Swaption: On May 2, 2001, the Authority entered into the 1999 Revenue BondsSwaption with UBS AG in the initial notional amount of $403,035. Under the 1999 Revenue BondsSwaption, UBS AG had the option, exercisable 120 days preceding January 1, 2010, January 1, 2011,and January 1, 2012, to elect to have the 1999 Revenue Bonds Swaption commence on the January 1next succeeding the exercise of the option. Under the 1999 Revenue Bonds Swaption, if exercised, (i)UBS AG is obligated to pay periodic payments (payable monthly) to the Authority based upon a variablerate of 66% of the USD-LIBOR-BBA index, and (ii), the Authority is obliged to pay periodic payments(payable monthly) to UBS AG based upon a fixed rate of 5.738% per annum. The periodic interest ratesare applied to the notional amount of the 1999 Revenue Bonds Swaption, which amortizes annually,commencing January 1, 2011, from its initial notional amount. Only the net difference in the periodicpayments is to be exchanged between the Authority and UBS AG.
Once exercised, the 1999 Revenue Bonds Swaption would continue (unless earlier terminated) throughJanuary 1, 2026. The periodic payment obligations of the Authority under the 1999 Revenue BondsSwaption (if exercised) are secured and payable equally and ratably with Bonds issued under the 1998Revenue Bond indenture. Regularly scheduled periodic payments to be made by the Authority under the1999 Revenue Bonds Swaption are insured by Ambac Assurance. In addition to other Events of Defaultand Termination Events (as defined in the 1999 Revenue Bonds Swaption), there exists an AdditionalTermination Event with respect to the Authority if the credit rating of Bonds issued under the 1998Revenue Bond Indenture (without reference to municipal bond insurance or credit enhancement), fallsbelow “Baa3” with respect to Moody’s or “BBB-” with respect to S&P or Fitch, or the Bonds cease to berated by one of Moody’s, S&P or Fitch (and such rating agencies are still in the business of ratingobligations such as the Bonds).
However, as provided in the 1999 Revenue Bond Swap, so long as no Insurer Credit Event (as definedtherein) has occurred, no Early Termination Date can be designated unless Ambac Assurance hasconsented in writing thereto.
In consideration for entering into the 1999 Revenue Bonds Swaption, the Authority received a net up-front, non-refundable option payment in the amount of $20,142 from UBS AG, which has been recordedon the combined financial statements as a noncurrent liability (premium payment payable – derivativecompanion instrument). In accordance with the provisions of GASBS 53, this derivative companioninstrument is considered a “borrowing” resulting from the intrinsic value of the swaption at inception.During the option period, interest accretes at the effective rate implied by the cash flows on the borrowingat inception. Once the swaption is exercised, and becomes an active swap, a portion of the swap interestpayments are attributed to principal and interest payments on the borrowing.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 17
Note 4. Derivative Instruments (Continued)
1999 Revenue Bonds Swaption (Continued): On September 3, 2009, UBS AG advised the Authority thatit was exercising its option on this swaption as of January 1, 2010. The Authority began making netinterest payments to USB AG, the counterparty, commencing in February 2010, representing January’snet interest payment. In July 2015, the Authority executed a “swap novation transaction” wherein UBSAG was replaced as the swap counterparty by Wells Fargo. The Authority has been current on all of itsnet payments during the period 2006 to 2014 and it is current on its 2015 monthly net swap interestpayments to the former counterparty (UBS) and the new swap counterparty (Wells Fargo), which totaled$11,826 as of September 30, 2015.
The ratings of the counterparty (Wells Fargo Securities) to the 1999 Revenue Bonds Swap by Moody’s,S&P, and Fitch are A2, A and A, respectively, as of September 30, 2015. As of September 30, 2015, the1999 Revenue Bond Swaption had a mark-to-mark value of ($83,804). As of September 30, 2015, thenotional value of the swap was $316,955.
ImputedYear Ending Beginning Interest Debt EndingDecember 31, Balance Accrual Payment Balance
2015 17,401$ 820$ (3,245)$ 14,976$2016 14,976 706 (3,024) 12,6582017 12,658 597 (2,793) 10,4622018 10,462 493 (2,547) 8,4082019 8,408 396 (2,287) 6,5172020-2024 6,517 837 (6,987) 3672025 367 17 (384) -
Net Swap Payments: Using rates as of December 31, 2014 and assuming the rates are unchanged forthe remaining term of the bonds, the following table shows the debt service requirements and net swappayments for the Authority’s hedged variable rate bonds:
Variable Rate Bonds Swap Interest PaymentsTotal
Year Ending Variable Net Bonds andDecember 31, Principal Interest Total Fixed Pay Received Pay Swaps
2015 37,920$ 126$ 38,046$ 35,028$ 654$ 34,374$ 72,420$2016 40,035 118 40,153 32,904 609 32,295 72,4482017 42,290 109 42,399 30,660 562 30,098 72,4972018 44,645 100 44,745 28,291 513 27,778 72,5232019 47,155 90 47,245 25,789 464 25,325 72,5702020-2024 278,525 291 278,816 86,217 1,325 84,892 363,7082025-2026 134,485 29 134,514 11,408 151 11,257 145,771
625,055$ 863$ 625,918$ 250,298$ 4,278$ 246,020$ 871,938$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 18
Note 4. Derivative Instruments (Continued)
Objective and Terms of Investment Derivative Instruments: On August 21, 2000, the Authority enteredinto two (2) interest rate agreements with Bank of America, N.A. in the notional amounts of $39,657 (the“2000 Swaption #1”) and $10,436 (the “2000 Swaption #2”, and together with the 2000 Swaption #1, the“2000 Swaptions”). Under the 2000 Swaptions, Bank of America, N.A. has the option on certain futuredates (two business days preceding July 1, 2005 and each January 1 and July 1 thereafter through andincluding July 1, 2025 with respect to the 2000 Swaption #1 and two business days preceding January 2,2006 and each July 1 and January 1 thereafter through and including July 1, 2025 with respect to the2000 Swaption #2) to cause the 2000 Swaption #1 or the 2000 Swaption #2, as applicable, to commenceon the next succeeding January 1 or July 1. If an option is exercised, the 2000 Swaption #1, or the 2000Swaption #2, as applicable, would continue (unless earlier terminated) through January 1, 2026. TheAuthority’s obligations under the 2000 Swaptions are general unsecured corporate obligations.
If the options relating to the 2000 Swaption #1 or the 2000 Swaption #2 are exercised, Bank of America,N.A. is obligated to pay periodic interest payments (payable monthly) to the Authority based upon a fixedrate of 5.9229% per annum, and the Authority is obligated to pay periodic interest payments (payablemonthly) to Bank of America, N.A. at a variable rate based upon the Securities Industry and FinancingMarkets Association (SIFMA) (formerly the BMA Municipal Swap Index) (a tax-exempt variable rateindex). Only the net difference in the periodic payments owed would be exchanged between Bank ofAmerica, N.A. and the Authority. As of September 30, 2015, Bank of America, N.A. has not exercised itsoptions on the aforementioned swaptions with a value totaling ($452.5).
In consideration for entering into the 2000 Swaptions, the Authority received net up-front, non-refundableoption payments in the aggregate amount of $1,400 from Bank of America, N.A., which represented thetime value for holding the written option. Such payments were recorded as unearned revenue andamortized as interest revenue in prior years. No unearned revenue balance remained as of September30, 2015 and December 31, 2014.
Risks Related to Derivative Instruments:
Credit Risk: For the years ended December 31, 2014 and 2013, the Authority was not exposed tocredit risk on its hedging derivative instruments or investment derivatives as all such derivativeinstruments were in a liability position based on their fair values. The credit ratings of UBS were A2,A, and A as rated by Moody’s, S&P, and Fitch, respectively, as of December 31, 2014.
In July 2015 UBS was replaced as the counterparty on the 1995 and 1999 Revenue Bond swaps, byTD Bank N.A. and Wells Fargo Bank, N.A., respectively. Ratings for TD Bank and Wells Fargo Bankare shown in the above 1995 and 1999 Revenue Bond swap sections.
Interest Rate Risk: The Authority is exposed to interest rate risk on its derivative instruments. On itspay-variable, received-fixed interest rate swaptions, as the Securities Industry and Financing MarketsAssociation (SIFMA) rate increases, the Authority’s net payments on the swaptions, if exercised,increases. On its pay-fixed, receive-variable interest rate swaps, as the LIBOR rate decreases, theAuthority’s net payments on the swaps increases. While the Authority’s net payments may increase,these increases are partially offset by the variable rate bonds rate.
Basis Risk: The Authority is exposed to basis risk on its pay-fixed interest rate swap hedgingderivative instruments because the variable-rate payments received by the Authority on thesehedging derivative instruments are based on a rate or index other than interest rates the Authoritypays on its hedged variable-rate debt, which is remarketed every five (5) days.
Termination Risk: The Authority or its counterparties may terminate a derivative instrument if theother party fails to perform under the terms of the contract.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 19
Note 4. Derivative Instruments (Continued)
Risks Related to Derivative Instruments (Continued):
Rollover Risk: The Authority is not exposed to rollover risk on its hedging derivative instruments. TheAuthority’s hedging derivative instruments terminate on the same day as the hedged debt matures,unless the Authority opts for earlier termination.
Market-Access Risk: If a particular option is exercised and refunding bonds are not issued, theaffected series of bonds would not be refunded, and the Authority would make net swap payments asrequired by the terms of the applicable aforementioned contracts. If the option is exercised and thevariable-rate bonds issued, the actual difference ultimately recognized by the transaction will beaffected by the relationship between the interest rate terms of the to-be-issued variable-rate bondsversus the payment as stipulated in the swaption agreement.
Swap Management Policy: On December 28, 2009, the Authority’s Board approved a resolution (DRPA-09-099, entitled “Use Debt-Related Swap Agreements”) which, among other things, declared: (i) “that it isthe direction and intention of the Board that the DRPA not enter into any new debt-related swapagreements...”, and (ii) that the staff of the Authority” takes all steps necessary to immediately begin theprocess of recommending to the Board whether, when, and how to terminate the Authority’s currentswaps, with all such terminations, if determined to be advisable, to occur in a methodical and carefulmanner which avoids to the fullest extent possible additional costs or risks may be associated withtermination; and that staff report to the Finance Committee of the Board on a monthly basis the status ofall current swap agreements…”
At its September 2014 meeting, the Authority’s Board approved resolution DRPA 14-116 entitled“Authorization to Terminate and Replace Existing UBS Swaps with New Swap Counterparty(ies)“ whichauthorized the Authority to terminate its existing swaps with UBS “in order to reduce Authority swapexposure and to provide more favorable terms to the Authority.” In addition, the Authority adopted awritten swap policy. (Note: subsequent to the passage of DRPA-14-116, the Authority issued a RFQrelated to the possible replacement of its existing counterparty, and is presently working with severalrespondents to complete the ISDA Master agreement and other documentation necessary to change thecurrent counterparty.)
Replacement of UBS as Swap Counterparty: Based on this authorization, in July 2015, the Authorityexecuted two separate swap novation transactions with TD Bank and Wells Fargo Bank, N.A., replacingUBS as the counterparty on the 1995 and 1999 Revenue Bond swaps, respectively. The benefits to theAuthority for these swap novations includes: 1) removal of cross-default provisions on our Revenueswaps related to the Authority’s Port District Project Bonds, 2) increased swap counterparty credit qualityand 3) diversification of swap counterparty exposure, 4) insulation from collateralization/terminationconsequence to the DRPA from a DRPA Revenue Bond downgrade and 5) the ability to terminateportions, or all, of the swaps, based on certain conditions.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 20
Note 5. Accounts Receivable
Accounts receivable for September 30, 2015 and December 31, 2014 are as follows:
Note 6. Changes in Longer Term Liabilities
Long-term liability activity for the period ended September 30, 2015 is as follows:
9/30/2015 12/31/2014
Reimbursements from governmental agencies - capital
improvements to the PATCO system due from the 10,343$ 3,481$
Federal Transit Administration
Reimbursements from governmental agencies - FTA, DOT,
FEMA, PEMA, and U.S. and NJ Homeland Security 341 709
Development projects 3,568 3,563
E-ZPass bridge tolls from other agencies 4,788 3,762
Other 1,072 1,122
Gross receivables 20,112 12,637
Less: allowance for uncollectibles (3,500) (3,500)
Net total receivables 16,612$ 9,137$
Beginning Ending Due within
Balance Increases Decreases Balance 1 Year
Bonds payable
1999 Port District Project Bonds 27,675$ (3,665)$ 24,010$ 3,945$
2008 Revenue Refunding Bonds 287,800 (17,620) 270,180 18,575
2010 Revenue Refunding Bonds 337,255 (20,300) 316,955 21,460
2010 Revenue Bonds 308,375 308,375
2012 Port District Project Refunding Bonds 147,240 (5,800) 141,440 6,030
2013 Revenue Bonds 476,585 476,585
Issuance discounts/premiums 28,248 (2,096) 26,152
Total bonds payable 1,613,178 (49,481) 1,563,697 50,010
Other liabilities
Claims and judgments 2,657 340 (668) 2,330 632
Self-insurance 4,583 1,535 (1,563) 4,555 1,988
Sick and vacation leave 3,898 948 (994) 3,852 963
Unearned revenue 9,329 1,431 (4,872) 5,887 2,790
Other (includes net OPEB obligation) 31,445 31,445
Premium payment payable - derivative
companion instrument 29,335 29,335 5,096
Derivative instrument - interest rate swap 117,182 117,182
1,811,607$ 4,254$ (57,579)$ 1,758,282$ 61,479$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 21
Note 6. Changes in Longer Term Liabilities (Continued)
Long-term liability activity for the year ended December 31, 2014 is as follows:
Note 7. Investment in Facilities
Capital assets for the period ended September 30, 2015 were as follows:
Beginning Ending Due within
Balance Increases Decreases Balance 1 Year
Bonds payable
1999 Port District Project Bonds 31,080$ (3,405)$ 27,675$ 3,665$
2008 Revenue Refunding Bonds 304,510 (16,710) 287,800 17,620
2010 Revenue Refunding Bonds 350,000 (12,745) 337,255 20,300
2010 Revenue Bonds 308,375 308,375
2012 Port District Project Refunding Bonds 153,030 (5,790) 147,240 5,800
2013 Revenue Bonds 476,585 476,585
Issuance discounts/premiums 31,135 25$ (2,912) 28,248
Total bonds payable 1,654,715 25 (41,562) 1,613,178 47,385
Other liabilities
Claims and judgments 6,854 6,234 (10,431) 2,657 721
Self-insurance 3,687 3,484 (2,588) 4,583 2,000
Sick and vacation leave 4,122 22 (246) 3,898 975
Unearned revenue 8,682 1,670 (1,023) 9,329 4,421
Other (includes net OPEB obligation) 41,502 5,543 (15,600) 31,445
Premium payment payable - derivative -
companion instrument 33,588 (4,253) 29,335
Derivative instrument - interest rate swap 116,646 2,106 (1,570) 117,182
1,869,796$ 19,084$ (77,273)$ 1,811,607$ 55,502$
Beginning Ending
Balance Increases Decreases Balance
Capital assets not being depreciated
Land 74,225$ 74,225$
Construction in progress 348,278 102,498 450,776
Total capital assets not being depreciated 422,503 102,498 - 525,001
Capital assets being depreciated
Bridges and related building and equipment 1,138,185 1,138,185
Transit property and equipment 559,866 559,866
Port enhancements 6,703 6,703
Total capital assets being depreciated 1,704,754 - - 1,704,754
Less: accumulated depreciation for:
Bridges and related building and equipment (521,992) (27,054) (549,046)
Transit property and equipment (252,430) (15,739) (268,169)
Port enhancements (4,813) (243) (5,056)
Total accumulated depreciation (779,235) (43,036) (822,271)
Total capital assets being depreciated, net 925,519 (43,036) - 882,483
Total capital assets, net 1,348,022$ 59,462$ -$ 1,407,484$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 22
Note 7. Investment in Facilities (Continued)
Capital assets for the year ended December 31, 2014 were as follows:
Total depreciation expense for the periods ended September 30, 2015 and December 31, 2014 was$43,036 and $57,425, respectively.
Note 8. Deferred Compensation Plan
The Authority offers its employees a deferred compensation plan in accordance with Internal RevenueCode Section 457. The plan, available to all full-time employees, permits them to defer a portion of theirsalary until future years. The deferred compensation is not available to employees until termination,retirement, death, or unforeseeable emergency. The Authority does not make any contributions to theplan. To comply with changes in federal regulations and GASBS 32, Accounting and Financial Reportingfor Internal Revenue Code 457 Deferred Compensation Plans, the Authority amended the plan in 1998 sothat all amounts of compensation deferred under the plan, all property and rights purchased with thoseamounts, and all income attributable to those amounts, property, or rights are solely the property of theemployees.
Note 9. Pension Plans
Employees of the Authority participate in the Pennsylvania State Employees’ Retirement System, thePublic Employees’ Retirement System of New Jersey, or the Teamsters Pension Plan of Philadelphia andVicinity.
Pennsylvania State Employees’ Retirement System:
Plan Description: Permanent full-time and part-time employees are eligible and required to participate inthis cost-sharing multiple-employer defined benefit plan that provides pension, death and disabilitybenefits.
Beginning Ending
Balance Increases Decreases Balance
Capital assets not being depreciated
Land 74,225$ 74,225$
Construction in progress 290,453 131,992$ (74,167)$ 348,278
Total capital assets not being depreciated 364,678 131,992 (74,167) 422,503
Capital assets being depreciated
Bridges and related building and equipment 1,124,425 18,118 (4,358) 1,138,185
Transit property and equipment 506,193 56,012 (2,339) 559,866
Port enhancements 6,665 38 6,703
Total capital assets being depreciated 1,637,283 74,168 (6,697) 1,704,754
Less: accumulated depreciation for:
Bridges and related building and equipment (489,630) (36,720) 4,358 (521,992)
Transit property and equipment (234,427) (20,342) 2,339 (252,430)
Port enhancements (4,450) (363) (4,813)
Total accumulated depreciation (728,507) (57,425) 6,697 (779,235)
Total capital assets being depreciated, net 908,776 16,743 - 925,519
Total capital assets, net 1,273,454$ 148,735$ (74,167)$ 1,348,022$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 23
Note 9. Pension Plans (Continued)
Pennsylvania State Employees’ Retirement System (Continued):
Plan Description (Continued): A member may retire after completing three years of service and afterreaching normal retirement age (the age of 60, except police officers at age 50, or the age at which 35years of service has been completed, whichever occurs first). Benefits vest after five years of service, orafter 10 years of service for those hired on or after January 1, 2011. If an employee terminates his or heremployment after at least five years of service (10 years if hired on or after January 1, 2011) but beforethe normal retirement age, he or she may receive pension benefits immediately or defer pension benefitsuntil reaching retirement age. Employees who retire after reaching the normal retirement age with atleast three years of credited service who started on or prior to December 31, 2010 are entitled to receivepension benefits equal to 2.5% of their final average compensation (average of the three highest years inearnings) times the number of years for which they participated in the plan. Those employees who werehired after January 1, 2011 have their multiplier reduced to 2.0% unless they select a higher contributionlevel upon hire, in which case they are eligible to join the 2.5% class. The pension benefits received byan employee who retires after ten years of credited service but before normal retirement age are reducedfor the number of years that person is under normal retirement age.
Pension provisions include death benefits, under which the surviving beneficiary may be entitled toreceive the employee’s accumulated contributions less the amount of pension payments that theemployee received, the present value of the employees’ account at retirement less the amount of pensionbenefits received by the employee, the same pension benefits formerly received by the employee, or one-half of the monthly pension payment formerly received by the employee. The maximum pension benefitto the employee previously described may be reduced depending on the benefits elected for the survivingbeneficiary.
The Pennsylvania State Employees’ Retirement System issues a publicly available annual financialreport, including financial statements, which may be obtained by writing to Pennsylvania StateEmployees’ Retirement System, 30 North Third Street, Harrisburg, Pennsylvania 17108-1147.
Funding Policy: The contribution requirements of plan members and the Authority are established andamended by the Pennsylvania State Employees’ Retirement System Board. As of January 1, 2002,employees are required to contribute 6.25% (unless opting for 9.3% deductions in order to be eligible forthe 2.5% pension compensation) of their gross earnings to the plan. The Authority was required to, anddid, contribute an actuarially determined amount to the plan, which equaled 17.57%, 13.27% and 9.42%,of covered payroll in 2014, 2013 and 2012, respectively. In 2014, 2013 and 2012, the Authority’s requiredcontributions to the plan were $7,652, $5,728, and $4,058, respectively, which represented 100% of therequired contribution for the aforementioned years.
New Jersey Public Employees Retirement System (NJ PERS):
Plan Description: Permanent full-time employees, hired after January 1, 2002, who were members of NJPERS when they were hired, are eligible to participate in the cost-sharing multiple-employer definedbenefit plan (administered by the New Jersey Division of Pensions and Benefits). The NJ PERS wasestablished in 1955. The PERS provides retirement, death and disability, and medical benefits toqualified members. Vesting and benefit provisions are established by N.J.S.A. 43:15A and 43:3B.
Funding Policy: The contribution requirements of plan members are determined by State statute. Inaccordance with Chapter 62, P.L. 1994, plan members enrolled in the NJ PERS were required tocontribute 5% of their annual covered salary. Effective July 1, 2008, however, in accordance withChapter 92, P.L. 2007 and Chapter 103, P.L. 2007, plan members were required to contribute 5.5% oftheir annual covered salary. For employees enrolled in the retirement system prior to July 1, 2008, theincrease was effective with the payroll period that began immediately after July 1, 2008. Pursuant to theprovisions of Chapter 78, P.L. 2011, effective October 1, 2011, the active member contribution rateincreased to 6.5%, plus an additional 1.0% phased-in over seven years. The phase-in of the additionalincremental member contribution amount began July 1, 2012 and increases each subsequent July 1.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 24
Note 9. Pension Plans (Continued)
New Jersey Public Employees Retirement System (NJ PERS) (Continued):
Funding Policy (Continued): The State Treasurer has the right under the current law to make temporaryreductions in member rates based on the existence of surplus pension assets in the retirement system;however, the statute also requires the return to the normal rate when such surplus pension assets nolonger exist.
The Authority is billed annually for its normal contribution, plus any accrued liability. The Authority begansending employee contributions to NJ PERS beginning in January 2006. The year 2008 was the firstyear that the Authority was required to, and did, contribute an actuarially determined amount to the plan.For the years ended December 31, 2014, 2013 and 2012, the Authority’s total contribution to the plan was$66, $83 and $117, respectively, which represented 100% of the required contribution for theaforementioned years. For the years ended December 31, 2014, 2013 and 2012, the contributionsconsisted of a normal contribution amount of $11, $24 and $33, respectively and an accrued liabilityamount of $51, $67 and $78, respectively.
The New Jersey Public Employees Retirement System issues a publicly available annual financial report,including financial statements, which may be obtained by writing to State of New Jersey, Division ofPensions and Benefits, P.O. Box 295, Trenton, New Jersey 08625-0295.
Teamsters Pension Plan of Philadelphia and Vicinity:
Plan Description: Certain represented employees are eligible and required to participate in the TeamstersPension Plan of Philadelphia and Vicinity, which is a cost-sharing, multiple-employer benefit plan whichprovides pension, death and disability benefits. A member may retire at the later of (a) the date theemployee reaches 65 or (b) the tenth anniversary of the employee’s commencement of participation inthe plan. Additionally, employees are eligible for early retirement after 10 years of participation in theplan and (a) completion of 30 years of vested service or (b) attainment of age 50 and completion of 10years of vested service. Benefits vest after 10 years of service. An employee who retires on or after hisor her normal retirement age is entitled to receive benefits based on his or her credited years of servicemultiplied by a monthly benefit rate, which is determined based on the employer’s daily contributions.The benefits are subject to maximum rates that vary according to employer daily contribution rates.Members may also receive benefits after early retirement at reduced rates, depending on age atretirement.
An employee who qualifies for disability retirement benefits (total and permanent disability with 10 yearsof vested service and 5 years of continuous service with at least 300 covered days of contributions) isentitled to receive two hundred dollars per month until retirement age, when retirement benefits wouldcommence.
Provisions include surviving spouse death benefits, under which the surviving spouse is entitled to a 50%survivor annuity in certain cases.
Funding Policy: The Teamsters Pension Plan is controlled by the Teamsters Pension Plan of Philadelphiaand Vicinity Board. The employer’s contribution requirements are determined under the terms of oneCollective Bargaining Agreement in force between the employer and the Teamsters. The dailycontribution rate was $22.90 per participating employee, and increased to $24.02 per participatingemployee effective August 2014. The Authority’s contributions totaled 7.67%, 8.02% and 8.22% ofcovered payroll in 2014, 2013 and 2012, respectively. The employees of the Authority make nocontributions to the plan. The Authority contributed $1,001, $1,066, and $1,076 in 2014, 2013 and 2012,respectively, which represented 100% of the required contribution for the aforementioned years.
The Teamsters Pension Plan of Philadelphia and Vicinity issues a publicly available annual financialreport, including financial statements, which may be obtained by writing to Teamsters Pension Plan ofPhiladelphia and Vicinity, Fourth and Cherry Streets, Philadelphia, Pennsylvania 19106.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 25
Note 10. Postemployment Healthcare Plan
Plan Description: The Authority provides certain health care and life insurance benefits for retiredemployees, where such benefits are established and amended by the Authority’s Board ofCommissioners. The Authority’s Plan provides two agent multiple-employer post-employment healthcareplans which cover two retiree populations: eligible retirees under the age of sixty-five (65) receive benefitsthrough Amerihealth and eligible retirees sixty-five (65) and over receive benefits through the UnitedHealth Group (in partnership with AARP) and Aetna. Life insurance benefits to qualifying retirees areprovided through Prudential. The plans are administered by the Authority; therefore, premium paymentsare made directly by the Authority to the insurance carriers.
During 2014, the Authority’s Board of Commissioners passed resolution DRPA-14-057 authorizing theAuthority to make an initial OPEB contribution in the amount of $10,790 to the newly established OPEBTrust, which was established with PNC Institutional Management. The OPEB Trust is irrevocable and isexempt from federal and state income taxes under Internal Revenue Code Section 115. The solepurpose of the OPEB Trust is to provide funds to pay postemployment benefits to qualified retirees andtheir dependents. Through its annual budget resolution, the Authority is authorized to contribute anadditional $5,000 to its OPEB Trust during 2015.
Note 10. Postemployment Healthcare Plan (Continued)
Funding Policy: Employees become eligible for retirement benefits based on hire date and years ofservice. For employees hired after January 1, 2007, no subsidized retiree benefits are offered. Thecontribution requirements of plan members and the Authority are established, and may be amended, bythe Authority’s Board of Commissioners. Plan members receiving benefits contribute the followingamounts: $65 per month for retiree-only coverage for the base plan, $130 per month for retiree/spouse(or retiree/child) coverage, and $195 per month for retiree/family (or children) coverage to age sixty-five(65) for the base plan, and $55 per month per retiree, per dependent for both the United Health Group (inpartnership with AARP) and Aetna coverages. An additional amount is required for those retirees, underage sixty-five (65), who opt to participate in the “buy-up plan” for retirees and their dependents.
As previous stated, the Authority made its initial irrevocable contribution to the OPEB Trust during 2014.Prior to 2014, the Authority funded its current retiree postemployment benefits cost on a “pay-as-you-go“basis, net of plan member contributions. The Authority’s contributions to the Plan, which includes the“pay-as-you-go“ costs, net of plan member contributions, for the years ended 2014, 2013, and 2012 were$15,600, $5,304 and $4,242, respectively.
Future Retirees: In accordance with GASBS No.45, the Authority is required to expense the annualrequired contribution (ARC) of the employer, an amount actuarially determined in accordance with theparameters of GASBS 45. The ARC represents a level of funding that, if paid on an ongoing basis, isprojected to cover normal cost each year and amortize any unfunded actuarial liabilities (or fundingexcess) over a period not to exceed thirty (30) years. The ARC includes the costs of both current andfuture retirees. The current ARC was determined to be $5,056, at an unfunded discount rate of 5%. Asstated above, the Authority has begun funding the actuarial accrued liability for postemployment benefits.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 26
Note 10. Postemployment Healthcare Plan (Continued)
Annual OPEB Cost: The Authority’s annual required contribution (ARC), the interest on the net OPEBobligation, the adjustment to the ARC, the increase or decrease in the net OPEB obligation, the netOPEB obligation, and the percentage of annual OPEB cost contributed to the plan for 2014, 2013 and2012 are as follows:
Funded Status and Funding Progress: Using the report from January 1, 2013, the most recent actuarialvaluation date, the results were rolled forward to calculate year-end December 31, 2014. The actuarialaccrued liability for benefits as of December 31, 2014 was $115,245, and the actuarial value of planassets was $10,780, or 9.4% funded, resulting in an unfunded actuarial accrued liability (UAAL) of$104,465.
Funded Status and Funding Progress (Continued): The covered payroll (annual payroll of activeemployees covered by the plan) was $43,453 and the ratio of the UAAL to the covered payroll was240.4%. (For additional information, please refer to the “required supplementary information schedule offunding progress for health benefits plan” shown at the end of the footnote section.) Actuarial valuationsof an ongoing plan involve estimates of the value of reported amounts and assumptions about theprobability of occurrence of events far into the future.
Examples include assumptions about future employment, mortality and the healthcare cost trend.Amounts determined regarding the funded status of the plan and the annual required contributions of theemployer are subject to continual revision as actual results are compared with past expectations and newestimates are made about the future. The schedule of funding progress, presented as requiredsupplementary information following the notes to the combined financial statements, presents multiyeartrend information that shows whether the actuarial value of the plan assets is increasing or decreasingover time relative to the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions: Projections of benefits for financial reporting purposes are based onthe substantive plan (the plan as understood by the employer and plan members) and include the typesof benefits provided at the time of each valuation and the historical pattern of sharing benefit costsbetween the employer and plan members to that point. The actuarial methods and assumptions usedinclude techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and theactuarial value of assets, consistent with the long-term perspective of the calculations.
2014 2013 2012
Annual required contribution (arc) 5,056$ 4,963$ 5,347$
Interest on the net OPEB obligation 2,075 2,068 1,978
Adjustment to the arc (1,588) (1,588) (1,270)
Annual OPEB cost 5,543 5,443 6,055
Pay-as-you go cost (existing retirees) (4,810) (5,304) (4,242)
Increase (decrease) in the net OPEB obligation 733 139 1,813
Net OPEB Obligation, January 1 41,502 41,363 39,550
OPEB Obligation, December 31 42,235 41,502 41,363
OPEB Trust Contributions (10,790) - -
Net OPEB Obligation, December 31 31,445$ 41,502$ 41,363$
Percentage of Annual OPEB Cost Contributed 281% 97% 70%
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 27
Note 10. Postemployment Healthcare Plan (Continued)
Actuarial Methods and Assumptions (Continued): In the January 1, 2013 actuarial valuation, the projectedunit credit actuarial cost method was used. Under this method an actuarial accrued liability is determinedas the actuarial present value of the portion of projected benefits which is allocated to service before thecurrent plan year. In addition, a normal cost is determined as the actuarial present value of the portion ofprojected benefits which is allocated to service in the current plan year for each active participant underthe assumed retirement age. The UAAL is being amortized (straight-line) for thirty (30) year on an openbasis. The actuarial assumptions included the following:
Mortality: The mortality table employed in the valuation was the RP2000 Healthy Table Male andFemale.
Inflation Rate: 2.5% per annum compounded annually.
Discount Rate: Future costs have been discounted at the rate of 5.00% compounded annually forGASBS 45 purposes.
Turnover: Assumptions for terminations of employment other than for death or retirement will vary byage and years of service with rates of turnover based on State Employees Retirement System ofPennsylvania.
Disability: No terminations of employment due to disability were assumed. Retirees resulting from adisability were factored into the determination of age at retirement.
Age of Retirement: The assumption that the active participants, on average, will receive their benefitswhen eligible, but no earlier than age 55.
Spousal Coverage: Married employees will remain married.
Prior Service: No prior service for active employees was assumed.
Health Care Cost Trend Rate:
Projected Salary Increase: Annual salary increase is 2.5%.
Administration Expenses: The annual cost to administer the retiree claims was assumed at 2.5%which was included in the annual health care costs.
Employee Contributions: It was assumed that employees will contribute two thousand six hundredand eleven ($2,611) per year for family medical coverage and eight hundred eighty four ($884) forsingle medical coverage.
Note 11. Indentures of Trust
The Authority is subject to the provisions of the following indentures of Trust: Revenue Refunding Bondsof 1998, dated July 1, 1998; the Revenue Refunding Bonds of 2008, dated July 25, 2008 and theRevenue Refunding Bonds of 2010 and the 2010 Revenue Bonds (Series D), dated May 15, 2010 andJuly 15, 2010 respectively; and the 2013 Revenue Bonds, dated December 1, 2013, respectively(collectively the “Bond Resolution”); the Port District Project Bonds of 1999, dated December 1, 1999, andthe 2012 Port District Project Refunding Bonds, dated December 1, 2012.
Year Pre-65 Post-65
Initial Trend 01/01/15 to 01/01/18 9.0% 9.0%
Ultimate Trend 01/01/19 to later 5.0% 5.0%
Grading Per Year 1.0% 1.0%
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 28
Note 11. Indentures of Trust (Continued)
The Bond Resolution requires the maintenance of the following accounts:
Project Fund: This restricted account was established in accordance with Section 6.02 of the BondResolution. The Project Fund is held by the Trustee and is applied to pay the cost of the Projectsand is pledged, pending application to such payment of costs for the security of the payment ofprincipal and interest on the Revenue, Revenue Refunding, and Project Bonds (the “Bonds”).
Debt Service Fund: This restricted account was established in accordance with Section 6.04 of theBond Resolution for the payment of maturing interest and principal on the Bonds. The balance ondeposit must be sufficient to enable the Trustee to withdraw amounts equal to interest due on theBonds, principal amounts maturing on Bonds, accrued interest included in the purchase price of thebonds purchased for retirement, and sinking fund installments when payments are required.
Debt Service Reserve Fund: This restricted account was established in accordance with Section6.05 of the Bond Resolution. The amount of funds on deposit must be maintained at a level equal tothe Maximum Debt Service to insure funds are available for payment of Debt Service.
Bond Redemption Fund: This restricted account was established in accordance with section 6.06 ofthe Bond Resolution to account for amounts received from any source for the redemption of Bonds,other than mandatory sinking fund payments.
Rebate Fund: This restricted account was established in accordance with Section 6.07 of the bondResolution account for amounts deposited from time to time in order to comply with the arbitragerebate requirements of Section 148 of the Code as applicable to any Series of Tax-Exempt Bondsissued.
The Bond Resolution requires the maintenance of the following accounts (continued):
Revenue Fund: This unrestricted account was established in accordance with Section 6.03 of theBond Resolution for the Authority to deposit all Revenues. On or before the 20
thday of each
calendar month, the Trustee shall, to the extent money is available, after deduction of cash andinvestment balances for the 15% working capital reserve, transfer to or credit funds needed in thefollowing order: (1) the Debt Service Fund, (2) the Debt Service Reserve Fund, (3) any ReserveFund Credit Facility Issuer, (4) the Trustee’s Rebate Fund, (5) the Maintenance Reserve Fund, (6)the General Fund.
Maintenance Reserve Fund: This restricted account was established in accordance with Section6.08 of the Bond Resolution. These funds are maintained for reasonable and necessary expenseswith respect to the system for major repairs, renewals, replacements, additions, betterments,enlargements, improvements and extraordinary expenses, all to the extent not provided for in thethen current Annual Budget. Money in this account is pledged for the security of payment principaland interest on the bonds. Whenever the amount in this account exceeds the “MaintenanceReserve Fund Requirement,” the excess shall be deposited in the General Fund. The “MaintenanceReserve Fund Requirement” on any date is at least $3,000.
General Fund: This unrestricted account was established in accordance with Section 6.09 of theBond Resolution. All excess funds of the Authority are recorded in the General Account. If theAuthority is not in default in the payment of bond principal or interest and all fund requirements aresatisfied, the excess funds may be used by the Authority for any lawful purpose.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 29
Note 12. Funded and Long-Term Debt
At September 30, 2015, the Authority had $1,563,697 Revenue, Revenue Refunding, and Port DistrictProject Bonds outstanding, consisting of bonds issued in 1999, 2008, 2010, 2012 and 2013. The 1999Port District Project Bonds were issued pursuant to an Indenture of Trust dated December 1, 1999. The2008 Revenue Refunding Bonds were issued pursuant to the Indenture of Trust dated July 1, 1998, assupplemented by a Fourth Supplemental Indenture dated October 1, 2007 and a Fifth SupplementalIndenture dated July 15, 2008. The 2010 Revenue Refunding Bonds were issued pursuant to anIndenture of Trust as previously supplemented by five supplemental indentures thereto and as furthersupplemented by a Sixth Supplemental Indenture dated as of March 15, 2010. The 2010 Revenue Bondswere issued pursuant to Indenture of Trust, dated as of July 1, 1998, a Sixth Supplemental Indenture,dated as of March 15, 2010, and a Seventh Supplemental Indenture, dated as of July 1, 2010. The 2012Port District Project Refunding Bonds were issued pursuant to an Indenture of Trust dated December 1,2012. The 2013 Revenue Bonds were issued pursuant an Indenture of Trust, a Ninth SupplementalIndenture, dated as of December 1, 2013.
1999 Port District Project Bonds: On December 22, 1999, the Authority issued $272,095 to provide fundsto finance (a) all or a portion of the cost of certain port improvement and economic development projectswithin the Port District, (b) a deposit of cash or a Reserve Fund Credit Facility to the credit of the DebtService Reserve Fund established under the 1999 Port District Project Bond Indenture and (c) all or aportion of the costs and expenses of the Authority relating to the issuance and sale of the 1999 PortDistrict Project Bonds (Series A and B).
The 1999 Port District Project Bonds are general corporate obligations of the Authority. The 1999 PortDistrict Project Bonds are not secured by a lien or charge on, or pledge of, any revenues or other assetsof the Authority other than the monies, if any, on deposit from time to time in the Funds established underthe 1999 Port District Project Bond Indenture. No tolls, rents, rates or other such charges are pledged forthe benefit of the 1999 Port District Project Bonds. The 1999 Port District Project Bonds are equally andratably secured by the funds on deposit in the Funds established under the 1999 Port District ProjectBond Indenture, except for the Rebate Fund. The 1999 Port District Project Bonds are payable from suchFunds and from other monies of the Authority legally available.
The 1999 Port District Project Bonds are subject to optional redemption and mandatory sinking fundredemption prior to maturity as more fully described herein.
The scheduled payment of principal and interest on the 1999 Port District Project Bonds when due areguaranteed under an insurance policy issued concurrently with the delivery of the 1999 Port DistrictProject Bonds by Financial Security Assurance Inc.
On December 20, 2012, all remaining 1999 Series B Port District Project Bonds were redeemed, prior tomaturity, at a redemption price of 100%, using proceeds from the issuance of the 2012 Port DistrictProject Refunding Bonds.
The 1999 Port District Project Bonds (Series A) outstanding at September 30, 2015 are as follows:
Maturity Date Interest Principal Maturity Date Interest Principal
(January 1) Rate/Yield Amount (January 1) Rate/Yield Amount
Term Bonds
2016 7.63% 3,945$ 2019 7.63% 4,920$
2017 7.63% 4,245 2020 7.63% 5,295
2018 7.63% 4,570 2021 7.63% 1,035
Total par value of 1999 Port District Project Bonds 24,010$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 30
Note 12. Funded and Long-Term Debt (Continued)
1999 Port District Project Bonds (Continued):
Optional Redemption: The Series A Port District Project Bonds are redeemable by the Authority on anyinterest payment date in whole or in part, and if in part, in any order of maturity specified by the Authorityand in any principal amount within a maturity as specified by the Authority. Any such redemption shall bemade at a redemption price equal to accrued interest to the redemption date plus the greater of (i) theprincipal amount of the Series A Port District Project Bonds to be redeemed, and (ii) an amount equal tothe discounted remaining fixed amount payments applicable to the Series A Port District Project Bonds tobe redeemed. Allocation of the amounts of Series A Port District Project Bonds to be redeemed shall beproportionate nearly as reasonably possible having due regard for minimum authorized denominations ofthe 1999 Port District Project Bonds among the respective interest of the holders of the Series A PortDistrict Project Bonds to be redeemed at the time of selection of such Series A Port District Project Bondsfor redemption regard for minimum authorized denominations of the 1999 Port District Project Bondsamong the respective interest of the holders of the Series A Port District Project Bonds to be redeemed atthe time of selection of such Series A Port District Project Bonds for redemption.
2008 Revenue Refunding Bonds: On July 25, 2008, the Authority issued $358,175 in Revenue RefundingBonds as variable rate demand obligations (VRDO’s). The 2008 Revenue Refunding Bonds were issuedto provide funds, together with other funds available: (a) to finance the current refunding of $358,175aggregate principal amount of the Authority’s Revenue Refunding Bonds, Series of 2007, consisting of allof the outstanding bonds of such series; and (b) to pay the costs of issuance of the 2008 RevenueRefunding Bonds.
The 2008 Revenue Refunding Bonds were issued pursuant to the Compact, the New Jersey Act, thePennsylvania Act (as such terms are defined herein) and an Indenture of Trust dated as of July 1, 1998,by and between the Authority and TD Bank, N.A., Cherry Hill, New Jersey, as successor to CommerceBank, N.A. (the “Trustee”), as supplemented by a First Supplemental Indenture dated as of July 1, 1998,a Second Supplemental Indenture dated as of August 15, 1998, a Third Supplemental Indenture dated asof December 1, 1999, a Fourth Supplemental Indenture dated as of October 1, 1997 and a FifthSupplemental Indenture dated as of July 15, 2008 (the “Fifth Supplemental Indenture”) (collectively, the“1998 Revenue Bond Indenture”).
The 2008 Revenue Refunding Bonds, together with all other indebtedness outstanding under the 1998Revenue Bond Indenture and any parity obligations hereafter issued under the 1998 Revenue BondIndenture, are equally and ratably payable solely from and secured by a lien on and security interest in (i)the Net Revenues described herein, (ii) all moneys, instruments and securities at any time and from heldby the Authority or the Trustee in any Fund created or established under the 1998 Revenue BondIndenture and (iii) the proceeds of all the foregoing, except for the moneys, instruments and securitiesheld in the 1998 General Fund and the 1998 Rebate Fund. The 2008A Letter of Credit (as defined herein)secures only the 2008A Revenue Refunding Bonds and the 2008B Letter of Credit (as defined herein)secures only the 2008B Revenue Refunding Bonds.
The 2008 Revenue Refunding Bonds are subject to purchase on the demand of the holder at a priceequal to principal plus accrued interest on seven days’ notice and delivery to the Authority’s tender agent,TD Bank, N.A. The tender agent shall provide a copy of said notice to the applicable remarketing agent,who is authorized to use its best efforts to sell the repurchased bonds at a price equal to 100 percent ofthe principal plus accrued interest to the purchase date.
Under irrevocable direct pay letters of credit (“DPLOC”) issued by Bank of America, N.A. and TD Bank,N.A., the trustee or the remarketing agent is entitled to draw an amount sufficient to pay the purchaseprice of the bonds delivered to it. The letters of credit (“LOC”) require the Authority to make immediatepayment of any draws under the line and were valid through July 23, 2013. In 2013, the letters of creditwere extended as noted below.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 31
Note 12. Funded and Long-Term Debt (Continued)
2008 Revenue Refunding Bonds (Continued): The Authority was initially required to pay annual facilityfees to Bank of America, N.A. and, N.A. for the letters of credit. The initial facility fee was calculatedbased on 1.35% of the gross amount available under the line based on the Authority’s bond ratings, asdetermined by Moody’s and S&P. In addition, the Authority was required to pay an annual remarketingfee, payable quarterly in arrears, equal to 0.07% of the aggregate principal amount of the bondsoutstanding at the beginning of the period.
On June 28, 2013, the Authority amended and extended its DPLOC with TD Bank, N.A. supporting the2008 Revenue Refunding Bonds, Series B, to expire on December 31, 2017. In addition, the Authorityamended and extended its DPLOC with the Bank of America, N.A., effective on July 22, 2013, to expireon July 22, 2016. The new LOC fees range from 0.65% to 0.70%. The annual remarketing feesremained unchanged.
The 2008 Refunding Bonds outstanding as of September 30, 2015 are as follows:
Optional Redemption: While in the Weekly Mode, the 2008A Revenue Refunding Bonds are subject tooptional redemption by the Authority, in whole or in part, in Authorized Denominations on any BusinessDay, at redemption price equal to the principal amount thereof, plus accrued interest, if any, to theRedemption Date. While in the Weekly Mode, the 2008B Revenue Refunding Bonds are subject tooptional redemption by the Authority, in whole or in part, in Authorized Denominations on any BusinessDay, at a redemption price equal to the principal amount thereof, plus accrued interest, if any, to theRedemption Date.
Sinking Fund Redemption: The 2008 Revenue Refunding Bonds are subject to mandatory redemption inpart on January 1 of each year and in the respective principal amounts set forth below at one hundredpercent (100%) of the principal amount of 2008 Revenue Refunding Bonds to be redeemed, plus interestaccrued to the Redemption Date, from funds which the Authority covenants to deposit in the 2008ABonds Sinking Fund Account created in the 1998 Debt Service Fund established pursuant to 1998Revenue Bond Indenture, in amounts sufficient to redeem on January 1 of each year the principal amountof such 2008 Revenue Refunding Bonds for each of the years set forth below:
Series A Series B
Maturity Date Interest Principal Maturity Date Interest Principal
(January 1) Rate/Yield Amount (January 1) Rate/Yield Amount
2026 Variable 127,985$ 2026 Variable 142,195$
Total par value of 2008 Revenue Refunding Bonds 270,180$
Interest Rate Mode: Weekly
Rate Determination Date: Generally each Wednesday
Interest Rate Payment Dates: First Business day of each month
Rate in Effect at September 30, 2015: Series A - .010%; Series B - .010%
Sinking Fund Installments
January 1 Series A Series B Total
2016 $8,800 $9,775 $18,575
2017 9,280 10,310 19,590
2018 9,785 10,870 20,655
2019 10,315 11,465 21,780
2020 10,880 12,090 22,970
2021 11,475 12,745 24,220
2022 12,100 13,440 25,540
2023 12,755 14,175 26,930
2024 13,455 14,945 28,400
2025 14,185 15,760 29,945
2026 14,955 16,620 31,575
127,985$ 142,195$ 270,180$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 32
Note 12. Funded and Long-Term Debt (Continued)
2010 Revenue Refunding Bonds: On June 30, 2010, the Authority issued $350,000 in RevenueRefunding Bonds, Series A of 2010, Revenue Refunding Bonds, Series B of 2010 and RevenueRefunding Bonds, Series C of 2010 as variable rate demand obligations (“VRDOs”). The 2010 RevenueRefunding Bonds were issued pursuant to the Indenture of Trust dated as of July 1, 1998 by and betweenthe Authority and TD Bank, N.A., Cherry Hill, New Jersey, as successor to Commerce Bank, N.A.(“Trustee”), as previously supplemented by five supplemental indentures thereto and as furthersupplemented by a Sixth Supplemental Indenture (“Sixth Supplemental Indenture”) dated as of March 15,2010 (collectively, “1998 Revenue Bond Indenture”). The 2010 Revenue Refunding Bonds were issuedto provide funds, together with other available funds, to (i) currently refund $349,360 aggregate principalamount of the Authority’s outstanding Revenue Bonds, Series of 1999, (ii) fund any required deposit tothe 1998 Debt Service Reserve Fund (defined herein), and (iii) pay the costs of issuance of the 2010Revenue Refunding Bonds.
The 2010 Revenue Refunding Bonds are subject to purchase on the demand of the holder at a priceequal to principal plus accrued interest on seven days’ notice and delivery to the Authority’s tender agent,TD Bank, N.A. The tender agent shall provide a copy of said notice to the applicable remarketing agent,who is authorized to use its best efforts to sell the repurchased bonds at a price equal to 100 percent ofthe principal plus accrued interest to the purchase date.
Under irrevocable letters of credit issued by J.P. Morgan Chase, N.A., Bank of America, N.A. and PNCBank, N.A., the trustee or the remarketing agent is entitled to draw an amount sufficient to pay thepurchase price of the bonds delivered to it. The letters of credit (“LOC”) require the Authority to makeimmediate payment of any draws under the line and were valid through March 29, 2013. In 2013, theletters of credit were replaced as noted below.
Initially, the Authority was required to pay annual facility fees to J.P. Morgan Chase, N.A., Bank ofAmerica, N.A. and PNC Bank, N.A. for the letters of credit in percentages varying from 1.35% to 1.675%of the gross amount available under the LOC, through March 21, 2013, when these LOCs were replaced.In addition, the Authority was required to pay an annual remarketing fee, payable quarterly in arrears,equal to 0.10% of the aggregate principal amount of the bonds outstanding at the beginning of the period.On March 21, 2013, the Authority completed its LOC substitution/replacement program, replacing theexisting LOC providers with three new banks: Royal Bank (Series A), Barclays Bank (Series B), and Bankof New York Mellon (Series C). The LOC fees were reduced, ranging from 0.45% to 0.70%, and theremarketing fee for each series was reduced to 0.08%/annum. The Barclays Bank Direct-Pay Letter ofCredit supporting the 2010 Revenue Refunding Bonds, Series B expired March 20, 2015.
At its January 2015 meeting, the Authority’s Board authorized staff to extend the LOC with Barclays, for a“to-be-determined” term. In February 2015, the Authority requested that Barclays extend the letter ofcredit for a three-year period. On February 18, 2015, Barclays Bank PLC delivered a “Notice ofExtension” to TD Bank (trustee for bonds), to extend the “stated Expiration Date” in the LOC to March 20,2018. The Authority expects to reduce its annual LOC fees by approximately $95,000 annually, as aresult of this extension.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 33
Note 12. Funded and Long-Term Debt (Continued)
2010 Revenue Refunding Bonds (Continued):
The 2010 Revenue Refunding Bonds outstanding at September 30, 2015 were as follows:
Optional Redemption: While in the Weekly Mode, each Series of the 2010 Revenue Refunding Bonds issubject to optional redemption by the Authority, in whole or in part, in Authorized Denominations on anyBusiness Day, at a redemption price equal to the principal amount thereof, plus accrued interest, if any, tothe applicable Redemption Date.
Mandatory Sinking Fund Redemption: The 2010 Revenue Refunding Bonds are subject to mandatoryredemption in part on January 1 of each year and in the respective principal amounts set forth below at100% of the principal amount of 2010 Revenue Refunding Bonds to be redeemed, plus interest accruedto the Redemption Date, from funds which the Authority covenants to deposit in the 2010A Bonds SinkingFund Account, 2010B Bonds Sinking Fund Account, and 2010C Bonds Sinking Fund Account created inthe 1998 Debt Service Fund established pursuant to 1998 Revenue Bond Indenture, in amounts sufficientto redeem on January 1 of each year the principal amount of such 2010 Revenue Refunding Bonds foreach of the years set forth below:
Maturity Date Interest Principal
(January 1) Rate/Yield Amount
Series A 2026 Variable 135,840$
Series B 2026 Variable 135,840
Series C 2026 Variable 45,275
Total par value of 2010 Revenue Refunding Bonds 316,955$
Interest Rate Mode: Weekly
Rate Determination Date: Generally each Wednesday
Rate in Effect at September 30, 2015: Series A - .010%; Series B - .020%; Series C - .010%
Sinking Fund Installments
January 1 Series A Series B Series C Total
2016 9,195$ 9,195$ 3,070$ 21,460$
2017 9,730 9,730 3,240 22,700
2018 10,280 10,280 3,430 23,990
2019 10,875 10,875 3,625 25,375
2020 11,500 11,500 3,830 26,830
2021 12,160 12,160 4,055 28,375
2022 12,855 12,860 4,285 30,000
2023 13,595 13,595 4,530 31,720
2024 14,375 14,375 4,790 33,540
2025 15,200 15,200 5,065 35,465
2026 16,075 16,070 5,355 37,500
135,840$ 135,840$ 45,275$ 316,955$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 34
Note 12. Funded and Long-Term Debt (Continued)
2010 Revenue Refunding Bonds (Continued): On July 15, 2010, the Authority issued $308,375 inRevenue Bonds, Series D of 2010 (the “2010 Revenue Bonds”). The 2010 Revenue Bonds were issuedby means of a book-entry-only system evidencing ownership and transfer of 2010 Revenue Bonds on therecords of The Depository Trust Company, New York, New York (“DTC”), and its participants. Interest onthe 2010 Revenue Bonds will be payable semi-annually on January 1 and July 1 of each yearcommencing January 1, 2011 (each an “Interest Payment Date”).
The 2010 Revenue Bonds were issued pursuant to the Compact, the New Jersey Act, the PennsylvaniaAct (as such terms are defined herein) and an Indenture of Trust, dated as of July 1, 1998, by andbetween the Authority and TD Bank, N.A., Cherry Hill, New Jersey, as successor to Commerce Bank,N.A. (the “Trustee”), as supplemented by a First Supplemental Indenture, dated as of July 1, 1998, aSecond Supplemental Indenture, dated as of August 15, 1998, a Third Supplemental Indenture, dated asof December 1, 1999, a Fourth Supplemental Indenture, dated as of October 1, 2007, a FifthSupplemental Indenture, dated as of July 15, 2008, a Sixth Supplemental Indenture, dated as of March15, 2010, and a Seventh Supplemental Indenture, dated as of July 1, 2010 (collectively, the “1998Revenue Bond Indenture”).
The 2010 Revenue Bonds were issued for the purpose of: (i) financing a portion of the costs of theAuthority’s approved Capital Improvement Program; (ii) funding the Debt Service Reserve Requirementfor the 2010 Revenue Bonds; and (iii) paying the costs of issuance of the 2010 Revenue Bonds (SeriesD). (Note: As per its 2008 Reimbursement Resolution, upon issuance of the 2010 Revenue Bonds, theAuthority reimbursed its General Fund, for approximately $100 million, for prior capital expenditures madeduring the period October 2008 through July 2010).
The 2010 Revenue Bonds are limited obligations of the Authority and are payable solely from the sourcesreferred to in the 2010 Revenue Bonds and the 1998 Revenue Bond Indenture. Neither the credit nor thetaxing power of the Commonwealth of Pennsylvania (the “Commonwealth”) or the State of New Jersey(the “State”) or of any county, city, borough, village, township or other municipality of the Commonwealthor the State is or shall be pledged for the payment of the principal, redemption premium, if any, or intereston the 2010 Revenue Bonds. The 2010 Revenue Bonds are not and shall not be deemed to be a debt orliability of the Commonwealth or the State or of any such county, city, borough, village, township or othermunicipality, and neither the Commonwealth nor the State nor any such county, city, borough, village,township or other municipality is or shall be liable for the payment of such principal or, redemptionpremium, or interest. The Authority has no taxing power.
Mandatory Sinking Fund Redemption: The 2010 Revenue Bonds maturing January 1, 2035 and January1, 2040 are subject to mandatory redemption prior to maturity by the Authority, in part, on January 1 ofeach year in the respective principal amounts set forth below at 100% of the principal amount thereof,plus accrued interest to the Redemption Date from sinking fund installments which are required to be paidin amounts sufficient to redeem on January 1 of each year the principal amount of such 2010 RevenueBonds specified for each of the years set forth below. Payment of principal and interest on the 2010Revenue Bonds (the “2010 Insured Bonds”), in the principal amount of $60,000 maturing January 1, 2040is guaranteed under an insurance policy issued by Assured Guaranty Municipal Corp. (formerly known asFinancial Security Assured, Inc.).
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 35
Note 12. Funded and Long-Term Debt (Continued)
2010 Revenue Bonds (Continued):
The 2010 Revenue Bonds outstanding at September 30, 2015 are as follows:
Optional Redemption: The 2010 Revenue Bonds are subject to redemption at the option of the Authority,prior to maturity, in whole or in part (and if in part, in such order of maturity or within a maturity as theAuthority shall specify, or if the Authority shall fail to specify, by lot or by such other method as the PayingAgent determines to be fair and reasonable and in any principal amount in Authorized Denominations) atany time on or after January 1, 2020. Any such redemption shall be made at a redemption price equal to100% of the principal amount of the 2010 Bonds to be redeemed, plus accrued interest to theRedemption Date.
Maturity Date Interest Principal Maturity Date Interest Principal
(January 1) Rate/Yield Amount (January 1) Rate/Yield Amount
Serial Bonds
2027 5.00% 3,465$
2028 5.00% 17,210
2029 5.00% 18,070
2030 5.00% 18,975
57,720
Term Bonds
2031* 5.00% 16,245$ 2036* 5.00% 14,575
2031* 5.05% 3,675 2036* 5.00% 10,860
2032* 5.00% 17,055 2037* 5.00% 15,310
2032* 5.05% 3,865 2037* 5.00% 11,400
2033* 5.00% 17,905 2038* 5.00% 16,075
2033* 5.05% 4,060 2038* 5.00% 11,970
2034* 5.00% 18,810 2039* 5.00% 16,875
2034* 5.05% 4,260 2039* 5.00% 12,570
2035 5.00% 19,750 2040 5.00% 17,720
2035 5.05% 4,475 2040 5.00% 13,200
250,655
Total par value of 2010 Revenue Bonds 308,375
Less: unamortized bond discount (476)
Total 2010 Revenue Bonds, net 307,899$
* Mandatory sinking fund payments
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 36
Note 12. Funded and Long-Term Debt (Continued)
2012 Port District Project Refunding Bonds: On December 20, 2012, the Authority issued $153,030 inPort District Project Refunding Bonds, Series 2012. The Port District Project Refunding Bonds, Series2012 (the “2012 Bonds”) were issued pursuant to the Compact, the New Jersey Act, the Pennsylvania Act(as such terms are defined herein) and an Indenture of Trust (the "Indenture") dated as of December 1,2012, between the Authority and TD Bank, N.A., Cherry Hill, New Jersey, as trustee (the "Trustee"). The2012 Bonds were issued to (i) refund and redeem all of the outstanding principal balance of and interestaccrued on the Authority's outstanding Port District Project Bonds, Series B of 1998, (the "1998 RefundedBonds"), Port District Project Bonds, Series B of 1999 (the "1999 Refunded Bonds"), and Port DistrictProject Bonds, Series A of 2001 (the "2001 Refunded Bonds").
The refunding resulted in a loss (difference between the reacquisition price and the net carrying amountof the old debt) of $7,000. This difference, reported in the accompanying combined financial statementsas a deferred outflow of resources, is being charged to operations through the year 2025 using theeffective interest method.
The 2012 Bonds are general corporate obligations of the Authority. The 2012 Bonds are not secured bya lien or charge on, or pledge of, any revenues or other assets of the Authority other than the moneys, ifany, on deposit from time to time in the Funds established under the Indenture, except for the RebateFund. No tolls, rents, rates or other charges are pledged for the benefit of the 2012 Bonds. The 2012Bonds are equally and ratably secured by the monies, if any, on deposit in the Funds established underIndenture, except for the Rebate Fund. The 2012 Bonds are payable from such Funds and from othermonies of the Authority legally available therefore.
Redemption Provisions:
Optional Redemption: The 2012 Bonds maturing on or after January 1, 2024 are subject to redemptionprior to maturity at the option of the Authority on or after January 1, 2023, in whole at any time, or in partat any time and from time to time, in any order of maturity specified by the Authority and within a maturityas selected by the Trustee as provided in the Indenture and as summarized below under the subheading“Redemption Provisions - Selection of 2012 Bonds to be Redeemed.” Any such redemption shall bemade at a redemption price equal to the principal amount of the Bonds to be redeemed, plus interestaccrued to the date fixed for redemption.
Payment of Redemption Price: Notice of redemption having been given in the manner provided in theIndenture, or written waivers of notice having been filed with the Trustee prior to the date set forredemption, the 2012 Bonds (or portions thereof) so called for redemption shall become due and payableon the redemption date so designated and interest on such 2012 Bonds (or portions thereof) shall ceaseto accrue from the redemption date whether or not such Bonds shall be presented for payment. Theprincipal amount of all 2012 Bonds so called for redemption, together with the redemption premium, ifany, payable with respect thereto and accrued and unpaid interest thereon to the date of redemption,shall be paid (upon presentation and surrender of such 2012 Bonds) by the Paying Agent out of theappropriate Fund or other funds deposited for the purpose.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 37
Note 12. Funded and Long-Term Debt (Continued)
2012 Port District Project Refunding Bonds (Continued):
Redemption Provisions (Continued):
Selection of 2012 Bonds to be Redeemed: If less than all of the 2012 Bonds are to be redeemed and paidprior to maturity, 2012 Bonds registered in the name of the Authority shall be redeemed before other 2012Bonds are redeemed. Thereafter, the portion of 2012 Bonds to be redeemed shall be selected by theAuthority, or if no such selection is made, by lot by the Trustee from among all outstanding 2012 Bondseligible for redemption. In the case of a partial redemption of 2012 Bonds when 2012 Bonds ofdenominations greater than the minimum Authorized Denomination are outstanding, then for all purposesin connection with such redemption, each principal amount equal to the minimum authorizeddenomination shall be treated as though it were a separate 2012 Bond for purposes of selecting the 2012Bonds to be redeemed, provided that no 2012 Bonds shall be redeemed in part if the principal amount tobe outstanding following such partial redemption is not an authorized denomination.
The 2012 Port District Project Refunding Bonds outstanding at September 30, 2015 are as follows:
2013 Revenue Bonds: On December 18, 2013, the Delaware River Port Authority issued its RevenueBonds, Series of 2013 in the aggregate principal amount of $476,585. The 2013 Revenue Bonds wereissued by means of a book-entry-only system evidencing ownership and transfer of 2013 Revenue Bondson the records of The Depository Trust Company, New York, New York (“DTC”), and its participants.Interest on the 2013 Revenue Bonds will be payable semi-annually on January 1 and July 1 of each yearcommencing July 1, 2014 (each an “Interest Payment Date”).
The 2013 Revenue Bonds were issued pursuant to the Compact, the New Jersey Act, the PennsylvaniaAct (as such terms are defined herein) and an Indenture of Trust, dated as of July 1, 1998, by andbetween the Authority and TD Bank, National Association, Cherry Hill, New Jersey, as successor toCommerce Bank, National Association, as trustee (the “Trustee”), as heretofore supplemented from timeto time, including as supplemented by a Ninth Supplemental Indenture, dated as of December 1, 2013(collectively, the “1998 Revenue Bond Indenture”). The 2013 Revenue Bonds are being issued for thepurpose of: (i) financing a portion of the costs of the Authority’s approved capital improvement program;(ii) funding a deposit to the 1998 Debt Service Reserve Fund established under and as specificallydefined in the 1998 Revenue Bond Indenture; and (iii) paying the costs of issuance of the 2013 RevenueBonds.
Maturity Date Interest Principal Maturity Date Interest Principal
(January 1) Rate/Yield Amount (January 1) Rate/Yield Amount
2016 5.00% 6,030$ 2022 5.00% 14,085$
2017 5.00% 6,335 2023 5.00% 240
2018 2.00% 225 2023 3.00% 14,545
2019 5.00% 6,425 2024 5.00% 15,520
2020 5.00% 6,975 2025 5.00% 16,300
2021 5.00% 7,320 2026 5.00% 17,115
2021 5.00% 12,350 2027 5.00% 17,975
Total par value of 2012 Port District Project Refunding Bonds 141,440
Add: unamortized bond premium 15,849
Total 2012 Port District Project Refunding Bonds, net 157,289$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 38
Note 12. Funded and Long-Term Debt (Continued)
2013 Revenue Bonds (Continued): The 2013 Revenue Bonds are limited obligations of the Authority andare payable solely from the sources referred to in the 2013 Revenue Bonds and the 1998 Revenue BondIndenture. Neither the credit nor the taxing power of the Commonwealth of Pennsylvania (the“Commonwealth”) or the State of New Jersey (the “State”) or of any county, city, borough, village,township or other municipality of the Commonwealth or the State is or shall be pledged for the payment ofthe principal, redemption premium, if any, or interest on the 2013 Revenue Bonds. The 2013 RevenueBonds are not and shall not be deemed to be a debt or liability of the Commonwealth or the State or ofany such county, city, borough, village, township or other municipality, and neither the Commonwealthnor the State nor any such county, city, borough, village, township or other municipality is or shall beliable for the payment of such principal, redemption premium, or interest. The Authority has no taxingpower.
The 2013 Revenue Bonds outstanding at September 30, 2015 are as follows:
Optional Redemption: The 2013 Revenue Bonds are subject to redemption at the option of the Authority,prior to maturity, in whole or in part (and if in part, in such order of maturity or within a maturity as theAuthority shall specify, or if the Authority shall fail to specify, by lot or by such other method as the PayingAgent determines to be fair and reasonable and in any principal amount in Authorized Denominations), atany time on or after January 1, 2024. Any such redemption shall be made at a redemption price equal to100% of the principal amount of the 2013 Revenue Bonds to be redeemed, plus accrued interest to theRedemption Date.
Maturity Date Interest Principal Maturity Date Interest Principal
(January 1) Rate/Yield Amount (January 1) Rate/Yield Amount
2027 5.000% 23,560$ 2034 5.000% 33,355$
2027 4.125% 845 2034 4.625% 810
2028 5.000% 25,615 2035 5.000% 35,870
2029 5.000% 26,895 2036 5.000% 37,660
2030 5.000% 28,070 2037 5.000% 36,540
2030 4.500% 170 2038 4.750% 3,000
2031 5.000% 29,650 2038 5.000% 41,515
2032 4.500% 31,135 2039 5.000% 43,590
2033 5.000% 32,535 2040 5.000% 45,770
Total par value of 2013 Revenue Bonds 476,585
Add: unamortized bond premium 10,779
Total 2013 Revenue Bonds, net 487,364$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 39
Note 12. Funded and Long-Term Debt (Continued)
Maturities of Principal and Interest on Bonds: The following presents the principal and interest due on allbonds outstanding as of September 30, 2015 (assuming the letter of credit agreements with respect tothe variable rate 2008 and 2010 Revenue Refunding Bonds are renewed over the term of the bonds andthe bonds are remarketed):
* does not include the net swap payments on the Authority’s hedged variable rate bonds (Note 4)
The interest on variable rate debt is computed using the interest rate effective at December 31, 2014.The interest rates on the Authority’s variable rate debt are set by the remarketing agent and are resetweekly.
Interest on all of the Authority’s fixed rate debt (revenue bonds and port district project bonds issued in1999, 2010, 2012 and 2013) is payable semi-annually on January 1 and July 1 in each year. Interest onthe 2008 and 2010 Revenue Refunding Bonds is payable monthly on the first business day of eachmonth. The Authority is current on all of its monthly debt service payments on all obligations.
LOC Renewal/Replacement History: In March 2013, the letters of credit supporting the 2010 variable ratebonds were replaced with new letters of credit from Royal Bank of Canada (Series A), Barclay’s BankPLC (Series B), and The Bank of New York Mellon (Series C), which expire in March 2016, March 2015,and March 2016, respectively. If the letter of credit agreements supporting the 2010 Series A and SeriesC variable rate bonds are not renewed in 2016 and the 2010 Series A and Series C bonds aremandatorily redeemed, the 2016 debt service requirements will be $206,595, rather than the $50,010shown in the table above. On February 18, 2015, Barclays Bank PLC (Series B) delivered a “Notice ofExtension” to TD Bank (trustee for bonds), to extend the “stated Expiration Date” in the LOC to March 20,2018.
In June 2013, the letters of credit supporting the 2008 variable rate bonds were renewed and extendedwith Bank of America, N.A. and TD Bank, N.A. to July 2016 and December 2017, respectively. If theletter of credit agreements supporting the 2008 variable rate bonds are not renewed in 2016 and 2017and the 2008 bonds are mandatorily redeemed, the 2016 debt service requirements will be $169,195,rather than the $50,010 shown in the table above and the 2017 debt service requirements will be$174,980, rather than the $52,870 shown in the table above.
Years Ending December 31, Principal Interest * Total
2016 $50,010 $47,793 $97,803
2017 52,870 47,163 100,033
2018 55,865 46,496 102,361
2019 59,050 45,787 104,837
2020-2024 348,915 217,810 566,725
2025-2029 301,535 191,583 493,118
2030-2034 260,575 135,596 396,171
2035-2039 332,035 62,284 394,319
2040 76,690 1,917 78,607
1,537,545 796,429$ 2,333,974$
Net unamortized bond discounts and premiums 26,152
1,563,697$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 40
Note 12. Funded and Long-Term Debt (Continued)
Debt Authorized but not Issued: At its August 2013 meeting, the Authority’s Board authorized theissuance, sale and delivery of up to $550,000 in taxable or tax-exempt fixed rate bonds, to fund the 5-year 2013 Capital Plan (DRPA-13-094). This resolution rescinded and repealed all prior resolutions(DRPA-09-064 and DRPA-13-030) and any prior inconsistent resolutions. In December 2013, theAuthority issued $476,600 in fixed rate bonds (the 2013 Revenue Bonds) based on this resolution. As ofSeptember 30, 2015, approximately $73,400 remains as authorized, but not issued.
Bond Ratings:
Moody’s Investors Service Bond Ratings (Moody’s): Concurrent with the issuance of the $153,030 in PortDistrict Project Refunding Bonds, on November 30, 2012, Moody’s affirmed the ratings on all AuthorityRevenue and Port District Project Bonds; however, the outlook improved from “negative” to “stable” on allbonds. (This represented the first change in Moody’s ratings since it had assigned a “negative” outlookon all the Authority’s bonds in March of 2010).
Concurrent with the Authority’s issuance of the $476,600 in new revenue bonds, in its report datedNovember 22, 2013; Moody’s assigned a rating of “A3” to the 2013 Revenue Bonds, and affirmed itsexisting ratings on all Authority bonds (revenue bonds at “A3”, port district bonds at “Baa3”). The outlookremains at “stable” for all bonds. As of September 30, 2015 these ratings and outlook remain in place.
Standard & Poor’s Ratings Services Bond Ratings (S&P): Concurrent with the issuance of $153,030 inPort District Project Refunding Bonds, on November 30, 2012, S&P affirmed the ratings on all AuthorityRevenue and Port District Project Bonds; however, the outlook improved from “stable” to “positive” on allbonds. (This represented the first change in S&P’s ratings outlook since it had assigned a “stable”outlook on all the Authority’s bonds in July 2009).
Concurrent with the Authority’s issuance of $476,600 in new revenue bonds, in its report dated November27, 2013, S&P assigned a rating of “A” on the new series, and upgraded the Authority’s ratings on both itsrevenue and refunding bonds (from “A-“ to “A”) and on its port district project bonds (from “BBB-“ to“BBB”). The outlook is “stable” for all Authority bonds.
On December 23, 2014, S&P reaffirmed the Authority’s ratings for all of its Revenue/ Revenue Refundingand Port District Project bonds, at “A” and “BBB,” respectively, with a stable outlook. As of September 30,2015, these ratings, and outlook, remained unchanged.
Ratings on Jointly Supported Transactions, 2008 Revenue Refunding Bonds: Moody’s Investors Service(“Moody’s”) and Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.(“S&P”), initially assigned their municipal bond ratings to the 2008 Revenue Refunding Bonds based uponthe understanding that upon delivery of the 2008A Revenue Refunding Bonds or 2008B RevenueRefunding Bonds, the respective Letter of Credit securing the payment when due of the principal of, orpurchase price of 2008A Revenue Refunding Bonds or 2008B Revenue Refunding Bonds tendered forpurchase and not otherwise remarketed and interest on the 2008A Revenue Refunding Bonds or 2008BRevenue Refunding Bonds will be delivered by Bank of America, N.A. and TD Bank, N.A., respectively.
The long-term ratings assigned by Moody’s and S&P reflect each organization’s approach to rating jointlysupported transactions and are based upon the Direct Pay Letters of Credit provided by Bank of America,N.A. for the 2008A Revenue Refunding Bonds and TD Bank, N.A. for the 2008B Revenue RefundingBonds. Since a loss to a bondholder of a 2008A Revenue Refunding Bond or a 2008B RevenueRefunding Bond would occur only if both the bank providing the applicable Letter of Credit and theAuthority default in payment, Moody’s and S&P have assigned a long-term rating to the 2008 RevenueRefunding Bonds based upon the joint probability of default by both applicable parties.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 41
Note 12. Funded and Long-Term Debt (Continued)
Ratings on Jointly Supported Transactions, 2008 Revenue Refunding Bonds: (Continued): Set forth in thefollowing chart are the jointly supported long term and short term ratings on the 2008 Revenue RefundingBonds as of September 30, 2015:
Long-term Short-term2008A Revenue Refunding Bonds Moody’s: A1 VMIG 1
S&P AAA A-1
2008B Revenue Refunding Bonds Moody’s Aa1 VMIG 1S&P AAA A-1+
No provider of a Letter of Credit is obligated to maintain its present or any other credit rating andshall have no liability if any such credit rating is lowered, withdrawn, or suspended
Ratings on Jointly Supported Transactions, 2010 Revenue Refunding Bonds: Moody’s and S&P, initiallyassigned their municipal bond ratings to the 2010 Revenue Refunding Bonds based upon theunderstanding that upon delivery of the 2010A Revenue Refunding Bonds, the 2010B RevenueRefunding Bonds or the 2010C Revenue Refunding Bonds, the respective Letter of Credit securing thepayment when due of the principal of, or purchase price of the 2010A Revenue Refunding Bonds, the2010B Revenue Refunding Bonds or the 2010C Revenue Refunding Bonds tendered for purchase andnot otherwise remarketed and interest on the 2010A Revenue Refunding Bonds, the 2010B RevenueRefunding Bonds or the 2010C Revenue Refunding Bonds would be delivered by JPMorgan Chase Bank,N.A., Bank of America, N.A. and PNC Bank, N.A. respectively. In 2013, the existing Direct Pay Letters ofCredit provided by JPMorgan Chase Bank, N.A., Bank of America, N.A. and PNC Bank, N.A. werereplaced with Direct Pay Letters of Credit provided by Royal Bank of Canada, Barclays Bank PLC andThe Bank of New York Mellon, respectively.
The long-term ratings assigned by Moody’s and S&P reflect each organization’s approach torating jointly supported transactions and are based upon the Direct Pay Letters of Credit provided byRoyal Bank of Canada for the 2010A Revenue Refunding Bonds, Barclays Bank PLC for the 2010BRevenue Refunding Bonds and The Bank of New York Mellon for the 2010C Revenue Refunding Bonds.Since a loss to a bondholder of a 2010A Revenue Refunding Bond, a 2010B Revenue Refunding Bond ora 2010C Revenue Refunding Bond would occur only if both the bank providing the applicable Letter ofCredit and the Authority default in payment, Moody’s and S&P have assigned a long-term rating to the2010 Revenue Refunding Bonds based upon the joint probability of default by both applicable parties.
Set forth in the following chart are the jointly supported long term and short term ratings on the2010 Revenue Refunding Bonds as of September 30, 2015:
Long-term Short-term2010A Revenue Refunding Bonds Moody’s: Aa3 VMIG 1
S&P AAA A-1+
2010B Revenue Refunding Bonds Moody’s A1 VMIG 1S&P AAA A-1+
2010C Revenue Refunding Bonds Moody’s Aa1 VMIG 1S&P AAA A-1+
No provider of a Letter of Credit is obligated to maintain its present or any other credit rating andshall have no liability if any such credit rating is lowered, withdrawn, or suspended.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 42
Note 13. Conduit Debt Obligations
The Authority is authorized to plan, finance, develop, acquire, construct, purchase, lease, maintain,market, improve and operate any project within the Port District including, but not limited to, any terminal,terminal facility, transportation facility, or any other facility of commerce or economic development activity,from funds available after appropriate allocation for maintenance of bridge and other capital facilities.Utilizing this authorization, the Authority has issued certain debt bearing its name to lower the cost ofborrowing for specific governmental entities. This debt is commonly referred to as conduit (or non-commitment) debt. Typically, the debt proceeds are used to finance facilities within the Authority’sjurisdiction that are transferred to the third party either by lease or by sale. The underlying lease ormortgage loan agreement, which serves as collateral for the promise of payments by the third party, callsfor payments that are essentially the same as collateral for the promise of payments by the third party,calls for payments that are essentially the same as those required by the debt. These payments are madeby the third-party directly to an independent trustee, who is appointed to service and administer thearrangement. The Authority assumes no responsibility for repayment of this debt beyond the resourcesprovided by the underlying leases or mortgage loans.
As of September 30, 2015, there was one series of Charter School Project Bonds outstanding, issued forthe LEAP Academy Charter School, Inc. The corresponding aggregate principal totaling $8,500 is treatedstrictly as conduit debt obligations under Interpretation No. 2 of the Governmental Accounting StandardsBoard (GASB) and accordingly is not included in the financial statements. The following schedule detailsthe series together with the amount outstanding:
In 2013, the Authority was advised by the bond trustee, and counsel for LEAP Academy, that LEAP hadlost its tax exemption for failure to file Form 990 for the past three years. LEAP bonds were issuedthrough the Authority; however, DRPA has no responsibility for repayment of this debt, as the debt isguaranteed by Rutgers University. After various appeals, in September 2013, the IRS rescinded its letterthereby fully reinstating LEAP’s tax exemption (see Note 20 – Subsequent Events related to theexecution of a refinancing related to these bonds in December 2015).
Note 14. Government Contributions for Capital Improvements, Additions and Other Projects
The Authority receives contributions in aid for financing capital improvements to the rapid transit systemfrom the Federal Transit Administration and other government agencies. Capital improvement grantfunds of $33,295 and $16,431 were received as of September 30, 2015 and December 31, 2014,respectively. The Authority receives federal and state grants for specific construction purposes that aresubject to review and audit by the grantor agencies. Although such audits could result in disallowancesunder terms of the grants, it is the opinion of management that any required reimbursements will not bematerial to the Authority’s net position.
12/31/13 12/31/14 09/30/15
Issue Issue Beginning Ending Ending
Issue Date Amount Balance Paid Balance Paid Balance
Charter School Project
Bonds, Series 2003 09/01/03 8,500$ 6,460$ (310)$ 6,150$ (244)$ 5,906$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
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Note 15. Contingencies
Public Liability claim exposures are self-insured by the Authority within its self-insured retention limit of $5million for each occurrence, after which, exists a $25 million limit of Claims Made Excess LiabilityInsurance per occurrence, and in the aggregate, to respond to any large losses exceeding the retention.The Authority, including DRPA and PATCO, self-insures the initial $1 million limit, per accident, forWorkers’ Compensation claims, after which a $5 million limit of Excess Workers’ Compensation insuranceis retained to respond to significant claims. (Note: PATCO was completely self-insured for Workers’Compensation claims until 2014 when DRPA-14-020 approved the purchase of Excess Workers’Compensation insurance for PATCO.) PATCO self-insures the initial $1 million limit, per accident, forWorkers’ Compensation claims, after which a $5 million limit of Excess Workers’ Compensation insuranceis retained to respond to significant claims.
The Authority is involved in various actions arising in the ordinary course of business and from Workers’Compensation claims. In the opinion of management, the ultimate outcome of these actions will not havea material adverse effect on the Authority’s combined net position and combined results of operations.
The Authority purchases commercial insurance for all other risks of loss, e.g. bridge and non-bridgeproperty, crime, terrorism, etc. The Authority reviews annually, and where appropriate, adjusts policy losslimits and deductibles as recommended by its insurance consultants in response to prevailing marketconditions, loss experience, and revenues. Policy loss limits are established with the professionalassistance of independent insurance broker consultants to ensure that sufficient coverage exists toaccommodate the maximum probable loss that may result in the ordinary course of business. In addition,the amounts of settlements for the last three years have not exceeded the insurance coverage providedin those years.
Per Article 5.11 of the 1998 Bond Indenture, the Authority must certify and submit to the bond trustee, byApril 30 of each year, that it has sufficient coverage with regards to “multi-risk insurance” (on DRPA andPATCO facilities), “use and occupancy insurance” (i.e., business interruption), etc. The Authoritysubmitted its annual certification to the bond trustee, prior to the deadline, in April 2014.
Note 16. Commitments
Development Projects: In support of previously authorized economic development projects, the DRPA’sBoard of Commissioners authorized loan guarantees to various banks to complete the financing aspectsof a particular project. The Authority’s Board authorized loan guarantees in an amount not to exceed$27,000, prior to 2011 when the Board stopped funding new economic development projects.
At year-end 2014, the Authority had two (2) outstanding loan guarantees with various banks, one with L3Communications (for $10,000) and the other with the Home Port Alliance. On February 6, 2015, theAuthority entered into a “Mutual Release of Guaranty” agreement with NJEDA, wherein both partiesreleased each other from any obligations under the DRPA guaranty.
Self-Insurance 2014
Beginning balance 3,687$
Incurred claims 3,484
Payment of claims (2,588)
Other - administrative fees, recoveries -
Ending balance 4,583$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
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Note 16. Commitments (Continued)
Home Port Alliance Guarantee (extended 2012): On June 6, 2012, the Authority negotiated a three-year extension of the existing $900 loan guarantee that supports a loan from TD Bank, N.A. to theHome Port Alliance for the Battleship New Jersey. The loan guarantee expired on June 6, 2015.
The Authority’s Board authorized the Authority to extend the loan guaranty for a ten-year period(DRPA-15-048). In July 2015, the previously Board-approved ten (10) year loan guarantee for $796was executed with TD Bank.
As of September 30, 2015, the Authority had only one loan guarantee, in the amount of $796, with HomePort Alliance outstanding. The Authority has made no cash outlays relating to this guarantee.
Community Impact: The Authority has an agreement with the City of Philadelphia (City) for CommunityImpact regarding the PATCO high-speed transit system (“Locust Street Subway Lease”). The agreementexpires on December 31, 2050. In 2015, the base amount payable to the City will total $3,281 asadjusted for the cumulative increases in the Consumer Price Index (CPI) between 1999 and 2014. Basepayments remaining in 2016 through 2018 shall equal the previous year’s base payment adjusted by anyincrease in the CPI for that year. For the years 2018 through 2050, the annual base payment shall equalone dollar.
In addition, for the duration of the lease, the Authority is required to annually create a PATCO CommunityImpact Fund in the amount of $500, with payment of such fund to be divided annually betweencommunities within the Commonwealth and the State, based on PATCO track miles in the respectivestates.
The estimated minimum commitment, adjusted for the effect of the increase in the CPI at September 30,2015, is as follows:
OCIP Letters of Credit: In May 2008, the Authority entered into two new separate irrevocable standbyLetters of Credit with TD Bank, N.A. (formerly Commerce Bank) and Wachovia Bank in support of theAuthority’s “Owner Controlled Insurance Program (OCIP).” Under this program, the Authority purchasedcoverage for all contractors working on major construction projects.
The Letter of Credit with Wells Fargo Bank (formerly Wachovia Bank) was for a four-year term in theamount of $5,000 with an expiration date of May 7, 2012. The Letter of Credit with TD Bank, N.A.(formerly Commerce Bank) was in an initial amount of $3,015 and automatically increased annually eachMay, in the amount of $816, until it expired on May 7, 2012.
Year Amount
2015 945$
2016 3,787
2017 3,827
2018 500
2019 500
Thereafter 15,500
25,059$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 45
Note 16. Commitments (Continued)
OCIP Letters of Credit (Continued): During 2012, the Authority extended its OCIP for a six-month period.As a consequence, in consultation with the insurance carrier, the Authority’s LOC requirement supportingthe program was reduced by $5,000. The Letter of Credit with TD Bank, N.A. was renewed on May 7,2012 in the amount of $5,462 to expire on December 31, 2013, and again renewed on December 11,2013 to expire December 31, 2014. The OCIP Letter of Credit with Wells Fargo Bank, in the amount of$5,000, was not renewed.
At its April 12, 2014 meeting, the Authority’s Board passed resolution DRPA-14-052 to extend the OCIPfrom June 30, 2014 to December 31, 2014. In December 2014, the Authority extended the $5,462 letterof credit with TD Bank, to expire on December 31, 2015.
As of September 30, 2015, the unused amount of the Letter of Credit totaled $5,462. No drawdownshave been made against any Letter of Credit.
Direct Pay Letters of Credit (2008 Revenue Refunding Bonds): The Authority’s 2008 Revenue RefundingBonds (Series A and B), are secured by irrevocable transferable Direct Pay Letters of Credit (DPLOC)issued by two credit providers, the Bank of America, N.A. and TD Bank, N.A., in the initial amounts of$172,600 and $191,800, respectively. The Authority entered into separate Reimbursement Agreementswith each credit provider to facilitate the issuance of said DPLOCs.
Each Letter of Credit is in an original stated amount which is sufficient to pay the unpaid principal amountof and up to fifty-three (53) days of accrued interest (at a maximum interest rate of 12%) on the related2008A Revenue Refunding Bonds or 2008B Revenue Refunding Bonds, when due, and the PurchasePrice of the 2008A Revenue Refunding Bonds or the 2008B Revenue Refunding Bonds tendered ordeemed tendered for purchase and not remarketed. The Credit Provider for the 2008A RevenueRefunding Bonds is only responsible for payments with respect to the 2008A Revenue Refunding Bondsfor which the 2008A Letter of Credit was issued and the Credit Provider for the 2008B RevenueRefunding Bonds is only responsible for payments with respect to the 2008B Revenue Refunding Bondsfor which the 2008B Letter of Credit was issued. The 2008A Letter of Credit and the 2008B Letter ofCredit were renewed in July of 2010 and which expired in July of 2013.
As described in the Official Statement for the 2008 Revenue Refunding Bonds, “any draw under Letter ofCredit for principal, interest or Purchase Price creates a reimbursement obligation on the part of theAuthority that is secured by the 1998 Revenue Bond Indenture on a parity basis with the 2008 RevenueRefunding Bonds.” (Additional information related to this transaction and the accompanying Letters ofCredit can be found under Note 12).
These letters of credit were renewed with the Bank of America, N.A. and TD Bank, N.A. in 2013. Thenew letters of credit with Bank of America, N.A. and TD Bank, N.A. expire on July 22, 2016 andDecember 31, 2017, respectively.
Letter of Credit Provider Ratings: Ratings for these banks as of September 30, 2015 are as follows:
* In April 2012, at the Authority’s request, Fitch Ratings assigned a rating of “A/F1” (stable outlook) to theAuthority’s 2008 Series A Revenue Refunding Bonds, based on the DPLOC support provided by theBank of America, N.A. (“A/F1”, stable outlook) on the bonds
Long-Term Short-Term
Moody's S&P Fitch * Moody's S&P Fitch *
Bank of America, N.A. (Series A) A2 A- A P-1 A-2 F1
Stable Negative Negative
TD Bank, N.A. (Series B) Aa1 AA- AA- P-1 A-1+ F1+
Stable Negative Stable
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
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Note 16. Commitments (Continued)
Direct Pay Letters of Credit (2010 Revenue Refunding Bonds): The Authority’s 2010 Revenue RefundingBonds (Series A, B and C), were secured by irrevocable transferable Direct Pay Letters of Credit(DPLOC) issued by three credit providers, the Bank of America, N.A., JP Morgan Chase Bank, N.A. andPNC Bank, N.A. in the initial amounts of $152.6 million, $152.6 million and $50.9 million, respectively.The Authority entered into separate Reimbursement Agreements with each credit provider to facilitate theissuance of said DPLOCs. These DPLOC’s were terminated in March 2013, and replaced with newletters of credit from Royal Bank of Canada (Series A), Barclay’s Bank PLC (Series B), and Bank of NewYork Mellon (Series C). Those letters of credit have an expiration of March 18, 2016, March 20, 2015,and March 18, 2016, respectively. On February 18, 2015, Barclays Bank PLC (Series B) delivered a“Notice of Extension” to TD Bank (trustee for bonds), to extend the “stated Expiration Date” for the LOC toMarch 20, 2018.
Each Letter of Credit is an irrevocable transferable direct-pay obligation of the respective issuing CreditProvider to pay to the Trustee, upon request and in accordance with the terms thereof, amounts sufficientto pay the unpaid principal amount and up to fifty-three (53) days (or such greater number of days asrequired by the rating agencies) days’ accrued interest (at the maximum interest rate of 12%) on therelated 2010 A Revenue Refunding Bonds, 2010 B Revenue Refunding Bonds or 2010 C RevenueRefunding Bonds when due, whether at the stated maturity thereof or upon acceleration or call forredemption, and amounts sufficient to pay the Purchase Price of the 2010 A Revenue Refunding Bonds,the 2010 B Revenue Refunding Bonds or the 2010 C Revenue Refunding Bonds, as applicable, tenderedfor purchase and not remarketed. A draw under a Letter of Credit for principal and interest or PurchasePrice creates a Reimbursement Obligation (as defined in the 1998 Revenue Bond Indenture) on the partof the Authority.
Letter of Credit Provider Ratings: Ratings for these banks as of September 30, 2015 are as follows:
Long-Term Short-Term
Moody's S&P Fitch Moody's S&P Fitch *
Royal Bank of Canada Aa3 AA- AA P-1 A-1+ F1+
Negative Negative Stable
Barclay's Bank PLC A2 A- A P-1 A-2 F1
Negative Stable Stable
Bank of New York Mellon Aa2 AA- AA- P-1 A-1+ F-1+
Stable Stable Stable
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
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Note 16. Commitments (Continued)
Contractual Commitments: As of September 30, 2015 the Authority had board-approved contracts withremaining balances as follows:
Total
Benjamin Franklin Bridge:
Bridge and pavement repairs and inspection 7,811$
Temporary toll, clerical, administration and custodial workers 2,112
Toll revenue, transportation, processing and systems upgrade 6,265
ERP consulting services 10,420
Engineering services - program management and task orders 17,475
Other 5,875
Walt Whitman Bridge:
Camera installation 75
Deck design, construction, rehabilitation and inspection 2,912
Suspension span stiffening 128,643
Suspension rope investigation and painting 57,117
Toll plaza substructure and pavement repair 6,321
Commodore Barry Bridge:
Bridge painting phase I & II 13,983
Structural repairs and pavement markings 132
Admininistration building switchgear replacement 523
Betsy Ross Bridge:
Resurfacing design services, structural repairs and inspection 14,343
PATCO System:
Car overhaul program 115,807
Track rehabilitation across Ben Franklin Bridge 10,784
Emergency generator rectifier replacement 2,369
Westmont viaduct and track rehabilitation 11,969
Other 4,311
Other:
One Port Center remedial investigation 202
Other equipment and system upgrades and maintenance 1,152420,600$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 48
Note 17. Bridge and PATCO Fare Schedules
Bridge Fares: On July 1, 2011, the approved new bridge toll schedule was implemented as follows:
Class 1 - Motorcycle 5.00$Class 2 - Automobile 5.00Class 3 - Two Axle Trucks 15.00Class 4 - Three Axle Trucks 22.50Class 5 - Four Axle Trucks 30.00
Class 6 - Five Axle Trucks 37.50Class 7 - Six Axle Trucks 45.00Class 8 - Bus 7.50Class 9 - Bus 11.25Class 10 - Senior Citizen (with 2 tickets only) 2.50Class 13 - Auto with Trailer (1 axle) 8.75
PATCO Passenger Fares: On July 1, 2011, a new fare schedule was implemented as follows:
As noted above, PATCO has a federally mandated reduced off-peak fare program for “elderly personsand persons with disabilities.” These off-peak rates increased from $0.62/trip to $0.70/trip.
In December 2014, the Authority’s Board of Commissioners passed DRPA-14-147 (DRPA ResolutionAuthorizing Deferral of Biennial CPI toll increase) which deferred the CPI-indexed biennial toll increasefrom January 1, 2015 to January 1, 2017 (See Note. 20, Subsequent Events for further informationrelated to the toll schedule).
Note 18. New Governmental Accounting Pronouncements
The Governmental Accounting Standards Board (GASB) has issued several statements that haveeffective dates that may impact future financial presentations. Management has not completed theprocess of evaluating the impact the following statements will have on the financial statements but hasdetermined that the effect of implementing GASB Statements No. 68 and No. 71 will be material to thefinancial statements.
GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of GASBStatement No. 27, issued in June 2012, will be effective for the Authority beginning with the year endingDecember 31, 2015. This statement replaces the requirements of Statement No. 27, Accounting forPensions by State and Local Governmental Employers and Statement No. 50, Pension Disclosures, asthey relate to governments that provide pensions through pension plans administered as trusts or similararrangements that meet certain criteria. Statement 68 requires governments providing defined benefitpensions to recognize their long-term obligation for pension benefits as a liability for the first time, and tomore comprehensively and comparably measure the annual costs of pension benefits. The Statementalso enhances accountability and transparency through revised and new note disclosures and requiredsupplementary information (RSI).
Lindenwold/Ashland/Woodcrest 3.00$
Haddonfield/West Haddonfield/Collingswood 2.60
Ferry Avenue 2.25
New Jersey 1.60
City Hall/Broadway/Philadelphia 1.40
Off-Peak Reduced Fare Program 0.70
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
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Note 18. New Governmental Accounting Pronouncements (Continued)
GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to Measurement Date,issued in November 2013, will be effective for the Authority beginning with the year ending December 31,2015. This statement amends paragraph 137 of GASB Statement No. 68 to require that, at transition, agovernment recognize a beginning deferred outflow of resources for its pension contributions, if any,made subsequent to the measurement date of the beginning net pension liability. GASB Statement No.68, as amended, continues to require that beginning balances for other deferred outflows of resourcesand deferred inflows of resources related to pensions be reported at transition only if it is practical todetermine all such amounts. The provisions of GASB Statement No. 71 should be appliedsimultaneously with the provisions of GASB Statement No. 68.
In 2013, the Authority adopted GASB Statement No. 61, The Financial Reporting Entity: Omnibus anamendment of GASB Statements No. 14 and No. 34. This Statement is intended to improve financialreporting for a governmental financial reporting entity by improving guidance for including, presenting,and disclosing information about component units and equity interest transactions of a financial reportingentity.
Note 19. Blended Component Unit
In 2013, the Authority adopted GASB Statement No. 61, The Financial Reporting Entity: Omnibus anamendment of GASB Statements No. 14 and No. 34. This Statement intended to improve financialreporting for a governmental financial reporting entity by improving guidance for including, presenting,and disclosing information about component units and equity interest transactions of a financial reportingentity.
Port Authority Transit Corporation (PATCO) is a wholly-owned subsidiary of the DRPA, established tooperate and maintain the rapid transit system owned and constructed by DRPA. PATCO and DRPAshare the same Board of Commissioners. A financial benefit or burden relationship exists between DRPAand PATCO as DRPA subsidizes the losses of PATCO and intends to continue to do so. The financialresults of PATCO have been blended with those of DRPA in the financial statements.
Rent of Transit System Facilities: All rapid transit system facilities used by PATCO are leased from theAuthority, under terms of an agreement dated April 18, 1969 and amended June 3, 1974. The leaserequires PATCO to operate and maintain the Locust-Lindenwold line. The terms of the amendedagreement, which was made retroactive to January 1, 1974, and which is to continue from year to year,provide that PATCO pay a minimum annual rental of $6,122, which approximates the sum of the annualinterest expense to the Authority for that portion of its indebtedness attributable to the construction andequipping of the leased facilities plus the provision for depreciation of the rapid transit facilities asrecorded by the Authority. In addition, the lease requires PATCO to pay to the Authority any net earningsfrom operations for the Locust-Lindenwold line less a reasonable amount to be retained for workingcapital and operating reserves.
PATCO’s outstanding liability to the DRPA for period January 1, 1974 to September 30, 2015 related tothis agreement totals $255,443.
Net Position: The net position totaling ($664,449) and ($644,424) as of September 30, 2015 andDecember 31, 2014, respectively, represents the total losses for PATCO since inception.
Condensed combining financial information applicable to DRPA and PATCO as of and for the periodending September 30, 2015 is as follows:
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
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Note 19. Blended Component Unit (Continued)
September 30, 2015
DRPA PATCO Total
Current assets 747,331$ 13,202$ 760,533$
Receivable from primary government (878) 878
Noncurrent assets 170,771 170,771
Capital assets 1,407,483 1,407,483
Other assets 15,589 15,589
Total assets 2,340,297 14,080 2,354,377
Deferred outflows of resources 127,125 127,125
Total assets and deferred outflows of resources 2,467,423 14,080 2,481,503
Current liabilities 99,326.30 6,484 105,810
Payables to primary government:
Lease agreement (255,443) 255,443
Advances from DRPA (402,688) 402,688
Noncurrent liabilities 1,690,351 13,914 1,702,862
Total liabilities 1,130,143 678,529 1,808,672
Net investment in capital assets 170,796 170,796
Restricted 185,605 185,605
Unrestricted 980,878 (664,449) 316,429
Total net position 1,337,279$ (664,449)$ 672,831$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 51
Note 19. Blended Component Unit (Continued)
Condensed combining financial information applicable to DRPA and PATCO as of and for the periodended September 30, 2015 is as follows (continued):
September 30, 2015
DRPA PATCO Total
Operating revenues
Bridge revenues 234,863$ - 234,863$
Transit systems - 19,626 19,626
Other 30 - 30
Total operating revenues 234,893 19,626 254,519
Operating expenses
Operations 69,998 37,483 107,482
Depreciation 43,035 43,035
Total operating expenses 113,033 37,483 150,517
Operating income 121,859 (17,857) 104,002
Nonoperating revenues (expenses)
Interest expense (59,820) (59,820)
Economic development activities (1,330) (1,330)
Lease rental 4,591 (4,591)
Other 6,415 2,424 8,839
Total nonoperating revenues (expenses) (50,144) (2,167) 52,311
Capital contributions 33,295 - 33,295
Change in net position 105,010 (20,025) 84,986
Net position, January 1 1,232,269 (644,424) 587,845
Net position, September 30 1,337,279$ (664,449)$ 672,831$
September 30, 2015
DRPA PATCO Total
Net cash provided by (used in) operating activities 144,431$ (16,499)$ 127,932$
Net cash provided by (used in) capital and non
capital related financing activities (196,861) 18,357 (178,504)
Net cash provided by (used in) investing activities 48,749 - 48,749
Net increase in cash and cash equivalents (3,681) 1,857 (1,823)
Cash and cash equivalents, January 1 33,234 1,062 34,296
Cash and cash equivalents, September 30 29,554$ 2,919$ 32,472$
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 52
Note 19. Blended Component Unit (Continued)
Condensed combining financial information applicable to DRPA and PATCO as of and for the year endedDecember 31, 2014 is as follows:
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 53
Note 19. Blended Component Unit (Continued)
Condensed combining financial information applicable to DRPA and PATCO as of and for the year endedDecember 31, 2014 is as follows (continued):
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 54
Note 20. Subsequent Events
Status of Union Labor Negotiations: The status of contract negotiations with four (4) unions is describedbelow:
1.) IUOE: The collective bargaining agreement between the Authority and the IUOE expired onDecember 31, 2012. Employees continue to work with an expired contract while contractnegotiations are ongoing.
2.) FOP Contract: The second largest labor organization representing Authority personnel is FOPLocal 30 (representing Authority and PATCO patrol officers, corporals and sergeants). The partiesconcluded interest arbitration litigation in the Federal District Court, Camden, New Jersey andreceived the interest arbitration decision on February 24, 2015. A finalized contract is forthcoming.
In its November 18, 2015 meeting, the Authority’s Board approved a Collective BargainingAgreement (CBA), which has been approved by FOP Lodge 30 (DRPA-15-145). The contractcovers the period from January 1, 2010 through December 31, 2017.
3.) Teamsters: PATCO has a collective bargaining agreement with Teamsters’ Union Local 676,representing operating and maintenance personnel at PATCO, which expired on May 31, 2011.Currently the parties are involved in contract negotiations and the employees continue to work withan expired contract.
4.) IBEW: The collective bargaining agreement with the IBEW expired by its terms on December 31,2011. Employees continue to work with an expired contract while contract negotiations areongoing. The collective bargaining agreement between the Authority and the IUOE expired onDecember 31, 2012. Employees continue to work with an expired contract while contractnegotiations are ongoing.
The collective bargaining agreement between the Authority and the IUOE expired on December31, 2012. Employees continue to work with an expired contract while contract negotiations areongoing.
Federal Subpoena: The Authority was served with a Federal Grand Jury Subpoena in March 2013 requiringdocument production concerning economic development spending from 2008. The Authority retainedSpecial Counsel, fully cooperated, and has been open and transparent in providing responsive information.Compliance costs and counsel fees were significant, but did not materially impact the Authority's financialposition. On March 31, 2015, the Authority was granted permission by the government to lift the litigationhold in this matter. There has been no recent activity.
Reinstitution of Commuter E-ZPass Discount: At its July 2015 meeting, the Authority’s Board approved aresolution DRPA 15-090 (“Authorize Amendment to Current DRPA Bridge Toll Schedule to IncludeDiscounted Tolling for Certain Passenger Vehicles Making Minimum Number of Tolled-Crossings overDRPA Bridges and Related Actions”), to re-implement an $18 credit/18 trips per month for commuterpassenger vehicles in the NJ E-ZPass system (the Authority is a member of thisconsortium.). Programming to implement this initiative was finalized and the new commuter discountbecame effective on December 1, 2015. The projected reduction in revenues will be approximately $6.4million annually, if fully implemented.
NOTES TO COMBINED FINANCIAL STATEMENTSFor the Period Ended September 30, 2015 (Dollars in Thousands)
Page 55
Note 20. Subsequent Events (Continued)
Conduit Financing – DRPA LEAP Academy University Charter School Bonds, Series 2003: LEAPAcademy has elected to optionally redeem the DRPA Charter School Project Bonds of 2003 in order toreduce its borrowing costs. (The Authority opted not to participate in this refinancing effort so theredeemed bonds were replaced with bonds issued through another agency).
On September 3, LEAP issued a conditional “Borrower’s Notice of Redemption” which was sent to theBond Trustee, indicating its intention to redeem the remaining $5.825 million in principal outstanding onthe bond issue, on October 6, 2015. On October 6, these bonds were fully redeemed and are no longeroutstanding.
Economic Development Loan (LEAP Academy) – LEAP Academy fully paid off the principal and interest(in the amount of $1.01 million) due on its existing loan with the Authority in December, 2015.
2015 OPEB Contribution- In December the Authority contributed $5.0 million to its OPEB Trust. Inaddition, at its December Board meeting, the Authority authorized up to a $ 5 million contribution to theOPEB trust in its 2016 budget
Passage of DRPA/PATCO Operating Budgets and 5-Year Capital Plan: At its December meeting, theAuthority’s Board approved the DRPA and PATCO operating budgets in the amounts of $93.6 million and$54.5 million, respectively.
As required by its Bond Indentures, the Authority filed “annual budgets” with its two bond trustees for itsRevenue and Revenue Refunding Bonds, and its Port District Project Bond issues prior to the December31, 2015 deadline. In addition the Authority filed a resolution with TD Bank Securities certifying that itwould exceed the calculated “Net Revenue Requirement” for both 2015 and 2016, by an estimated $69.4million and $50.4 million, respectively.
In November, the Authority’s Board passed the 5-year capital plan, which authorizes capital expendituresnot-to-exceed $166.5 million (net of federal and other grants) during 2016. (Estimated grant funding for2016 is approximately $18.9 million) The total 5-year capital plan estimates $728.2 million in total netcapital expenditures in the period 2016 through 2020.
Note: The 2016 DRPA and PATCO operating budgets and the 2016 Capital Plan can be found onDRPA’s website, www.drpa.org, in the “About Us” section and the subsection “Budget/FinancialInformation.”
Schedule 1
REVENUE FUND:
Cash on hand:
Change funds for bridges $18,500.00
Undeposited tolls and ticket sales 1,317,735.74 1,336,235.74
Santander 4,872.25
TD Bank N.A. 1,726,825.15
Bank of America 519,450.38
Bank Of New York Mellon 521.55
Wells Fargo Bank 154,304.76 $3,742,209.83
1998 PORT DISTRICT PROJECT FUND:
Santander 4,107.65
1999 PORT DISTRICT PROJECT FUND:
Wells Fargo Bank 473,157.54
1999 PROJECT FUND:
Santander 59,565.78
GENERAL FUND:
Cash on hand - change and working funds for PATCO Transit
System Stations 229,562.61
Wells Fargo Bank 838,738.04
Santander 37,312.48
Bank Of New York Mellon 141,935.63
TD Bank N.A. 26,945,891.79 28,193,440.55
Total $32,472,481.35
September 30, 2015CASH & CASH EQUIVALENTS
DELAWARE RIVER PORT AUTHORITY
Page 56
Schedule 2
Par Value Fair Value
REVENUE FUND:
AIM Money Market $ 13,913,077 13,913,077
Mellon Bank Money Market 1,057,000 1,057,000
$ 14,970,077 14,970,077
MAINTENANCE RESERVE FUND (Restricted):
Goldman Sachs Money Market $ 4,578,132 4,836,880
1999 PDP DEBT SERVICE FUND (Restricted):
Federated Treasury Cash Series II $ 3,418,705 3,418,705
2012 PDP DEBT SERVICE FUND (Restricted):
Goldman Sachs Money Market $ 6,292,807 6,292,807
2010 DEBT SERVICE FUND (Restricted):
Goldman Sachs Money Market $ 3,858,451 3,858,451
2013 DEBT SERVICE FUND (Restricted):
Goldman Sachs Money Market $ 5,916,208 5,916,208
2008 DEBT SERVICE FUND (Restricted):
Goldman Sachs Money Market $ 14,266,846 14,266,846
1998B BOND RESERVE FUND (Restricted):
Goldman Sachs Money Market $ 77,182,646 77,182,646
Abbey National N.A. Paper due 01/04/16 (includes accrued interest) 40,830,000 40,233,383
$ 118,012,646 117,416,030
2010 REVENUE REFUNDING DEBT SERVICE FUND (Restricted):
Goldman Sachs Money Market $ 16,489,565 16,489,565
2012 PORT DISTRICT DEBT SERVICE RESERVE FUND (Restricted):
Abbey National N.A. Paper due 01/04/2016 (includes accrued interest) $ 10,745,000 10,587,992
Goldman Sachs Treasury Obligation Money Market 8,668,753 8,668,753
$ 19,413,753 19,256,744
GENERAL FUND:
AIM Money Market $ 75,085,878 75,085,878
PFM Cash Reserve Money Market 696,944 696,944
UBS Investments 35,187,643 32,133,284
Morgan Stanley / Dean Witter Investments 28,344,768 27,033,377
Swarthmore Group Investments 53,975,484 54,083,863
Haverford Trust Investments 11,973,229 5,426,387
Haverford Trust C/D 6,408,963 6,408,963
TD Bank Investment Account 13,642,020 13,642,020
WF Cap Res Pay-as-You-Go Money Market 264,359,037 264,359,037
US Treasury Bills due 07/01/15 2,655,629 2,655,000
Unrealized loss on investments 2,262,514 (2,262,514)
$ 494,592,110 479,262,239
DELAWARE RIVER PORT AUTHORITYINVESTMENTS
September 30, 2015
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Schedule 2
DELAWARE RIVER PORT AUTHORITYINVESTMENTS
September 30, 2015
1998 PORT DISTRICT PROJECT FUND:
PFM Cash Reserve Money Market $ 312 312
1999 PORT DISTRICT PROJECT FUND
Goldman Sachs Money Market $ 14,126,323 14,126,323
2001 PORT DISTRICT PROJECT FUND:
Goldman Sachs Money Market $ 949,629 949,629
2013 REVENUE BOND PROJECT FUND:
Wells Fargo Money Markets $ 170,771,285 170,771,285
Total investments $ 887,656,850 871,832,102
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DELAWARE RIVER PORT AUTHORITYSchedule 3
INTEREST INCOME BY FUND
Period Ended
9/30/2015 9/30/2014
Revenue Fund $273,009 $270,078
Maintenance Reserve Fund 148,355 146,954
1998 Port Project Fund 0 1
1999 Port Project Fund 654 880
2001 Port Project Fund 44 60
1998 Port District Debt Service Fund 165 165
2010 Debt Service Fund A, B, C 379 363
2010 Debt Service Fund D 216 179
1998 Bond Reserve Fund 1,761,998 1,762,153
2012 Port Debt Service Reserve Fund 463,165 463,157
2008 Debt Service Fund 328 316.83
2013 Project Fund 137,670 120,841
2013 Debt Service Fund 215 226
General Fund 3,256,300 1,820,295
6,042,497 4,585,669
Page 59
Schedule 4
Period Ended Second Quarter
9/30/2015 9/30/2014 2015 2014
BENJAMIN FRANKLIN BRIDGE
Operating revenues:
Bridge tolls $73,466,287.74 $74,185,878.10 $24,873,256.51 $25,611,550.55
Other 4,899,599.76 6,155,230.19 1,499,765.49 996,560.90
Total operating revenues 78,365,887.50 80,341,108.29 26,373,022.00 26,608,111.45
Operating expenses 12,199,131.31 10,447,591.50 4,722,223.41 2,715,921.95
Net operating revenues $66,166,756.19 $69,893,516.79 $21,650,798.59 $23,892,189.50
WALT WHITMAN BRIDGE
Operating revenues:
Bridge tolls $91,929,451.97 $87,060,036.22 $33,866,053.43 $32,239,605.94
Other 205,291.31 210,779.30 69,571.66 66,651.32
Total operating revenues 92,134,743.28 87,270,815.52 33,935,625.09 32,306,257.26
Operating expenses 11,965,491.70 11,471,432.04 4,699,806.62 3,954,322.81
Net operating revenues $80,169,251.58 $75,799,383.48 $29,235,818.47 $28,351,934.45
COMMODORE BARRY BRIDGE
Operating revenues:
Bridge tolls $39,054,390.14 $37,247,324.72 $14,480,817.39 $13,841,535.71
Other 0.00 0.00 0.00 0.00
Total operating revenues 39,054,390.14 37,247,324.72 14,480,817.39 13,841,535.71
Operating expenses 5,397,697.54 5,643,047.99 2,000,390.17 2,188,641.78
Net operating revenues $33,656,692.60 $31,604,276.73 $12,480,427.22 $11,652,893.93
BETSY ROSS BRIDGE
Operating revenues:
Bridge tolls $25,307,496.20 $24,631,955.97 $8,815,789.99 $8,615,468.09
Other 0.00 0.00 0.00 0.00
Total operating revenues 25,307,496.20 24,631,955.97 8,815,789.99 8,615,468.09
Operating expenses 5,897,443.16 5,767,624.43 2,300,875.13 2,012,897.83
Net operating revenues $19,410,053.04 $18,864,331.54 $6,514,914.86 $6,602,570.26
COMBINED TOTALS
Operating revenues:
Bridge tolls $229,757,626.05 $223,125,195.01 $82,035,917.32 $80,308,160.29
Other 5,104,891.07 6,366,009.49 1,569,337.15 1,063,212.22
Total operating revenues 234,862,517.12 229,491,204.50 83,605,254.47 81,371,372.51
Operating expenses 35,459,763.71 33,329,695.96 13,723,295.33 10,871,784.37
Net operating revenues $199,402,753.41 $196,161,508.54 $69,881,959.14 $70,499,588.14
DELAWARE RIVER PORT AUTHORITYBRIDGE REVENUES AND OPERATING EXPENSES
FOR THE PERIODS INDICATED
Page 60
Schedule 5
2015 YTD Activity
Period Ended (New Loans and
09/30/15 12/31/14 Principal Payments)
ECONOMIC DEVELOPMENT LOANS:
Cooper River Boathouse 670,839$ 706,016$ (35,176)$
Camden Yards Steel Co. -$ -$ -$
LEAP Academy 1,029,110$ 1,212,665$ (183,556)$
Victor Lofts -$ 2,976,762$ (2,976,762)$
Camden Aquarium 13,836,485$ 14,188,179$ (351,694)$
Home Line Furniture 177,458$ 204,206$ (26,748)$
Total Loans 15,713,892$ 19,287,828$ (3,573,935)$
Provision for loan losses (1,344,551)$ (1,344,551)$ -$
Total Loans per Balance Sheet - Net 14,369,342$ 17,943,277$ (3,573,935)$
DELAWARE RIVER PORT AUTHORITY
ECONOMIC DEVELOPMENT ACTIVITY
FOR THE PERIOD ENDED SEPTEMBER 30, 2015
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OPERATIONS & MAINTENANCE
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DELAWARE RIVER PORT AUTHORITY
Operations and Maintenance Committee Meeting
One Port Center2 Riverside DriveCamden, New Jersey
Tuesday, February 2, 2016
Committee Members:
Albert Frattali, O&M ChairmanRohan Hepkins, O&M Vice ChairmanRichard SweeneyE. Frank DiAntonioCarl Singley, Esq. (via telephone)Timothy Reese, Pennsylvania State Treasurer
(via telephone)
Others Present:
Amy Herbold, Senior Counsel,New Jersey Governor's Authorities Unit
Chelsea Guzowski, Director of Special Projects,Pennsylvania Governor's Office of the Budget
David Dix, Assistant to Chairman Boyer
DRPA/PATCO Staff:
John Hanson, Chief Executive Officer/PresidentMaria J. Wing, Deputy Chief Executive OfficerRaymond Santarelli, General Counsel and Corporate
SecretaryStephen Holden, Deputy General CounselKathleen Vandy, Assistant General CounselRichard J. Mosback, Jr., Assistant General CounselGerald Faber, Assistant General CounselDan Auletto, Acting Chief Operations OfficerToni Brown, Chief Administrative OfficerMichael Venuto, Chief EngineerJohn Viniski, Manager, Engineering - Planning & Design
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DRPA/PATCO Staff: (Continued)
Ashok Patel, Manager, Engineering - Construction &Maintenance
Edward Montgomery, Principal Engineer, EngineeringWilliam Shanahan, Director, Government RelationsMark Lopez, Manager, Government RelationsBarbara Holcomb, Manager of Capital Grants, Government
RelationsSteve Reiners, Director, Fleet ManagementKyle Anderson, Director of Corporate CommunicationsAnn DuVall, Project Analyst, Office of the CAOAmy Ash, Contract Administrator, Contract
AdministrationJohn Rink, General Manager, PATCOKathleen Imperatore, Director of Fare Collection,
PATCOSheila Milner, Administrative CoordinatorElizabeth McGee, Acting Records Manager
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I N D E X
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Roll Call 5
Executive Session 6
Professional Services for 2016 Biennial Inspection 6of the Betsy Ross Bridge
Professional Services for 2016 Biennial Inspection 6of the Benjamin Franklin Bridge
Professional Services for 2016 Biennial Inspection 6of the Walt Whitman Bridge
Professional Services for 2016 Biennial Inspection 6of the Commodore Barry Bridge
Professional Services for 2016 Biennial Inspectionof PATCO 6
Design Services for Benjamin Franklin BridgeMain Cable Investigation and Dehumidification 9
Contract No. BF-45-2016, Benjamin Franklin Bridge5th Street Tunnel Priority Wall Repairs 12
PARTSWG Transit Contract Intelligence Analysts,Phase IV 14
Approval of Title VI Submission to Federal TransitAdministration 15
Weed Control and Vegetation Management for FourBridge Facilities and PATCO 19
Procurement of one (1) 2016 Johnson VT StreetSweeper 20
Procurement of three (3) 2016 Kubota Tractors 21
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I N D E X (Continued)
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Procurement of three (3) 2016 Ford Escapesand one (1) 2016 Ford Transit Van 27
Temporary Transit Ambassadors 28
General Discussion
Spending Tracking 30
Adjournment 31
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P R O C E E D I N G S
(9:04 a.m.)
CHAIRMAN FRATTALI: I'd like to call to order
the meeting of the Operations and Maintenance
Committee of the Delaware River Port Authority and
have the Corporate Secretary call the roll.
MR. SANTARELLI: Good morning. Chairman
Frattali?
CHAIRMAN FRATTALI: Here.
MR. SANTARELLI: Commissioner Fentress?
Commissioner DiAntonio?
COMMISSIONER DiANTONIO: Here.
MR. SANTARELLI: Commissioner Sweeney?
COMMISSIONER SWEENEY: Here.
MR. SANTARELLI: Commissioner Hepkins?
COMMISSIONER HEPKINS: Here.
MR. SANTARELLI: Commissioner Fiol-Silva?
Treasurer Reese?
TREASURER REESE: Here.
MR. SANTARELLI: Commissioner Singley?
COMMISSIONER SINGLEY: Present.
MR. SANTARELLI: Thank you. You have a
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quorum.
CHAIRMAN FRATTALI: At this time, I'd like to
call for a motion to go into Executive Session. The
decisions made in Executive Session will be made
public when the issues are resolved. Do I have a
motion?
COMMISSIONER DiANTONIO: So moved.
CHAIRMAN FRATTALI: Second?
COMMISSIONER SWEENEY: Second.
CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: All right, we're in
Executive Session. If anyone has to leave, leave.
(Off the record at 9:05 a.m.)
(On the record at 9:37 a.m.)
CHAIRMAN FRATTALI: We've got a pretty big
agenda, so we want to move. That means to keep the
comments short. There are 14 items on the agenda for
Open Session. The first item is Professional Services
for 2016 Biennial Inspection of the Betsy Ross Bridge.
MR. VENUTO: John's going to take it.
MR. VINISKI: Good morning, Commissioners.
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I'm John Viniski. I'm stepping in for Mike Venuto for
this presentation. As part of our General Bond
Resolution and Bond Indenture, the Authority is
obligated to perform a biennial inspection on all of
our facilities.
Before I get into this, I'd like to recognize
Ed Montgomery. Ed Montgomery is a valuable -- he's
the handsome, studious gentleman in the white shirt in
the corner and he pulls these biennial inspections
together. It's not an easy chore. I did it a number
of years ago and I know there is a lot involved with
it. It probably starts in the summer, putting this
stuff together; then it arrives here for Board
execution.
Ed's job doesn't stop once the contracts are
executed. He follows these contracts into the
inspection process. I know it's a full-time job. At
times, I thought this position/work assignment
actually deserves to be known as Manager of Biennial
Inspection because there is a lot of work involved.
With that said, would you want me to go
through all five contracts collectively for approval?
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CHAIRMAN FRATTALI: Yes, do them all at once.
MR. VINISKI: I'll take care of it in that
manner. First is the Betsy Ross Bridge. These
contracts were competitively selected. We had the
work on our website for qualified firms to actively
participate. We went through a competitive selection
process and we have arrived at the following firms.
They were the top-ranked firms and we negotiated the
prices that we feel are fair and reasonable.
The first facility is the Betsy Ross Bridge.
The consultant for that facility will be AECOM, in the
amount of $485,000.
The second facility is the Benjamin Franklin
Bridge. HAKS Engineers is the selected firm, in the
amount of $584,000.
The third project is the Walt Whitman Bridge
and the top-ranked firm is Modjeski & Masters, in the
amount of $791,000.
The fourth facility is the Commodore Barry
Bridge. HNTB Corporation is the selected firm, in the
amount of $654,000.
PATCO facilities. The selected firm is
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Remington & Vernick, in the amount of $353,000.
Unless there are any questions, we now seek
Committee approval to move these contracts forward to
the Board.
CHAIRMAN FRATTALI: Any questions? Seeing
none, I need a motion.
COMMISSIONER DiANTONIO: So moved.
CHAIRMAN FRATTALI: Second?
COMMISSIONER HEPKINS: Second.
CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: All opposed? The ayes
have it.
The next item is Design Services for the Ben
Franklin Bridge Main Cable Investigation and
Dehumidification. John, are you going to take that
again?
MR. VINISKI: Yes. What I would like to do
first of all is to preface my discussion with the fact
that the Benjamin Franklin Bridge is our oldest
facility at the Port Authority. The bridge is
approaching 100 years of age; we're at 92 and fast
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approaching 100. We certainly would like to see this
bridge propel itself for another 100 years. So, in
that endeavor, the main cables of our Benjamin
Franklin Bridge will need preventive care.
This project for the main cable
dehumidification is a two-part project. The first
part is an internal inspection.
Just stepping back, during the biennial
inspection for the Ben Franklin Bridge and the Walt
Whitman Bridge they do an exterior inspection of the
main cable, the coating, the seals at the bands, the
suspender ropes. Everything is exterior on our
biennial inspection. The first phase of work on this
particular project will be an internal inspection.
The cable will be opened up and wedged.
We will be looking at five locations on the main
spans. One area has been a problem area that was
identified back in the late 1990s, and it is still
continually monitored. As part of this inspection, it
will be further monitored.
Our factor of safety on the bridge has dropped
from the original design of 4.25 to 2.44. We want to
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maintain the health of this bridge. A factor of 2.44
is adequate for our bridge; we want to maintain it at
2.44. So, as part of this first phase of work, we are
going to do continuing monitoring.
Consultants in the past have recommended that
the monitoring be done on a six- or seven-year basis.
It's not cheap. It's not easy. Workers that are up
there have to work in an environment with protective
suits because we have lead-based paste on the parallel
wires. It's not an easy chore. It's easy to inspect
the wires from the top face, but when they have to
wedge themselves on the underside, they get on their
backs. They are looking up into the cavity of the
wedge areas. It's not pleasant work whatsoever. So,
that's the first phase of work for this project.
The second phase is that we're looking to
protect this cable in the future. The recommendation
from many consultants is to go into dehumidification.
We went through a very intense process of
selecting the best, top-ranked firm to perform this
work. That firm is Weidlinger. They have a partner
that has done this work also. They have 10, 11
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similar projects for cable dehumidification under
their belt, so this isn't a first time for this firm.
With that said, we recommend that the
Committee move this SS&R for a contract with
Weidlinger Associates to the next Board meeting for
approval. It's in the negotiated amount of $3,541,700
for both phases of work.
If there are any questions on any particular
portions of the work, I'd be glad to try to answer
them.
CHAIRMAN FRATTALI: Any questions? Seeing
none, I need a motion to move the resolution to the
next Board meeting for approval.
COMMISSIONER DiANTONIO: So moved.
CHAIRMAN FRATTALI: Second?
COMMISSIONER SWEENEY: Second.
CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: Any opposed? The ayes
have it.
The next item is Contract Number BF-45-2016,
Ben Franklin Bridge 5th Street Tunnel Priority Wall
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Repairs. Ash?
MR. PATEL: Yes. We are going to amend the
existing contract, BF-37-2013, and we'd like to
expedite this project because of the mid-July
Democratic National Convention. We'd like the Board
to authorize staff to negotiate a construction
contract to perform the work under this contract that
includes: demolition of deteriorated concrete of the
5th Street Tunnel portal walls; installation of a
bridge barrier guardrail system; blast cleaning and
painting the lead-coated steel surfaces of the
concrete and overhead stringers; sidewalk and curb
reconstruction; replacement of tunnel lighting; crack
repairs; and other associated work.
We will have a bid opening February 11th. We
would like to present this Summary Statement at the
next Board meeting, February 17th.
CHAIRMAN FRATTALI: Any questions?
Seeing none, I need a motion to move the resolution to
the next Board meeting for approval.
COMMISSIONER HEPKINS: So moved.
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CHAIRMAN FRATTALI: Second?
COMMISSIONER SWEENEY: Second.
CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: Any opposed? The ayes
have it.
The next item is PARTSWG Transit Contract
Intelligence Analysts, Phase 4. Bill?
MR. SHANAHAN: Good morning, Mr. Chairman and
members of the Committee. We will ask the Board to
approve a contract with CRA, Inc., a GSA contractor.
CRA provides training and certified contract
intelligence analysts that staff our transit security
desk at the DVIC. Of course, you know the DVIC is the
Delaware Valley Intelligence Center. It is the
regional all-source law enforcement intelligence
vision center.
As you can see, these are the latest drafts of
the bus posters that go out there. So when somebody
uses this service, they can call, text, or use the
app. It goes into the transit desk, which we set up,
which is staffed by these analysts. This is 100
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percent funded by grant money. It is in the sum of
$620,000. It's coming from FY2015 Transit Grant
Security Program money provided by DHS.
CHAIRMAN FRATTALI: Any questions? Seeing
none, I need a motion to move the CRA resolution to
the next Board meeting for approval.
COMMISSIONER DiANTONIO: So moved.
CHAIRMAN FRATTALI: Second?
COMMISSIONER HEPKINS: Second.
CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: Any opposed? The ayes
have it.
The next item is Approval of Title VI
Submission to Federal Transit Administration.
MS. BROWN: Good morning, Commissioners. As
noted, Title VI of the Civil Rights Act of 1964
prohibits discrimination on the basis of race, color,
and national origin in any programs and activities for
which we seek federal financial assistance. DRPA does
receive financial assistance from the FTA for PATCO,
and as such, Title VI compliance is required for
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continued funding.
As a condition of receiving the federal
funding, PATCO is required to submit a Title VI
program every three years. The last time we submitted
this program was in 2013. It was approved. Our next
submission is due on or before April 1, 2016.
What we are proposing to submit to the FTA
builds on an already successful program. It is in
front of you this morning for your review and
consideration. The only thing we want to point out
for you at this time is that this program that we
propose to submit does include three enhancements.
The first enhancement is a comprehensive
public participation plan. This plan outlines the
steps our Agency proposes to take in the event that we
were to propose a fare or toll increase. It also
outlines the communication plan that we would put into
place if we were to have a route change.
Finally, at pages 63 through 68 of the plan,
we have outlined for you a number of initiatives that
we put into place to help those who are considered
‘limited English proficient’ in accessing PATCO's
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services.
The second enhancement is our language
assistance plan. It has been enhanced to include a
number of resource tools that will also assist limited
English proficient individuals in accessing our PATCO
services.
Finally, the FTA requires that we survey all
of our riders in order to collect and report on
certain demographic and ridership information. We
partnered with the Delaware Valley Regional Planning
Commission, the DVRPC, to survey a random number of
PATCO customers in October 2015.
The FTA directed all grant recipients to move
away from using paper surveys, so DVRPC provided
tablets for this survey. We were able to get 3,340
completed surveys from customers of PATCO. The data
from the survey has been detailed for you. It was
analyzed by DVRPC and detailed for you starting at
page 85 of the submission.
The booklet is quite voluminous. It provides
20 specific sections which would make us compliant
with the FTA. The next steps at this point, assuming
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this Committee approves this submission, would be for
it to be presented to the full Board for its
consideration. After the veto period expires, we
would upload this program electronically into FTA's
tram system.
At this point, I would like to recognize the
members of the 19-member, cross-functional Title VI
team. Although I served as the project's sponsor, the
project lead was Ann DuVall, a project analyst in the
Office of the Chief Administrative Officer. There are
also nine other members of this cross-functional team,
and I would ask that they please stand at this time so
that they might be recognized by the Committee as
well.
(Applause)
MS. BROWN: Thank you very much.
CHAIRMAN FRATTALI: Are there any questions?
Seeing none, I need a motion to move the Title VI
submission to the Board for approval.
COMMISSIONER HEPKINS: So moved.
CHAIRMAN FRATTALI: Second?
COMMISSIONER DiANTONIO: Second.
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CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: Any opposed? The ayes
have it.
The next item is Weed Control and Vegetation
Management for the four Bridge Facilities. Dan?
MR. AULETTO: Good morning, Mr. Chairman,
Commissioners. This is a proposal that the Board
authorize staff to enter into a three-year contract
with Weed, Incorporated, of Aston, PA, for vegetation
management and weed control services for DRPA and
PATCO.
Weed, Incorporated has been in business since
1966 with an experienced staff and technicians and
applicators. Weed, Incorporated was the lowest
responsible bid, and staff recommends that the
contract be awarded to Weeds, Incorporated for the
amount of $182,100. Thank you.
CHAIRMAN FRATTALI: Any questions? Seeing
none, I need a motion to move this resolution to the
Board for approval.
COMMISSIONER SWEENEY: Move the motion.
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COMMISSIONER DiANTONIO: Second.
CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: Any opposed?
All right, the next item is Procurement of one
2016 Johnson VT Street Sweeper. Mr. Reiners?
MR. REINERS: Good morning, Commissioners.
We're asking the Board to authorize staff to negotiate
a contract with U.S. Municipal, a state contract
vendor under the Co-Stars PA Program to purchase a
Johnson VT Street Sweeper for $269,758. This is under
the Pennsylvania state contract at this point, and it
is covered under the Capital Budget for 2016.
CHAIRMAN FRATTALI: Any questions? Seeing
none, I need a motion to move this resolution to the
Board for approval.
COMMISSIONER DiANTONIO: So moved.
CHAIRMAN FRATTALI: Second?
COMMISSIONER SWEENEY: Second.
CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: Any opposed?
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The next item is Procurement of Three 2016
Kubota Tractors. Mr. Reiners?
MR. REINERS: Again, we are asking the Board
to authorize the staff to negotiate a purchase
contract with CH Waltz Sons, Incorporated, to purchase
two M7060HD tractors and one Kubota tractor B2650 in
the total amount of $131,068.48. CH Waltz Sons is
under a Co-Stars contract under the State of
Pennsylvania. It provides best practice pricing for
this.
These tractors will be used to maintain the
facilities in the summertime, cutting grass. We will
also use these tractors at PATCO in the wintertime to
remove snow and ice.
CHAIRMAN FRATTALI: We have a few questions.
MR. REINERS: Yes, sir.
COMMISSIONER DiANTONIO: Are there any other
bidders that go with this?
MR. REINERS: We did not look at any other
bidders. We went right off the state contract with
the State of Pennsylvania.
MR. HANSON: The state actually does its own
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procurement and there are multiple bidders. This is
the successful bidder. On the state contracts, they
actually conduct a procurement, have multiple bidders,
and that's why we don't have to bid it out. We can
just go right to their contract.
CHAIRMAN FRATTALI: Either Pennsylvania or New
Jersey, whoever uses the best staff or the best
bidder.
COMMISSIONER DiANTONIO: But the question is,
could it be bid out under a U.S. American-made
machinery requirement? I know they have a plant in
Georgia, but my concern is where the bottom line goes,
say like in reference to a John Deere. It sounds to
me by these numbers, that it's equivalent to a John
Deere 4300 or a 5000 series tractor. Am I correct
when I say that?
MR. REINERS: Yes.
COMMISSIONER DiANTONIO: Okay. So I can't see
why it couldn't be competitively bid against American-
made company machinery, or being questioned anyway.
MR. HANSON: Our procurement rules don't allow
us to do that. Our procurement rules only allow us --
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in this type of procurement -- to take the lowest
bidder. We can take the lowest bidder either through
bidding it out ourselves or going to someone who has
conducted procurement through a government, within
their own procurement rules like the State of New
Jersey or the State of Pennsylvania.
I'm not even entirely sure of the legality of
that restriction. That's a matter that would have to
be looked at. But I do know, though I can't say with
certainty about the legality of it, I do know that our
procurement regulations do not permit us to do
something that would potentially cause the price to be
higher.
We have, in certain engineering contracts,
best-value type procurements where cost is one factor,
but not the highest. But even there, we do not have
origin of the work as one of the criteria; you know,
being American steel or something like that.
COMMISSIONER DiANTONIO: But other than the
legality, is there any way that we can question that?
MR. SANTARELLI: We could probably look into
it.
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COMMISSIONER DiANTONIO: Well, that's
basically my question, if we could look into that.
MR. HANSON: Ray will look into the legality
and report back to this Committee on that. If we do
find that it's legal, the Committee would also have to
advance a change to our procurement rules to Board
level, I think. We may be able to amend the
procurement manual, if we find out it is legal; I'm
not sure. But right now we don't have the authority
to do something like that.
COMMISSIONER DiANTONIO: I think we should
take one step at a time in reference to the legality
of it. And then if it's okay on the legality part of
it, then to go to the next step in reference to get
procurement. Because I think it's very important that
we look into these items in reference to American-made
products.
MR. SANTARELLI: I can look into that. But I
do know passing resolutions and things of that nature
take time, and I don't know what the time limitation
is on this.
COMMISSIONER DiANTONIO: I'm not saying do it
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on this one.
MR. SANTARELLI: Okay, okay.
COMMISSIONER DiANTONIO: No, I'm not saying do
it on this one because I know it's going to take time
to do that. But it just brought up a good point --
MR. SANTARELLI: I will do that.
COMMISSIONER DiANTONIO: -- in reference to
doing that.
MR. REINERS: Under the PA contract, anything
that's on that contract has to be made in North
America. That does incorporate Mexico and Canada.
But if it's not manufactured there, then they cannot
sell it on that state contract.
COMMISSIONER DiANTONIO: Well, being
manufactured, I understand that. And I don't want to
prolong this conversation, but I think we should start
looking at the bottom line, where the bottom line
goes. And the tax that comes back into this country
that is paid on these machines, just like a car, the
taxes are paid more than we export. So, I don't want
to get into that, but if we could check into the
legality part of it? I feel very strongly about that
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in reference to American-made products and the bottom
line, where the bottom line number goes.
MR. SANTARELLI: And we'll look into it and
report back.
COMMISSIONER DiANTONIO: I appreciate that.
MR. HANSON: Meaning not just where the
product is manufactured, but the country of origin of
the company that manufactures it.
COMMISSIONER DiANTONIO: Exactly right,
exactly.
MR. HANSON: I've got it. Thank you.
CHAIRMAN FRATTALI: The last couple of months
we've been purchasing a lot of vehicles, tractors and
stuff. So I think we're pretty much getting near the
end of replacement.
MR. SANTARELLI: We'll look into it, and we'll
have a report back for the next meeting.
CHAIRMAN FRATTALI: As Jim White would say,
“we're flush with cash; we might as well spend it
now.” All right, I need a motion to move this
resolution to the Board for approval.
COMMISSIONER DiANTONIO: So moved.
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CHAIRMAN FRATTALI: Second?
COMMISSIONER SWEENEY: Second.
CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: Any opposed? Ayes
have it.
The next item is Procurement of three 2016
Ford Escapes and one 2016 Ford Transit Van.
MR. REINERS: We're asking the Board to
authorize staff to negotiate a purchase contract with
McCafferty Ford in Mechanicsburg, PA, to purchase three
Ford Escapes, 2016 all-wheel drive vehicles and one Ford
F-250 Van, for the total dollar amount of $105,221.
These are under the PA Co-Stars contract and are under
the 2016 Capital Budget.
CHAIRMAN FRATTALI: Any questions?
COMMISSIONER DiANTONIO: Yeah, what would the
Escapes be used for?
MR. REINERS: The Escapes are going to be used
by the mail room; we're going to repurpose their
vehicles to staff vehicles, because they have high
mileage on them at this point. The third Escape goes
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to PATCO for their administration, for when they're
going back and forth, to and from the buildings.
COMMISSIONER DiANTONIO: Good, thanks.
MR. REINERS: They're replacing two 2000 Crown
Vics and one 1999 Dodge Intrepid.
COMMISSIONER DiANTONIO: Wow, okay. Good
choice.
CHAIRMAN FRATTALI: I need a motion to move
this resolution to the Board for approval.
COMMISSIONER HEPKINS: So moved.
CHAIRMAN FRATTALI: Second?
COMMISSIONER SWEENEY: Second.
CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: Any opposed? The ayes
have it.
The final item is the Temporary Transit
Ambassadors. John?
MR. RINK: Thank you, Mr. Chair,
Commissioners. We are seeking authorization for staff
to negotiate a three-year contract with Accountants
For You to supply the temporary workers for the
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position of Transit Ambassador, a position
occasionally required by PATCO. The amount would be
not to exceed $1.125 million.
As you're aware, Transit Ambassadors provide a
recognizable, professional, and courteous presence
throughout the PATCO system to assist our customers
with navigating and understanding how to use our fare
collection system at the stations, how to purchase
tickets from the ticket vending machines, and also how
to read schedules.
The Transit Ambassadors are stationed in a
specific station per shift or, when required, they
roam the system, ride our trains, and interface with
other ambassadors. Their work hours and locations may
vary based on PATCO needs.
On October 7th, a Request for Proposal was
publicly advertised on the DRPA website, and two
proposals were received. The proposals were evaluated
on completeness, qualification of the firms,
understanding of scope, and the hourly bill rate.
Staff has reviewed and evaluated Accountants
For You, Inc.'s proposal and determined it to be fair
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and reasonable. It is recommended that a contract be
negotiated with them to supply the temporary workers
for Transit Ambassadors. Also, Accountants For You is
one of our current providers of workers for the
Transit Ambassador position.
CHAIRMAN FRATTALI: Any questions? Seeing
none, I need a motion to move this resolution to the
Board for approval.
COMMISSIONER DiANTONIO: So moved.
CHAIRMAN FRATTALI: Second?
COMMISSIONER SWEENEY: Second.
CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: Any opposed? The ayes
have it.
We have one item for General Discussion, the
Spending Track. Do you want to take it, Mike?
MR. VENUTO: Thank you. Good morning,
Commissioners. Given our transition to the SAP
system, we're still verifying the final numbers, so I
don't have the handout for you, today. It'll be the
year-end numbers. We'll present that at the next O&M
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meeting; but, I can give you the rough numbers. We
spent about $9 million in December, which takes us to
just over $82 million for 2015.
CHAIRMAN FRATTALI: All right, there is no
other business. I need a motion for adjournment.
COMMISSIONER DiANTONIO: So moved.
CHAIRMAN FRATTALI: Second?
COMMISSIONER SWEENEY: Second.
CHAIRMAN FRATTALI: All in favor?
ALL: Aye.
CHAIRMAN FRATTALI: We're adjourned.
(Whereupon, the Operations & Maintenance
Committee Meeting ended at 10:04 a.m.)
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C E R T I F I C A T E
This is to certify that the attached
proceedings before the Delaware River Port Authority
Operations and Maintenance Committee on February 2,
2016, were held as herein appears, and that this is
the original transcript thereof for the file of the
Authority.
_________________________Tom Bowman, ReporterFREE STATE REPORTING, INC.
SUMMARY STATEMENT
ITEM NO.: DRPA-16-017 SUBJECT: Professional Services for 2016Biennial Inspection of the Betsy RossBridge
COMMITTEE: Operations and Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate an agreement withAECOM Technical Services, Inc. to provide engineering servicesrequired to perform the 2016 Biennial Inspection of the Betsy RossBridge.
Amount: $485,000.00
Consultant: AECOM Technical Services, Inc.1700 Market StreetSuite 1600Philadelphia, PA 19103
Other Consultants: HDR Engineering, Inc.Modjeski & MastersPennoni Associates, Inc.TranSystems CorporationWSP USA Corporation
Engineers Estimate: $475,000.00
PURPOSE: To provide consulting engineering services for the 2016 BiennialInspection of the Betsy Ross Bridge.
BACKGROUND: Under the Delaware River Port Authority’s (DRPA) Bond Indenturesdated 1995, 1998 and 1999, the DRPA is obligated to inspect all DRPAfacilities every second calendar year; the Indenture further states thatan inspection report be submitted on or before October 1 of everysecond calendar year. In the past years, the Commissioners haveauthorized payment from the Revenue Fund for services rendered.The most recent biennial inspection of the Betsy Ross Bridge facilityoccurred in the Summer of 2014. In order to satisfy the Authority’sBond Indenture and in order to assist in developing a plan formaintaining this facility, it is necessary to perform this biennialinspection of the Betsy Ross Bridge.
SUMMARY STATEMENT Professional Services for 2016O&M - 2/2/16 Biennial Inspection of the
Betsy Ross Bridge______________________________________________________________________________
The work would include close visual “hands on” inspection of allbridge components and systems, preparation of a 2016 BiennialInspection Report for the Betsy Ross Bridge and completion ofStructure Inventory and Appraisal forms and Bridge Managementforms as required by the Commonwealth of Pennsylvania and State ofNew Jersey, respectively.
The Authority publicly advertised its intent to retain a consultant andinvited interested firms to submit Statements of Qualifications.Fifteen (15) firms responded with Statements of Qualifications onApril 16, 2015. Six (6) firms were deemed qualified and were sent aformal Request for Proposal. A review committee of four (4) staffengineers evaluated the Proposals on the basis of Technical merit.
AECOM Technical Services, Inc. was the highest technically rankedfirm. The proposed Project Manager has previous experience withmajor bridge inspection projects and has been responsive on pastDRPA projects. AECOM Technical Services, Inc.’s Inspection Teamhas many years experience inspecting bridges similar to thoserequired for this contract. Overall, the team assembled by AECOMTechnical Services, Inc. was found to possess the necessary experienceand qualifications to successfully complete the project.
In accordance with the Delaware River Port Authority’s qualificationbased selection procedure, the Price Proposal was evaluated againstthe Engineer’s Estimate and that of other recommended firms. Basedon this evaluation and subsequent negotiation, AECOM TechnicalServices, Inc.’s price was determined to be fair and reasonable.
SUMMARY: Amount: $485,000.00Source of Funds: Revenue FundCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 MonthsOther Parties Involved: N/AEstimated Number ofJobs Supported: 2
DRPA-16-017Operations and Maintenance Committee: February 2, 2016
Board Date: February 17, 2016Professional Services for 2016 Biennial
Inspection of the Betsy Ross Bridge
RESOLUTION
RESOLVED: That the Board of Commissioners of the Delaware River Port Authorityaccepts the Proposal AECOM Technical Services, Inc. to provideProfessional Services for 2016 Biennial Inspection of the Betsy Ross Bridgeand that the proper officers of the Authority be and hereby are authorizedto negotiate an Agreement with AECOM Technical Services, Inc. for anamount not to exceed $485,000.00 as per the attached Summary Statement;and be it further
RESOLVED: The Chairman, Vice Chairman and the Chief Executive Officer mustapprove and are hereby authorized to approve and execute all necessaryagreements, contracts, or other documents on behalf of the DRPA. If suchagreements, contracts, or other documents have been approved by theChairman, Vice Chairman and Chief Executive Officer and if thereaftereither the Chairman or Vice Chairman is absent or unavailable, theremaining Officer may execute the said document(s) on behalf of DRPAalong with the Chief Executive Officer. If both the Chairman and ViceChairman are absent or unavailable, and if it is necessary to execute thesaid document(s) while they are absent or unavailable, then the ChiefExecutive Officer shall execute such documents on behalf of DRPA.
SUMMARY: Amount: $485,000.00Source of Funds: Revenue FundCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 MonthsOther Parties Involved: N/AEstimated Number ofJobs Supported: 2
MEMORANDUM
TO: O&M Committee Members
FROM: Michael P. Venuto, Chief Engineer
SUBJECT: Professional Services for 2016 Biennial Inspection of the Betsy Ross BridgeTechnical Proposal Evaluation, Findings and Recommendation Report
DATE: February 2, 2016
The Request for Qualifications (RFQs), which was posted on the Authority’s web-site, invitedconsultants to submit Statements of Qualifications (SOQs). Fifteen (15) firms submitted SOQson April 16, 2015.
Policy 303a outlines the procedure for Request for Proposal selection of consultants by theEngineering Department. The SOQ evaluation serves as a method for developing a “short list”of firms to receive a Request for Proposal (RFP). The Review Committee evaluated the SOQ’sand recommended soliciting Technical and sealed Price Proposals from the top ranked firms:AECOM Technical Services, Inc., HDR Engineering, Inc., Modjeski & Masters, PennoniAssociates, Inc., TranSystems Corporation, and WSP USA Corporation.
The short listed firms were sent a RFP on August 14, 2015. The Technical Proposals andseparate sealed Price Proposals were received on September 22, 2015 from all the firms. TheReview Committee, consisting of four (4) staff engineers, reviewed and evaluated the TechnicalProposals.
AECOM Technical Services, Inc. was the highest technically ranked firm. The proposed ProjectManager has previous experience with major bridge inspection projects and has been responsiveon past DRPA projects. Overall, the team assembled by AECOM Technical Services, Inc.. wasfound to possess the necessary experience and qualifications to successfully complete theproject.
The Review Committee recommended that the Price Proposal be opened and negotiationscommence using other recommended firm’s Price Proposals and the Engineer’s Estimate in theamount of $475,000.00 as a guide. Price Proposals were opened on December 21, 2015. Beloware the Technical Proposal rankings, proposed hours and fees of these firms, along with theEngineer’s Estimate of hours.
DELAWARE RIVER PORT AUTHORITY
of Pennsylvania & New Jersey
Rank Firm HoursOriginal Price
ProposalNegotiated
Hours FeeEngineer’s Estimate 2350 $475,000
1 AECOM Technical Services, Inc. 2176 $517,000 2086 $485,000.002 Modjeski & Masters 2278 $453,0003 WSP USA Corporation 2152 $495,0004 Pennoni Associates, Inc. 2408 $462,0005 TranSystems Corporation 2857 $475,0006 HDR Engineering, Inc. 2773 $596,000
The Price Proposal from the highest technically ranked firm, AECOM Technical Services, Inc.,dated September 22, 2015, was reviewed by Engineering Department staff. It was observed to beless than 9% higher than the Engineer’s Estimate. Negotiations commenced which resulted in afinal Price Proposal in an amount of $485,000.00. Based on the Review Committee’s findings thePrice Proposal of AECOM Technical Services, Inc. has been determined to be fair and reasonableand therefore the committee recommends that an Engineering Services Agreement be issued to thehighest technically ranked firm, AECOM Technical Services, Inc.
Based on a review of the Review Committee’s evaluation and supporting documentation, I concur
with the recommendation to engage AECOM Technical Services, Inc. of Philadelphia, PA, in the
amount of $485,000.00 for this Agreement.
:sln
SUMMARY STATEMENT
ITEM NO.: DRPA-16-018 SUBJECT: Professional Services for 2016Biennial Inspection of the BenjaminFranklin Bridge
COMMITTEE: Operations and Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate an agreement with HAKSEngineers, Architects, and Land Surveyors, P.C. to provideengineering services required to perform the 2016 Biennial Inspectionof the Benjamin Franklin Bridge.
Amount: $584,000.00
Consultant: HAKS Engineers, Architects and LandSurveyors, P.C.1601 Market StreetSuite 1020Philadelphia, PA 19103
Other Consultants: AECOM Technical ServicesHNTB CorporationTranSystems Corporation
Engineers Estimate: $600,000.00
PURPOSE: To provide consulting engineering services for the 2016 BiennialInspection of the Benjamin Franklin Bridge.
BACKGROUND: Under the Delaware River Port Authority’s (DRPA) Bond Indenturesdated 1995, 1998 and 1999, the DRPA is obligated to inspect all DRPAfacilities every second calendar year; the Indenture further states thatan inspection report be submitted on or before October 1 of everysecond calendar year. In the past years, the Commissioners haveauthorized payment from the Revenue Fund for services rendered.The most recent biennial inspection of the Benjamin Franklin Bridgefacility occurred in the Summer of 2014. In order to satisfy theAuthority’s Bond Indenture and in order to assist in developing aplan for maintaining this facility, it is necessary to perform thisbiennial inspection of the Benjamin Franklin Bridge.
SUMMARY STATEMENT Professional Services for 2016O&M – 2/2/16 Biennial Inspection of the
Benjamin Franklin Bridge
______________________________________________________________________________
The work would include close visual “hands on” inspection of allbridge components and systems, preparation of a 2016 BiennialInspection Report for the Benjamin Franklin Bridge and completionof Structure Inventory and Appraisal forms and Bridge Managementforms as required by the Commonwealth of Pennsylvania and State ofNew Jersey, respectively.
The Authority publicly advertised its intent to retain a consultant andinvited interested firms to submit Statements of Qualifications. Ten(10) firms responded with Statements of Qualifications on April 16,2015. Four (4) firms were deemed qualified and were sent a formalRequest for Proposal. A review committee of four (4) staff engineersevaluated the Proposals on the basis of Technical merit.
HAKS Engineers, Architects and Land Surveyors, P.C. was thehighest technically ranked firm. The proposed Project Manager hasprevious experience with major bridge inspection projects and hasbeen responsive on past DRPA projects. HAKS Engineers, Architectsand Land Surveyors, P.C.’s Inspection Team has many yearsexperience inspecting bridges similar to those required for thiscontract. Overall, the team assembled by HAKS Engineers, Architectsand Land Surveyors, P.C. was found to possess the necessaryexperience and qualifications to successfully complete the project.
In accordance with the Delaware River Port Authority’s qualificationbased selection procedure, the Price Proposal was evaluated againstthe Engineer’s Estimate and that of other recommended firms. Basedon this evaluation and subsequent negotiation, HAKS Engineers,Architects and Land Surveyors, P.C.’s price was determined to be fairand reasonable.
SUMMARY STATEMENT Professional Services for 2016O&M – 2/2/16 Biennial Inspection of the
Benjamin Franklin Bridge
______________________________________________________________________________
SUMMARY: Amount: $584,000.00Source of Funds: Revenue FundCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 MonthsOther Parties Involved: N/AEstimated Number ofJobs Supported: 2
DRPA-16-018Operations and Maintenance Committee: February 2, 2016
Board Date: February 17, 2016Professional Services for 2016 Biennial
Inspection of the Benjamin Franklin Bridge
RESOLUTION
RESOLVED: That the Board of Commissioners of the Delaware River Port Authorityaccepts the Proposal of HAKS Engineers, Architects and Land Surveyors,P.C. to provide Professional Services for 2016 Biennial Inspection of theBenjamin Franklin Bridge and that the proper officers of the Authority beand hereby are authorized to negotiate an Agreement with HAKSEngineers, Architects and Land Surveyors, P.C. for an amount not toexceed $584,000.00 as per the attached Summary Statement; and be itfurther
RESOLVED: The Chairman, Vice Chairman and the Chief Executive Officer mustapprove and are hereby authorized to approve and execute all necessaryagreements, contracts, or other documents on behalf of the DRPA. If suchagreements, contracts, or other documents have been approved by theChairman, Vice Chairman and Chief Executive Officer and if thereaftereither the Chairman or Vice Chairman is absent or unavailable, theremaining Officer may execute the said document(s) on behalf of DRPAalong with the Chief Executive Officer. If both the Chairman and ViceChairman are absent or unavailable, and if it is necessary to execute thesaid document(s) while they are absent or unavailable, then the ChiefExecutive Officer shall execute such documents on behalf of DRPA.
SUMMARY: Amount: $584,000.00Source of Funds: Revenue FundCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 MonthsOther Parties Involved: N/AEstimated Number ofJobs Supported: 2
MEMORANDUM
TO: O&M Committee Members
FROM: Michael P. Venuto, Chief Engineer
SUBJECT: Professional Services for 2016 Biennial Inspection of the Benjamin FranklinBridgeTechnical Proposal Evaluation, Findings and Recommendation Report
DATE: February 2, 2016
The Request for Qualifications (RFQs), which was posted on the Authority’s web-site, invitedconsultants to submit Statements of Qualifications (SOQs). Ten (10) firms submitted SOQs onApril 16, 2015.
Policy 303a outlines the procedure for Request for Proposal selection of consultants by theEngineering Department. The SOQ evaluation serves as a method for developing a “short list”of firms to receive a Request for Proposal (RFP). The Review Committee evaluated the SOQ’sand recommended soliciting Technical and sealed Price Proposals from the top ranked firms:AECOM Technical Services, HAKS Engineers, Architects and Land Surveyors, P.C., HNTBCorporation and TranSystems Corporation.
The short listed firms were sent a RFP. The Technical Proposals and separate sealed PriceProposals were received on September 24, 2015 from all the firms. The Review Committee,consisting of four (4) staff engineers, reviewed and evaluated the Technical Proposals.
HAKS Engineers, Architects and Land Surveyors, P.C. was the highest technically ranked firm.The proposed Project Manager has previous experience with major bridge inspection projectsand has been responsive on past DRPA projects. Overall, the team assembled by HAKSEngineers, Architects and Land Surveyors, P.C. was found to possess the necessary experienceand qualifications to successfully complete the project.
The Review Committee recommended that the Price Proposal be opened and negotiationscommence using other recommended firm’s Price Proposals and the Engineer’s Estimate in theamount of $600,000 as a guide. Price Proposals were opened on December 21, 2015.
Below are the Technical Proposal rankings, proposed hours and fees of these firms, along withthe Engineer’s Estimate of hours.
DELAWARE RIVER PORT AUTHORITY
of Pennsylvania & New Jersey
Rank Firm HoursOriginal Price
ProposalNegotiated
Hours FeeEngineer’s Estimate 3425 $600,000.00
1 HAKS 3158 $584,000.002 HNTB Corporation 3724 $669,000.003 AECOM 2944 $628,000.004 TranSystems 3612 $688,000.00
The Price Proposal from the four recommended firms were opened and the Price Proposal from,HAKS Engineers, Architects and Land Surveyors, P.C. dated September 24, 2015 was reviewedby Engineering Department staff. It was observed to be 3% lower than the Engineer’s Estimate.Based on the Review Committee’s findings the Price Proposal submitted by HAKS Engineers,Architects and Land Surveyors, P.C., Inc. has been determined to be fair and reasonable andtherefore the committee recommends that an Engineering Services Agreement be issued to thehighest technically ranked firm, HAKS Engineers, Architects and Land Surveyors, P.C.
Based on a review of the Review Committee’s evaluation and supporting documentation, I concur
with the recommendation to engage HAKS Engineers, Architects and Land Surveyors, P.C. of
Philadelphia, PA, in the amount of $584,000.00 for this Agreement.
:sln
SUMMARY STATEMENT
ITEM NO.: DRPA-16-019 SUBJECT: Professional Services for2016 Biennial Inspection of the WaltWhitman Bridge
COMMITTEE: Operations and Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate an agreement withModjeski and Masters, Inc. to provide engineering services requiredto perform the 2016 Biennial Inspection of the Walt Whitman Bridge.
Amount: $791,000.00
Consultant: Modjeski and Masters, Inc.100 Sterling ParkwaySuite 302Mechanicsburg, PA 17050
Other Consultants: Ammann & WhitneyWSP USA CORP
Engineers Estimate: $900,000.00
PURPOSE: To provide consulting engineering services for the 2016 BiennialInspection of the Walt Whitman Bridge.
BACKGROUND: Under the Delaware River Port Authority’s (DRPA) Bond Indenturesdated 1995, 1998 and 1999, the DRPA is obligated to inspect all DRPAfacilities every second calendar year; the Indenture further states thatan inspection report be submitted on or before October 1 of everysecond calendar year. In the past years, the Commissioners haveauthorized payment from the Revenue Fund for services rendered.The most recent biennial inspection of the Walt Whitman Bridgefacility occurred in the Summer of 2014. In order to satisfy theAuthority’s Bond Indenture and in order to assist in developing aplan for maintaining this facility, it is necessary to perform thisbiennial inspection of the Walt Whitman Bridge.
The work would include close visual “hands on” inspection of allbridge components and systems, preparation of a 2016 BiennialInspection Report for the Walt Whitman Bridge and completion of
SUMMARY STATEMENT Professional Services for 2016O&M - 2/3/16 Biennial Inspection of the
Walt Whitman Bridge
Structure Inventory and Appraisal forms and Bridge Managementforms as required by the Commonwealth of Pennsylvania and State ofNew Jersey, respectively.
The Authority publicly advertised its intent to retain a consultant andinvited interested firms to submit Statements of Qualifications. Ten(10) firms responded with Statements of Qualifications on April 16,2015. Three (3) firms were deemed qualified and were sent a formalRequest for Proposal. A review committee of four (4) staff engineersevaluated the Proposals on the basis of Technical merit.
Modjeski and Masters, Inc. was the highest technically ranked firm.The proposed Project Manager has previous experience with majorbridge inspection projects. Modjeski and Masters, Inc.’s InspectionTeam has many years experience inspecting bridges similar to thoserequired for this contract. Overall, the team assembled by Modjeskiand Masters, Inc. was found to possess the necessary experience andqualifications to successfully complete the project.
In accordance with the Delaware River Port Authority’s qualificationbased selection procedure, the Price Proposal was evaluated againstthe Engineer’s Estimate and that of other recommended firms. Basedon this evaluation and subsequent negotiation, Modjeski and Masters,Inc.’s price was determined to be fair and reasonable.
SUMMARY: Amount: $791,000.00Source of Funds: Revenue FundCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 MonthsOther Parties Involved: N/AEstimated Number ofJobs Supported: 3
DRPA-16-019Operations and Maintenance Committee: February 2, 2016
Board Date: February 17, 2016Professional Services for 2016 Biennial
Inspection of the Walt Whitman Bridge
RESOLUTION
RESOLVED: That the Board of Commissioners of the Delaware River Port Authorityaccepts the Proposal of Modjeski and Masters, Inc. to provide ProfessionalServices for 2016 Biennial Inspection of the Walt Whitman Bridge and thatthe proper officers of the Authority be and hereby are authorized tonegotiate an Agreement with Modjeski and Masters, Inc. for an amount notto exceed $791,000.00, as per the attached Summary Statement; and be itfurther
RESOLVED: The Chairman, Vice Chairman and the Chief Executive Officer mustapprove and are hereby authorized to approve and execute all necessaryagreements, contracts, or other documents on behalf of the DRPA. If suchagreements, contracts, or other documents have been approved by theChairman, Vice Chairman and Chief Executive Officer and if thereaftereither the Chairman or Vice Chairman is absent or unavailable, theremaining Officer may execute the said document(s) on behalf of DRPAalong with the Chief Executive Officer. If both the Chairman and ViceChairman are absent or unavailable, and if it is necessary to execute thesaid document(s) while they are absent or unavailable, then the ChiefExecutive Officer shall execute such documents on behalf of DRPA.
SUMMARY: Amount: $791,000.00Source of Funds: Revenue FundCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 MonthsOther Parties Involved: N/AEstimated Number ofJobs Supported: 3
MEMORANDUM
TO: O&M Committee Members
FROM: Michael P. Venuto, Chief Engineer
SUBJECT: Professional Services for 2016 Biennial Inspection of the Walt Whitman BridgeTechnical Proposal Evaluation, Findings and Recommendation Report
DATE: February 2, 2016
The Request for Qualifications (RFQs), which was posted on the Authority’s web-site, invitedconsultants to submit Statements of Qualifications (SOQs). Ten (10) firms submitted SOQs onApril 16, 2015.
Policy 303a outlines the procedure for Request for Proposal selection of consultants by theEngineering Department. The SOQ evaluation serves as a method for developing a “short list”of firms to receive a Request for Proposal (RFP). The Review Committee evaluated the SOQ’sand recommended soliciting Technical and sealed Price Proposals from the top ranked firms:Ammann & Whitney, Modjeski & Masters, and WSP USA CORP.
The short listed firms were sent a RFP on August 14, 2015. The Technical Proposals andseparate sealed Price Proposals were received on September 24, 2015 from all the firms. TheReview Committee, consisting of four (4) staff engineers, reviewed and evaluated the TechnicalProposals.
Modjeski and Masters, Inc.. was ranked as the highest technically qualified firm. The proposedProject Manager has previous experience with major bridge inspection projects. Overall, theteam assembled by Modjeski and Masters, Inc. was found to possess the necessary experienceand qualifications to successfully complete the project.
The Review Committee recommended that the Price Proposal be opened and negotiationscommence using other recommended firm’s Price Proposals and the Engineer’s Estimate in theamount of $900,000.00, as a guide. Price Proposals were opened on December 21, 2015.
DELAWARE RIVER PORT AUTHORITY
of Pennsylvania & New Jersey
Below are the Technical Proposal rankings, proposed hours and fees of these firms, along withthe Engineer’s estimate of hours.
Rank Firm HoursOriginal Price
ProposalNegotiated
Hours FeeEngineer’s Estimate 4500 $900,000
1 Modjeski & Masters 4088 $791,0002 Ammann & Whitney 4564 $1,072,0003 WSP USA Corp. 4908 $860,000
The Price Proposal from the three recommended firms were opened and the Price Proposal fromModjeski & Masters $791,000.00, dated September 24, 2015 was reviewed by EngineeringDepartment staff. It was observed to be 12% lower than the Engineer’s Estimate. Based on theReview Committee’s findings the Price Proposal of Modjeski and Masters, Inc. has beendetermined to be fair and reasonable and therefore the committee recommends that an EngineeringServices Agreement be issued to the highest technically ranked firm, Modjeski and Masters, Inc.
Based on a review of the Review Committee’s evaluation and supporting documentation, I concur
with the recommendation to engage Modjeski and Masters, Inc. of Mechanicsburg, PA, in the
amount of $791,000.00 for this Agreement.
:sln
SUMMARY STATEMENT
ITEM NO.: DRPA-16-020 SUBJECT: Professional Services for 2016Biennial Inspection of the CommodoreBarry Bridge
COMMITTEE: Operations and Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate an agreement with HNTBCorporation to provide engineering services required to perform the2016 Biennial Inspection of the Commodore Barry Bridge.
Amount: $654,000.00
Consultant: HNTB Corporation1650 Arch StreetSuite 1700Philadelphia, PA 19103
Other Consultants: Ammann & WhitneyHAKS Engineers, Architects, and LandSurveyors, P.C.Pickering, Corts & Summerson, Inc.
Engineers Estimate: $600,000.00
PURPOSE: To provide consulting engineering services for the 2016 BiennialInspection of the Commodore Barry Bridge.
BACKGROUND: Under the Delaware River Port Authority’s (DRPA) Bond Indenturesdated 1995, 1998 and 1999, the DRPA is obligated to inspect all DRPAfacilities every second calendar year; the Indenture further states thatan inspection report be submitted on or before October 1 of everysecond calendar year. In the past years, the Commissioners haveauthorized payment from the Revenue Fund for services rendered.The most recent biennial inspection of the Commodore Barry Bridgefacility occurred in the Summer of 2014. In order to satisfy theAuthority’s Bond Indenture and in order to assist in developing aplan for maintaining this facility, it is necessary to perform thisbiennial inspection of the Commodore Barry Bridge.
The work would include close visual “hands on” inspection of all
SUMMARY STATEMENT Professional Services for 2016O&M - 2/3/16 Biennial Inspection of the
Commodore Barry Bridge______________________________________________________________________________
bridge components and systems, preparation of a 2016 BiennialInspection Report for the Commodore Barry Bridge and completionof Structure Inventory and Appraisal forms and Bridge Managementforms as required by the Commonwealth of Pennsylvania and State ofNew Jersey, respectively.
The Authority publicly advertised its intent to retain a consultant andinvited interested firms to submit Statements of Qualifications.Sixteen (16) firms responded with Statements of Qualifications onApril 16, 2015. Five (5) firms were deemed qualified and were sent aformal Request for Proposal. Greenman-Pedersen, Inc. did notsubmit a technical proposal. A review committee of four (4) staffengineers evaluated the Proposals on the basis of Technical merit.
HNTB Corporation was the highest technically ranked firm. Theproposed Project Manager has previous experience with major bridgeinspection projects and has been responsive on past DRPA projects.HNTB Corporation’s Inspection Team has many years experienceinspecting bridges similar to those required for this contract. Overall,the team assembled by HNTB Corporation was found to possess thenecessary experience and qualifications to successfully complete theproject.
In accordance with the Delaware River Port Authority’s qualificationbased selection procedure, the Price Proposal was evaluated againstthe Engineer’s Estimate and that of other recommended firms. Basedon this evaluation and subsequent negotiation, HNTB Corporation’sprice was determined to be fair and reasonable.
SUMMARY: Amount: $654,000.00Source of Funds: Revenue FundCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 MonthsOther Parties Involved: N/AEstimated Number ofJobs Supported: 2
DRPA-16-020Operations and Maintenance Committee: February 2, 2016
Board Date: February 17, 2016Professional Services for 2016 Biennial
Inspection of the Commodore Barry Bridge
RESOLUTION
RESOLVED: That the Board of Commissioners of the Delaware River Port Authorityaccepts the Proposal of HNTB Corporation to provide ProfessionalServices for 2016 Biennial Inspection of the Commodore Barry Bridge andthat the proper officers of the Authority be and hereby are authorized tonegotiate an Agreement with HNTB Corporation for an amount not toexceed $654,000.00 as per the attached Summary Statement; and be itfurther
RESOLVED: The Chairman, Vice Chairman and the Chief Executive Officer mustapprove and are hereby authorized to approve and execute all necessaryagreements, contracts, or other documents on behalf of the DRPA. If suchagreements, contracts, or other documents have been approved by theChairman, Vice Chairman and Chief Executive Officer and if thereaftereither the Chairman or Vice Chairman is absent or unavailable, theremaining Officer may execute the said document(s) on behalf of DRPAalong with the Chief Executive Officer. If both the Chairman and ViceChairman are absent or unavailable, and if it is necessary to execute thesaid document(s) while they are absent or unavailable, then the ChiefExecutive Officer shall execute such documents on behalf of DRPA.
SUMMARY: Amount: $654,000.00Source of Funds: Revenue FundCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 MonthsOther Parties Involved: N/AEstimated Number ofJobs Supported: 2
MEMORANDUM
TO: O&M Committee Members
FROM: Michael P. Venuto, Chief Engineer
SUBJECT: Professional Services for 2016 Biennial Inspection of the Commodore BarryBridgeTechnical Proposal Evaluation, Findings and Recommendation Report
DATE: February 2, 2016
The Request for Qualifications (RFQs), which was posted on the Authority’s web-site, invitedconsultants to submit Statements of Qualifications (SOQs). Sixteen (16) firms submitted SOQson April 16, 2015.
Policy 303a outlines the procedure for Request for Proposal selection of consultants by theEngineering Department. The SOQ evaluation serves as a method for developing a “short list”of firms to receive a Request for Proposal (RFP). The Review Committee evaluated the SOQ’sand recommended soliciting Technical and sealed Price Proposals from the top ranked firms:Ammann & Whitney, Greenman-Pedersen, Inc, HAKS Engineers, Architects, and LandSurveyors, P.C., HNTB Corporation, and Pickering, Corts & Summerson, Inc.
The short listed firms were sent a RFP on August 14, 2015. The Technical Proposals andseparate sealed Price Proposals were received on September 22, 2015 from all the firms exceptGreenman-Pedersen, Inc.. The Review Committee, consisting of four (4) staff engineers,reviewed and evaluated the Technical Proposals.
HNTB Corporation was the highest technically ranked firm. The proposed Project Manager hasprevious experience with major bridge inspection projects and has been responsive on pastDRPA projects. Overall, the team assembled by HNTB Corporation was found to possess thenecessary experience and qualifications to successfully complete the project.
The Review Committee recommended that the Price Proposal be opened and negotiationscommence using other recommended firm’s Price Proposals and the Engineer’s Estimate in theamount of $600,000.00, as a guide. Price Proposals were opened on December 21, 2015.
DELAWARE RIVER PORT AUTHORITY
of Pennsylvania & New Jersey
Below are the Technical Proposal rankings, proposed hours and fees of these firms, along withthe Engineer’s estimate of hours.
Rank Firm HoursOriginal Price
ProposalNegotiated
Hours FeeEngineer’s Estimate 2900 $600,000
1 HNTB 3222 $694,000 3169 $654,000.002 HAKS 2909 $798,0003 Ammann & Whitney 2174 $787.0004 Pickering, Corts & Summerson 2695 $616,000
The Price Proposal from the highest technically ranked firm, HNTB Corporation, dated September22, 2015 was reviewed by Engineering Department staff. It was observed to be 16% higher than theEngineer’s Estimate. Negotiations commenced which resulted in a final Price Proposal in anamount of $654,000.00. Based on the Review Committee’s findings the Price Proposal of HNTBCorporation has been determined to be fair and reasonable and therefore the committeerecommends that an Engineering Services Agreement be issued to the highest technically rankedfirm, HNTB Corporation.
Based on a review of the Review Committee’s evaluation and supporting documentation, I concur
with the recommendation to engage HNTB Corporation of Philadelphia, PA in the amount of
$654,000.00 for this Agreement.
:sln
SUMMARY STATEMENT
ITEM NO.: DRPA-16-021 SUBJECT: Professional Services for 2016Biennial Inspection of PATCO
COMMITTEE: Operations and Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate an agreement withRemington & Vernick Engineers to provide engineering servicesrequired to perform the 2016 Biennial Inspection of the PATCOfacilities.
Amount: $353,000.00
Consultant: Remington & Vernick Engineers232 Kings Highway EastHaddonfield, NJ 08033
Other Consultants: HNTB CorporationTranSystems Corporation
Engineers Estimate: $375,000.00
PURPOSE: To provide consulting engineering services for the 2016 BiennialInspection of the PATCO facilities.
BACKGROUND: Under the Delaware River Port Authority’s (DRPA) Bond Indenturesdated 1995, 1998 and 1999, the DRPA is obligated to inspect all DRPAfacilities every second calendar year; the Indenture further states thatan inspection report be submitted on or before October 1 of everysecond calendar year. In the past years, the Commissioners haveauthorized payment from the Revenue Fund for services rendered.The most recent biennial inspection of the PATCO facilities occurredin the Summer of 2014. In order to satisfy the Authority’s BondIndenture and in order to assist in developing a plan for maintainingthis facility, it is necessary to perform this biennial inspection of thePATCO facilities.
The work includes a visual inspection to note the condition of allstructures, systems, and equipment comprising the PATCO TransitSystem. Included in this inspection are the track system, subwaytunnels, transit and vehicular bridges, retaining walls, embankments,
SUMMARY STATEMENT Professional Services for 2016O&M - 2/2/16 Biennial Inspection of PATCO______________________________________________________________________________
viaducts, storm drainage, fencing, parking lots, fare collection system,car shop, electric power and distribution, rapid transit cars,maintenance vehicles, supervisory and control systems, signal systemand communication system, preparation of a 2016 Biennial InspectionReport for PATCO. The vehicular bridge inspection will conform tothe National Bridge Inventory System and NJDOT InspectionCriteria.
The Authority publicly advertised its intent to retain a consultant andinvited interested firms to submit Statements of Qualifications. Three(3) firms responded with Statements of Qualifications on April 16,2015. Three (3) firms were deemed qualified and were sent a formalRequest for Proposal. A review committee of three (3) staff engineersevaluated the Proposals on the basis of Technical merit.
Remington & Vernick Engineers was the highest technically rankedfirm. The proposed Project Manager has previous experience withbridge inspection projects. Overall, the team assembled byRemington & Vernick Engineers was found to possess the necessaryexperience and qualifications to successfully complete the project.
In accordance with the Delaware River Port Authority’s qualificationbased selection procedure, the Price Proposal was evaluated againstthe Engineer’s Estimate and that of other recommended firms. Basedon this evaluation and subsequent negotiation, Remington & VernickEngineers price was determined to be fair and reasonable.
SUMMARY: Amount: $353,000.00Source of Funds: Revenue FundCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 MonthsOther Parties Involved: N/AEstimated Number ofJobs Supported: 2
DRPA-16-021Operations and Maintenance Committee: February 2, 2016
Board Date: February 17, 2016Professional Services for 2016 Biennial
Inspection of PATCO
RESOLUTION
RESOLVED: That the Board of Commissioners of the Delaware River Port Authorityaccepts the Proposal of Remington & Vernick Engineers to provideProfessional Services for 2016 Biennial Inspection of PATCO and that theproper officers of the Authority be and hereby are authorized to negotiatean Agreement with Remington & Vernick Engineers for an amount not toexceed $353,000.00, as per the attached Summary Statement; and be itfurther
RESOLVED: The Chairman, Vice Chairman and the Chief Executive Officer mustapprove and are hereby authorized to approve and execute all necessaryagreements, contracts, or other documents on behalf of the DRPA. If suchagreements, contracts, or other documents have been approved by theChairman, Vice Chairman and Chief Executive Officer and if thereaftereither the Chairman or Vice Chairman is absent or unavailable, theremaining Officer may execute the said document(s) on behalf of DRPAalong with the Chief Executive Officer. If both the Chairman and ViceChairman are absent or unavailable, and if it is necessary to execute thesaid document(s) while they are absent or unavailable, then the ChiefExecutive Officer shall execute such documents on behalf of DRPA.
SUMMARY: Amount: $353,000.00Source of Funds: Revenue FundCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 MonthsOther Parties Involved: N/AEstimated Number ofJobs Supported: 2
MEMORANDUM
TO: O&M Committee Members
FROM: Michael P. Venuto, Chief Engineer
SUBJECT: Professional Services for 2016 Biennial Inspection of PATCOTechnical Proposal Evaluation, Findings and Recommendation Report
DATE: February 2, 2016
The Request for Qualifications (RFQ’s), which was posted on the Authority’s web-site, invitedconsultants to submit Statements of Qualifications (SOQ’s). Three (3) firms submitted SOQs onApril 16, 2015.
Policy 303a outlines the procedure for Request for Proposal selection of consultants by theEngineering Department. The SOQ evaluation serves as a method for developing a “short list”of firms to receive a Request for Proposal (RFP). The Review Committee evaluated the SOQ’sand recommended soliciting Technical and sealed Price Proposals from the top ranked firms:HNTB Corporation, Remington and Vernick Engineers, and TranSystems Corporation.
The short listed firms were sent a RFP on August 14, 2015. The Technical Proposals andseparate sealed Price Proposals were received on September 23, 2015 from all the firms. TheReview Committee, consisting of three (3) staff engineers, reviewed and evaluated the TechnicalProposals.
Remington & Vernick Engineers was the highest technically ranked firm. The proposed ProjectManager has previous experience with bridge inspection projects. Overall, the team assembledby Remington & Vernick Engineers was found to possess the necessary experience andqualifications to successfully complete the project.
It was recommended that the Price Proposal be opened and negotiations commence using otherrecommended firm’s Price Proposals and the Engineer’s Estimate in the amount of $375,000.00as a guide. Price Proposals were opened on December 21, 2015.
DELAWARE RIVER PORT AUTHORITY
of Pennsylvania & New Jersey
Below are the Technical Proposal rankings, proposed hours and fees of these firms, along withthe Engineer’s estimate of hours.
Rank Firm HoursOriginal Price
ProposalNegotiated
Hours FeeEngineer’s Estimate 2500 $375,000
1 Remington & Vernick Engineers 2714 $353,0002 TranSystems Corporation 2413 $373,0003 HNTB Corporation 3066 $447,000
The Price Proposals from the three recommended firms were opened and the Price Proposal fromRemington & Vernick Engineers, dated September 23, 2015 was reviewed by EngineeringDepartment staff. It was observed to be 6% lower than the Engineer’s Estimate. Based on theReview Committee’s findings the Price Proposal of Remington & Vernick Engineers has beendetermined to be fair and reasonable and therefore the committee recommends that an EngineeringServices Agreement be issued to the highest technically ranked firm, Remington & VernickEngineers.
Based on a review of the Review Committee’s evaluation and supporting documentation, I concur
with the recommendation to engage Remington & Vernick Engineers of Haddonfield, NJ, in the
amount of $353,000.00 for this Agreement.
:sln
SUMMARY STATEMENT
ITEM NO.: DRPA-16-022 SUBJECT: Design Services for BenjaminFranklin Bridge Main CableInvestigation and Dehumidification
COMMITTEE: Operations & Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate an agreement withWeidlinger Associates, Inc. to investigate the condition and design adehumidification system for the suspension cables on the BenjaminFranklin Bridge.
Amount: $3,541,700
Consultant: Weidlinger Associates, Inc.
Other Consultants: Ammann and Whitney Consulting EngineersModjeski and Masters, Inc.T.Y. Lin International
Engineers Estimate: $3,890,000
PURPOSE: To provide consulting engineering services for an investigation of theinterior condition of the main suspension cable sections, design adehumidification system for the suspension cables, and upgrade thedesign of the HVAC system for the existing dehumidified anchoragesof the Benjamin Franklin Bridge.
BACKGROUND: The Benjamin Franklin Bridge was constructed in the 1920’s andopened to traffic in 1926. The two (2) main suspension cables are partof the original construction and are relied upon to support the weightof the bridge deck, including the weight of vehicular traffic andPATCO trains which traverse the bridge. The condition of the cablesare monitored regularly and visually inspected on a periodic basis. Adehumidification system for the cables from anchorage to anchorageand upgrades the existing HVAC system in the anchorages isrecommended to enhance and supplement the corrosion protectionand extend the useful service life of the main cables.
The Authority publicly advertised its intent to retain a consultant and
SUMMARY STATEMENT Design Services for BFB MainO&M 2/2/16 Cable Investigation and
Dehumidification______________________________________________________________________________
invited interested firms to submit Statements of Qualifications. Four(4) firms responded with Statements of Qualifications on August 29,2013. All four (4) firms were deemed qualified and were sent a formalRequest for Proposal. A review committee of three (3) staff engineersevaluated the Proposals on the basis of Technical merit.
Weidlinger Associates was the highest technically ranked firm.Weidlinger’s team has experience in cable investigation anddehumidification system design, and the proposed project managerhas previous experience with cable investigation projects. Overall, theteam assembled by Weidlinger Associates was found to possess thenecessary experience and qualifications to successfully complete theproject.
In accordance with the Delaware River Port Authority’s qualificationbased selection procedure, the Price Proposal was evaluated againstthe Engineer’s Estimate and that of other recommended firms. Basedon this evaluation and subsequent negotiation, Weidlinger’s price wasdetermined to be fair and reasonable.
It is recommended that an engineering services agreement benegotiated with Weidlinger Associates for the costs and associated feesnot to exceed $3,541,700 to provide engineering services in accordancewith the Request for Proposal.
SUMMARY: Amount: $3,541,700Source of Funds: 2013 Revenue BondsCapital Project #: BF1306Operating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: Design and Inspection Services, 16 months
from issuance of Notice to Proceed; Biddingand Award; and Construction SupportServices approximately 2 years fromissuance of Contractor Notice to Proceed
Other Parties Involved: N/AEstimated Number ofJobs Supported: 6
DRPA-16-022Operations & Maintenance Committee: February 2, 2016
Board Date: February 17, 2016Design Services for BenjaminFranklin Bridge Main Cable
Investigation and Dehumidification
RESOLUTION
RESOLVED: That the Board of Commissioners of the Delaware River Port Authorityaccepts the Proposal of Weidlinger Associates, Inc. to investigate thecondition and design a dehumidification system for the suspension cableson the Benjamin Franklin Bridge and that the proper officers of theAuthority be and hereby are authorized to negotiate an Agreement withWeidlinger Associates for an amount not to exceed $3,541,700, as per theattached Summary Statement; and be it further
RESOLVED: The Chairman, Vice Chairman and the Chief Executive Officer mustapprove and are hereby authorized to approve and execute all necessaryagreements, contracts, or other documents on behalf of the DRPA. If suchagreements, contracts, or other documents have been approved by theChairman, Vice Chairman and Chief Executive Officer and if thereaftereither the Chairman or Vice Chairman is absent or unavailable, theremaining Officer may execute the said document(s) on behalf of DRPAalong with the Chief Executive Officer. If both the Chairman and ViceChairman are absent or unavailable, and if it is necessary to execute thesaid document(s) while they are absent or unavailable, then the ChiefExecutive Officer shall execute such documents on behalf of DRPA.
SUMMARY: Amount: $3,541,700Source of Funds: 2013 Revenue BondsCapital Project #: BF1306Operating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: Design and Inspection Services, 16 months
from issuance of Notice to Proceed; Biddingand Award; and Construction SupportServices approximately 2 years fromissuance of Contractor Notice to Proceed
Other Parties Involved: N/AEstimated Number ofJobs Supported: 6
MEMORANDUM
TO: O&M Committee Members
FROM: Michael P. Venuto, Chief Engineer
SUBJECT: Professional Service Selection forDesign Services for BFB Main Cable Investigation and DehumidificationTechnical Proposal Evaluation, Findings and Recommendation Report
DATE: February 2, 2015
The Request for Qualifications (RFQs), which was posted on the Authority’s web-site, invitedconsultants to submit Statements of Qualifications (SOQs). Four (4) firms submitted SOQs onAugust 29, 2013.
Policy 303a outlines the procedure for Request for Proposal selection of consultants by theEngineering Department. The SOQ evaluation serves as a method for developing a “short list”of firms to receive a Request for Proposal (RFP). The Review Committee evaluated the SOQ’sand recommended soliciting Technical and sealed Price Proposals from all four firms: Ammannand Whitney, Modjeski and Masters, T.Y. Lin International, and Weidlinger Associates.
The short listed firms were sent a RFP on September 3, 2014. The Technical Proposals andseparate sealed Price Proposals were received on October 27, 2014 from four (4) firms. TheReview Committee, consisting of three (3) staff engineers, reviewed and evaluated the TechnicalProposals.
Weidlinger Associates was the highest technically ranked firm. Weidlinger’s team hasexperience in cable investigation and dehumidification system design, and the proposed projectmanager has previous experience with cable investigation projects. Overall, the team assembledby Weidlinger Associates was found to possess the necessary experience and qualifications tosuccessfully complete the project.
The Review Committee recommended that the Price Proposal be opened and negotiationscommence using other recommended firm’s Price Proposals and the Engineer’s Estimate in theamount of $3,890,000, as a guide.
The Technical Proposal rankings, proposed hours and fees of these firms, along with theEngineer’s estimate of hours are shown in the following table.
DELAWARE RIVER PORT AUTHORITY
of Pennsylvania & New Jersey
Rank Firm Hours Original PriceProposal
NegotiatedHours Fee
Engineer’s Estimate 12,000 $3,890,0001 Weidlinger Associates 17,166 $4,702,302 12,650 $3,541,6632 Modjeski and Masters 9,231 $2,596,7933 Amman and Whitney 11,588 $3,942,3884 T.Y. Lin International 18,665 $5,252,313
The Price Proposal from the highest technically ranked firm, Weidlinger Associates, was reviewedby Engineering Department staff. It was observed to be 21% higher than the Engineer’s Estimate.Weidlinger Associates, Inc.’s cost proposal over-estimated the number of hours required forinspecting the cables and designing the dehumidification system. Negotiations commenced whichresulted in a final Price Proposal in an amount of $3,541,663. Based on the Review Committee’sfindings the Price Proposal of Weidlinger Associates has been determined to be fair and reasonableand therefore the committee recommends that an Engineering Services Agreement be issued to thehighest technically ranked firm, Weidlinger Associates.
Based on a review of the Review Committee’s evaluation and supporting documentation, I concur
with the recommendation to engage Weidlinger Associates of New York, NY, in the amount of
$3,541,700 for this Agreement.
SUMMARY STATEMENT
ITEM NO. DRPA-16-023 SUBJECT: Contract No. BF-45-2016,Benjamin Franklin Bridge 5th StreetTunnel Priority Wall Repairs
COMMITTEE: Operations & Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate a construction contractwith the firm of JPC Group, Inc. to perform priority concreterehabilitation of the Benjamin Franklin Bridge 5th Street Tunnel(Philadelphia) portal walls, installation of a bridge barrier and otherassociated work.
Amount: $3,352,998.00
Contractor: JPC Group, Inc.228 Blackwood Barnsboro RoadBlackwood, NJ 08012
Other Bidders: A.P. Construction $4,018,905.00South State, Inc. $4,262,594.75Railroad Construction $4,331,245.00Company, Inc.Seravalli Inc. Contractors $4,337,700.00
Engineers Estimate: $4,905,572.50
PURPOSE: To repair deteriorated concrete of the portal walls and installation of abridge barrier in the Benjamin Franklin Bridge 5th Street Tunnel(Philadelphia).
BACKGROUND: While the Contractor was performing Contract No. BF-37-2013,concrete deterioration of the portal walls was observed and confirmedby sounding. The progression of the work under the existing contracthas been stopped because the wall surfaces need to be rebuilt. This wasan unforeseen condition requiring an extensive cost increase and giventhe nature of the work it is advantageous to the Authority to rebid theproject.
SUMMARY STATEMENT Contract No. BF-45-2016, BenjaminO&M 2/2/16 Franklin Bridge 5th Street Tunnel Priority
Wall Repairs______________________________________________________________________________
The work under this contract will include demolition of deterioratedconcrete of the portal walls, installation of a bridge barrier, blastcleaning and painting the lead coated steel surfaces of the concreteencased columns and overhead stringers, sidewalk reconstruction,replacement of tunnel lighting, crack repairs and other associatedwork.
This Summary Statement and Resolution will be amended on receiptof the bids and prior to the February 17, 2016 Board meeting.
The project was publicly advertised and bid documents were offered tothe public beginning on February 1, 2016 with a bid opening date ofFebruary 11, 2016. Ten (10) sets of documents were sold. A total of five(5) bids were received. The lowest responsive and responsible bid wassubmitted by JPC Group, Inc. in the amount of $3,352,998.00.
Staff has completed the evaluation of bids and recommends that thecontract be awarded to JPC Group, Inc. in the amount of $3,352,998.00as the lowest responsive and responsible bidder.
SUMMARY: Amount: $3,352,998.00Source of Funds: 2013 Revenue BondsCapital Project #: BF1002Operating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 100 calendar daysOther Parties Involved: N/AEstimated Number ofJobs Supported: 100
DRPA-16-023Operations & Maintenance Committee: February 2, 2016
Board Date: February 17, 2016Contract No. BF-45-2016, Benjamin Franklin
Bridge 5th Street Tunnel Priority Wall Repairs
RESOLUTION
RESOLVED: That the Board of Commissioners of the Delaware River Port Authorityaccepts the bid of JPC Group, Inc. to perform priority concreterehabilitation of the Benjamin Franklin Bridge 5th Street Tunnel(Philadelphia) portal walls, installation of a bridge barrier and otherassociated work, and that the proper officers of the Authority be and herebyare authorized to negotiate a contract with JPC Group, Inc. for the requiredwork in an amount not to exceed $3,352,998.00, as per the attached SummaryStatement; and be it further
RESOLVED: The Chairman, Vice Chairman and the Chief Executive Officer mustapprove and are hereby authorized to approve and execute all necessaryagreements, contracts, or other documents on behalf of the DRPA. If suchagreements, contracts, or other documents have been approved by theChairman, Vice Chairman and Chief Executive Officer and if thereaftereither the Chairman or Vice Chairman is absent or unavailable, theremaining Officer may execute the said document(s) on behalf of DRPAalong with the Chief Executive Officer. If both the Chairman and ViceChairman are absent or unavailable, and if it is necessary to execute the saiddocument(s) while they are absent or unavailable, then the Chief ExecutiveOfficer shall execute such documents on behalf of DRPA.
SUMMARY: Amount: $3,352,998.00Source of Funds: 2013 Revenue BondsCapital Project #: BF1002Operating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 100 calendar daysOther Parties Involved: N/AEstimated Number ofJobs Supported: 100
SUMMARY STATEMENT
ITEM NO. : DRPA-16-024 SUBJECT: PARTSWG TransitContract Intelligence Analysts, Phase IV
COMMITTEE: Operations & Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the DRPA Commission authorizes staff to enter into anagreement not to exceed $620,000 with CRA Inc., a GSAvendor, to provide contract, transit related, homeland security,intelligence analytical services on behalf of the PhiladelphiaArea Regional Transit Security Working Group agenciesutilizing FY 2015 federal transit security grant funding.
PURPOSE: To enter into an agreement with CRA Inc. on behalf of thePhiladelphia Area Regional Transit Security Working Groupto provide real-time intelligence services with regard to transittips, crime data, and homeland security incidents. FY 2015DHS Transit Security Grant Program funding is providing thefull amount of the contract cost.
BACKGROUND: The Transit Security Grant Program (TSGP) provides grantfunding to the nation’s key high-threat urban areas to enhancesecurity measures for their critical transit infrastructureincluding bus, ferry and rail systems. It is one of six grantprograms that constitute the Department of HomelandSecurity (DHS) transportation infrastructure securityactivities. These grant programs are part of a comprehensiveset of measures authorized by Congress and implemented bythe Administration to help strengthen the nation’s criticalinfrastructure against risks associated with potential terroristattacks. The TSGP is an important component of theDepartment’s effort to enhance the security of the Nation’scritical infrastructure. The program provides funds to ownersand operators of transit systems (which include intra-city bus,commuter bus, and all forms of passenger rail) to protectcritical surface transportation infrastructure and the travelingpublic from acts of terrorism, major disasters, and otheremergencies. The Philadelphia Region encompassesSoutheastern Pennsylvania, Southern New Jersey, and aportion of Delaware. The Philadelphia Region is considered aTier I region, that is it receives the highest priority for thesefederal grants. The Philadelphia Area Regional Transit
SUMMARY STATEMENT PARTSWG Transit Contract IntelligenceO&M 2/2/2016 Analysts, Phase IV
Security Working Group (PARTSWG) is comprised ofrecipient representatives of DRPA/PATCO, SEPTA, DART,and NJT. The DRPA has been the chair of the working groupsince its inception in 2005 and has been applying for allregional projects. PARSTWG votes to share projects as aregional effort. This status as a regional project often allowsDRPA/PATCO to receive aid in the area which it would nothave qualified for alone. Additionally, since the DRPA isadministering these regional projects, the agency is eligible forthe Management and Administration portion of these grants.
This project sustains the “transit desk” or “transit bureau” atthe Delaware Valley Intelligence Center “DVIC” by providingthe necessary trained intelligence analysts as staff for transitrelated intelligence activities. The desk reports significant andrelevant findings to the prescribed representatives from thesignatories of the PARTSWG Regional CooperativeAgreement; to other “fusion centers” such as the PennsylvaniaCriminal Intelligence Center (PaCIC), the New JerseyRegional Operations Intelligence Center (NJ ROIC); as well asthe FBI’s Joint Terrorism Task Force (JTTF). The TransitBureau creates a new sector specific capability in order toanalyze data, review trends and incidents, and process anddistribute this raw intelligence into usable, actionable, andlegal reports used to detect, deter, and prevent homelandterroristic acts on the region’s transit rail lines, buses, andtrolleys. The City of Philadelphia (Philadelphia PoliceDepartment) is the project manager for this project and willhave routine and daily control of the contractor’s employees insupport of their mission.
SUMMARY: Amount: $620,000 (100% grant funded)Source of Funds: FY 2015 TSGP GrantCapital Project# N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 08/31/2018Other Parties Involved: City of Philadelphia, FEMA,
TSA, DHS, PARTSWG, DRPA
DRPA-16-024Operations & Maintenance Committee: February 2, 2016
Board Date: February 17, 2016PARTSWG Transit Contract Intelligence Analysts, Phase IV
RESOLUTION
RESOLVED: That the DRPA Commission authorizes staff to enter into anagreement not-to-exceed $620,000 with CRA Inc., a GSAvendor to provide contract, transit related, homeland security,intelligence analytical services on behalf of the PhiladelphiaRegional Transit Security Working Group agencies who aresignatories to the PARTSWG Regional CooperativeAgreement using FY 2015 federal transit security grantproceeds.
RESOLVED: The Chair, Vice Chair and the Chief Executive Officer mustapprove and are hereby authorized to approve and execute allnecessary agreements, contracts, or other documents on behalfof the DRPA. If such agreements, contracts, or otherdocuments have been approved by the Chair, Vice Chair andChief Executive Officer and if thereafter either the Chair orVice Chair is absent or unavailable, the remaining Officer mayexecute the said document(s) on behalf of DRPA along with theChief Executive Officer. If both the Chair and Vice Chair areabsent or unavailable, and if it is necessary to execute the saiddocument(s) while they are absent or unavailable, then theChief Executive Officer shall execute such documents on behalfof DRPA.
SUMMARY: Amount: $620,000 (100% grant funded)Source of Funds: FY 2015 TSGP GrantCapital Project# N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 08/31/2018Other Parties Involved: City of Philadelphia, FEMA,
TSA, DHS, PARTSWG, DRPA
SUMMARY STATEMENT
ITEM NO.: DRPA-16-025 SUBJECT: One (1) 2016 Johnston VTStreet Sweeper
COMMITTEE: Operations and Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate a purchase contract withU.S. Municipal, 461 Glennie Circle King of Prussia, PA.,19406, for thepurchase of one (1) 2016 Johnston VT Street Sweeper in the amount of$269,758.00.
PURPOSE: To provide replacement 2016 Johnston VT Street Sweeper in order tokeep the Authority’s fleet operational and to maintain the DRPAfacilities.
BACKGROUND: The 2016 Johnston VT Street Sweeper is being purchased under theCommonwealth of Pennsylvania’s Co Star Contract #019-025. Pastexperience has shown that state contract pricing is the most cost effectivemeans of purchasing vehicle and equipment because pricing is quantitybased. The 2016 Capital Budget includes funding for the purchase ofOne (1) Johnston VT Street Sweeper.
SUMMARY: Amount: $269,758.00Source of Funds: General FundCapital Project #: F66116Operating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: N/A
DRPA-16-025Operations & Maintenance Committee: February 2, 2016
Board Date: February17, 2016One (1) 2016 Johnston VT Street Sweeper
RESOLUTION
RESOLVED: That the Board authorizes staff to negotiate a contract with, U.S.Municipal, 461 Glennie Circle King of Prussia, PA.,19406, for thepurchase of one (1) 2016 Johnston VT Street Sweeper in the amount of$269,758.00.
RESOLVED: The Chair, Vice Chair and the Chief Executive Officer must approveand are hereby authorized to approve and execute all necessaryagreements, contracts, or other documents on behalf of the DRPA. Ifsuch agreements, contracts, or other documents have been approved bythe Chair, Vice Chair and Chief Executive Officer and if thereaftereither the Chair or Vice Chair is absent or unavailable, the remainingOfficer may execute the said document(s) on behalf of DRPA along withthe Chief Executive Officer. If both the Chair and Vice Chair are absentor unavailable; and if it is necessary to execute the said document(s)while they are absent or unavailable, then the Chief Executive Officershall execute such documents on behalf of DRPA.
SUMMARY: Amount: $269,758.00Source of Funds: General FundCapital Project #: F66116Operating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: N/A
SUMMARY STATEMENT
ITEM NO.: DRPA-16-026 SUBJECT: (2) 2016 Kubota TractorModel M7060HDC 2016 Kubota Tractor(1) Model B2650HSDC
COMMITTEE: Operations and Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate a purchase contract withCH Waltz Sons, Inc., 6570 State Road 973 East, Cogan Station, PA,17728, for the purchase of two (2) 2016 Kubota Tractors, model #M7060HDC in the amount of $97,194.90 ($48,597.45 each) and one (1)Kubota Tractor model #B2650HSDC in the amount of $33,873.58. Totalprice for all three (3) Kubota Tractors is $131,068.48.
PURPOSE: To provide replacement Kubota Tractors in order to keep Authorityfleet operational, maintain facility roadways and to provide a safepassage during the winter season.
BACKGROUND: The 2016 Kubota Tractors are being purchased under theCommonwealth of PA Contract #4400011361. Past experience hasshown that state contract pricing is the most cost effective means ofpurchasing vehicle and equipment because pricing is quantity based.The 2016 Capital Budget includes funding for the purchase of three (3)Kubota tractors.
SUMMARY: Amount: $131,068.48Source of Funds: General FundCapital Project #: B16003, B16009, B16013Operating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: N/A
DRPA-16-026Operations & Maintenance Committee: February 2, 2016
Board Date: February 17, 2016(2) 2016 Kubota Tractor Model M7060HDC(1) 2016 Kubota Tractor Model 2650HSDC
RESOLUTION
RESOLVED: That the Board authorizes staff to negotiate a purchase contract withCH Waltz Sons, Inc., 6570 State Road 973 East, Cogan Station, PA,17728, for the purchase of two (2) 2016 Kubota Tractors model#M7060HDC in the amount of $97,194.90 ($48,597.45 each) and one (1)Kubota Tractor model #B2650HSDC in the amount of $33,873.58. Totalprice for all three (3) Kubota Tractors is $131,068.48.
RESOLVED: The Chair, Vice Chair and the Chief Executive Officer must approveand are hereby authorized to approve and execute all necessaryagreements, contracts, or other documents on behalf of the DRPA. Ifsuch agreements, contracts, or other documents have been approved bythe Chair, Vice Chair and Chief Executive Officer and if thereaftereither the Chair or Vice Chair is absent or unavailable, the remainingOfficer may execute the said document(s) on behalf of DRPA along withthe Chief Executive Officer. If both the Chair and Vice Chair are absentor unavailable; and if it is necessary to execute the said document(s)while they are absent or unavailable, then the Chief Executive Officershall execute such documents on behalf of DRPA.
SUMMARY: Amount: $131,068.48Source of Funds: General FundCapital Project #: B16003, B16009, B16013Operating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: N/A
SUMMARY STATEMENT
ITEM NO.: DRPA-16-027 SUBJECT: (3) 2016 Ford Escapes and(1) 2016 Ford Transit Van
COMMITTEE:
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate a purchase contract withMcCafferty Ford, 6320 Carlisle Pike, Mechanicsburg, PA, for thepurchase of three (3) 2016 Ford Escapes AWD Vehicles in the amount of($23,407.00) $70,221.00 and one (1) Ford 2016 Transit Van 250($35,000.00) total of $105,221.00.
PURPOSE: To provide replacement vehicles to keep the Authorities fleet operationaland able to maintain the facilities and roadways.
BACKGROUND: The 2016 Ford Escapes and Ford Transit van vehicles are beingpurchased under PA -State C0-Stars Contract 026-055. Past experiencehas shown that state contract pricing is the most cost effective means ofpurchasing vehicles and equipment because pricing is quantity based.The 2016 Capital Budget includes funding for the purchase of three (3)Escapes and one (1) Ford Transit Van Vehicle; for the PATCO &Construction & Maintenance Department.
SUMMARY: Amount: $105,221.00Source of Funds: General FundCapital Project #: F00716, F56516, F03016, F03316Operating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: N/A
DRPA-16-027Operations & Maintenance Committee: February 2, 2016
Board: February 17, 2016Three (3) 2016 Ford Escape
and One (1) Ford Transit Van
RESOLUTION
RESOLVED: That the Board authorizes staff to negotiate a contract with, McCaffertyFord, 6320 Carlisle Pike, Mechanicsburg, PA for the purchase ofthree(3) 2016 Ford Escapes AWD Vehicles in the amount of ($23,407.00)$70,221.00 and one (1) Ford 2016 Transit Van 250 ($35,000.00) total of$105,221.00.
RESOLVED: The Chair, Vice Chair and the Chief Executive Officer must approveand are hereby authorized to approve and execute all necessaryagreements, contracts, or other documents on behalf of the DRPA. Ifsuch agreements, contracts, or other documents have been approved bythe Chair, Vice Chair and Chief Executive Officer and if thereaftereither the Chair or Vice Chair is absent or unavailable, the remainingOfficer may execute the said document(s) on behalf of DRPA along withthe Chief Executive Officer. If both the Chair and Vice Chair are absentor unavailable and if it is necessary to execute the said document(s) whilethey are absent or unavailable, then the Chief Executive Officer shallexecute such documents on behalf of DRPA.
SUMMARY: Amount: $105,221.00Source of Funds: General FundCapital Project #: F00716, F56516, F03016, F03316Operating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: N/A
FINANCE
FREE STATE REPORTING, INC.Court Reporting Transcription
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DELAWARE RIVER PORT AUTHORITY
Finance Committee Meeting
One Port Center2 Riverside DriveCamden, New Jersey
Wednesday, January 13, 2016
Commissioners:
Jeffrey Nash, Esq., Finance Committee ChairmanTimothy A. Reese, Pennsylvania State Treasurer
(via telephone)Elinor HaiderRohan HepkinsVictoria Madden (for Pennsylvania Auditor General
Eugene DePasquale) (via telephone)Charles FentressRicardo Taylor
Others Present:
Amy Herbold, Senior Counsel, New Jersey Governor'sAuthorities Unit
Chelsea Rosebud Guzowski, Director of Economic andStrategic Initiatives, Pennsylvania Office of theBudget
David Dix, Assistant to DRPA/PATCO Chairman Ryan BoyerKatherine Clupper, Managing Director, Public
Financial ManagementKim Whelan, President, Acacia Financial Group
DRPA/PATCO Staff:
John Hanson, Chief Executive OfficerMaria Wing, Deputy Chief Executive OfficerRaymond Santarelli, General Counsel & Corporate
SecretaryKristen Mayock, Deputy General CounselStephen Holden, Deputy General CounselKathleen Vandy, Assistant General CounselRichard Mosback, Assistant General Counsel
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DRPA/PATCO Staff: (continued)
James White, Chief Financial OfficerToni Brown, Chief Administrative OfficerDavid Gentile, Inspector GeneralChristina Maroney, Director, Strategic InitiativesKyle Anderson, Director, Corporate CommunicationsJohn Rink, General Manager, PATCOOrville Parker, Manager, Budget/Financial AnalysisAmy Ash, Contract Administrator, Contract
AdministrationSusan Squillace, Manager, Procurement & Stores,
DRPA/PATCOSheila Milner, Administrative CoordinatorElizabeth McGee, Acting Records Manager
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I N D E X
Page
Roll Call 4
Financial Update 5
Actionable Items (SS&Rs)
Authorization for Extension of StatedExpiration Dates of Letters of Credit for2008A, 2010B, and 2010C Revenue Refunding Bondsand Disseminate RFPs for Alternate orReplacement Liquidity Structures for 2008B,2010A, 2010B, and 2010C Revenue Refunding Bonds 29
Modification of Current Temporary WorkersContracts 35
Records Management Consultant Services 40
Executive Session 42
Compensation for Specialty Legal Services 43
Adjournment 44
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P R O C E E D I N G S
(9:08 a.m.)
CHAIRMAN NASH: I'm going to call the meeting
of the Finance Committee to order. Please call the
roll.
MR. SANTARELLI: Thank you, Mr. Chairman.
CHAIRMAN NASH: You're welcome.
MR. SANTARELLI: Chairman Nash?
CHAIRMAN NASH: Here.
MR. SANTARELLI: Treasurer Reese?
TREASURER REESE: Here.
MR. SANTARELLI: Commissioner Hepkins?
COMMISSIONER HEPKINS: Here.
MR. SANTARELLI: Commissioner Haider?
COMMISSIONER HAIDER: Here.
MR. SANTARELLI: Commissioner Madden?
COMMISSIONER MADDEN: Here.
MR. SANTARELLI: Okay. Commissioner DiAntonio
notified us he won't be joining us this morning, and
Commissioner Sweeney also. You have a quorum.
CHAIRMAN NASH: Thank you very much. Happy
New Year, everybody.
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COMMISSIONER HEPKINS: Happy New Year.
CHAIRMAN NASH: We're going into another great
year at the Delaware River Port Authority and PATCO.
We have four items on the agenda today. First is the
financial update by Mr. White.
MR. WHITE: Good morning, everyone, and a
Happy New Year. I'd like to take you through two
documents this morning. Number one is the financial
summary, which hopefully everybody has a copy of. And
then I just wanted to take you through very, very
quickly, some of the financial accomplishments and
achievements that DRPA staff and the Finance Committee
achieved in 2015.
If you're looking at the DRPA Unaudited
Financial Summary in the January 2016, Finance
Committee meeting package, you'll see DRPA traffic and
toll revenues are at least two percent above both in
terms of traffic and revenues. This is through
October year-to-date.
If you look at the traffic increase or
decrease from the prior month, there is a 116,000
vehicle increase from the previous month, and the
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revenues were up $526,000 from the previous month.
What you'll see in a few minutes is that we just had
an exceptional year in terms of traffic. This was
partially due to the lack of inclement weather, but
also our growth was even higher than anticipated by
the traffic study we did a few years ago.
Year-to-date through November 30th, PATCO
ridership is above last year by 105,000 riders and net
passenger revenues are $500,000 above last year. So,
between the DRPA and PATCO, these are exceptional
numbers, from my perspective.
CHAIRMAN NASH: I have a question on the
bridge tolls. I saw an interesting statistic that the
Tacony-Palmyra has been down about five percent since
they raised their tolls. What's the increase, if any,
to the Betsy Ross and other bridges because of that?
MR. WHITE: Actually, we have seen some
increase. As you look at some of the overall traffic
numbers, we’re up around two percent. We have done
some spot looking at that, and I think that we have
seen some changes in terms of Betsy Ross, but I do not
believe that we have seen a five percent increase
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related to that.
So there has been an increase. There has been
a shift of some sort. But all of that traffic has not
come to the Betsy Ross, from what I can see.
MR. HANSON: The Betsy Ross Bridge traffic is
up. It's something that both Finance and Val Bradford
at the Ben Franklin and Betsy Ross Bridges have
identified. And although the trend is that our
traffic is increasing, typically the Betsy Ross Bridge
has not -- since the tolls have gotten so far out of
alignment -- participated in those types of increases.
So it is a significant thing that we're seeing an
increase there.
I would say that because of the fact that the
Betsy Ross Bridge hasn't typically participated in
those increases that it probably is due, to a large
extent, to the increase in tolls on the Tacony-Palmyra
Bridge.
MR. WHITE: In terms of budget versus actual,
DRPA traffic was 1.2 million vehicles through October
31st, which was higher than budget. DRPA toll revenues
were a whopping $12.1 million above budget. What we
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typically do when we budget for traffic and for
revenues is to take a decrement of around $3 million,
in anticipation of negative traffic and revenues due
to snow. We did not really see that impact.
But the large increase in the toll revenues
especially is due to the fact that: number one, we
tend to be conservative in our estimates; and, number
two, traffic is around 2, almost 2½ percent above last
year and the average toll is up. So, we've had an
exceptional year in terms of traffic and I believe
that that trend will continue once we get the November
and December numbers.
TREASURER REESE: Amazing numbers, Jim.
MR. WHITE: Yes, it is, really. I mean I'm
very, very surprised at the numbers at this point.
And, again, even if you look at the 2016 budget, we
still tend to be fairly conservative. But if you look
at the traffic study that we had done a couple of
years ago, they're expecting roughly a .4 percent
increase over a period of years.
TREASURER REESE: Right.
MR. WHITE: And we've actually seen that
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increase in the traffic in one year, as opposed to a
five-year trend.
TREASURER REESE: Right, in really almost less
than a year.
MR. WHITE: Yes, exactly right, exactly right.
So, of course, I'm happy, and that means more money
going to the General Fund and more money to fund the
Capital Program.
On the PATCO ridership versus budget through
November, it's minus 134,000 passengers. Net revenues
are up $206,000 in terms of net passenger revenues,
again against budget. John, do you want to comment on
the December numbers?
MR. RINK: Sure. Ridership for the entire
year of 2015 was more than 162,000 over last year's
budget, so that’s a 1.6 percent increase. In
actuality, we were under our budget by 30,500 or .3
percent. However, if you take into account that on
June 24, 2015, we lost almost 27,000 riders due to our
storm, we are within 3,000 of our budget figure. So,
good signs on our end.
MR. WHITE: John, correct me if I'm wrong, but
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I would say that over the last couple of months we're
seeing a recovery on the ridership side to an extent
that I didn't expect us to get up to -- the budgeted
numbers. But we effectively have done that except for
the inclement weather. Right?
MR. RINK: Yes. We're ending the year 2015 on
a positive trend; ending upwards for the first time in
four years.
COMMISSIONER HEPKINS: Didn't we take a hit
with the papal visit, too?
MR. RINK: We did have increased ridership for
Saturday and Sunday, but that offset the losses on
Monday and Friday.
MR. WHITE: The next couple of things I want
to focus on are in terms of the Project Fund and the
General Fund --
CHAIRMAN NASH: Can I ask you a question
before you get off of PATCO?
MR. WHITE: Yes, sure.
CHAIRMAN NASH: What was the estimated revenue
budgeted for this year? We budgeted in 2015, $9.3/
$9.4 million?
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MR. WHITE: I'm not sure I have that total.
CHAIRMAN NASH: You don't have to get it this
minute, but I'm curious to see if you are staying on
the 2015 budgeted number or if you went back to the
actuals.
MR. WHITE: For our 2015 budget, we had PATCO
fares and revenues of $26,007,000. Now, I don't have
that broken out between the advertising and the fares
there, so I'll have to come back to you to give you
more clarification.
MR. HANSON: What I recall in my conversations
with John Lotierzo is that we had budgeted higher
ridership for 2016, right?
MR. RINK: Yes.
MR. HANSON: And 2015 in anticipation. I
think that's the question, right? Both because of the
ridership trend and because we're no longer doing the
Track Rehab Project, we've budgeted a higher number of
riders. I'm not exactly sure what that number is, but
I know I had that conversation with John Lotierzo, who
is the director of Finance.
MR. WHITE: Yes, that's correct. For 2016 the
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numbers are higher as a result of being finished with
the Track Rehab Project, that's correct.
I want to call your attention again to the
Project Fund Balances and the General Fund balances.
One thing you'll note in terms of the General Fund --
and I'll talk about this in a minute -- the General
Fund increased around $48 million last year; that’s ,
again the unaudited numbers. You'll see a decrease
during the month of December, but that decrease is
because we contributed $5 million to our OPEB, Other
Post-Employment Benefit Trust Fund. So, in effect,
the December numbers were up as well.
MR. HANSON: I just want to be clear on that
point; that's money we still have. We just moved it
out of the General Fund and into an irrevocable trust
for other post-employment benefits. The cash that we
possess hasn't decreased. We just moved it and
dedicated it to the purpose of other post-employment
benefits.
MR. WHITE: Right. If you look at the total
bond debt by type, as of December 31, total debt is
roughly $1.5 billion. As of January 1st, that number
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is going to drop by another $50 million as our bonds
amortize downwards and we make various principal
payments on January the 1st.
If you will look at our total swap valuation,
you'll see that that swap valuation is a negative
$140 million. That's a change from December 31, 2014.
Again, even as the bonds amortize, so does the
notional value on the swaps. So, as of January 1st,
the notional principal amount of the swaps is down to
around $448 million; this is versus roughly $800
million when the swaps first were initiated or
executed.
MR. HANSON: With the way our swap is set up,
the other determinative value is that as interest
rates rise value will decrease. But we did just
amortize a significant piece of it at the end of last
year/beginning of this year.
CHAIRMAN NASH: Jim, can you give us a brief
update on Moody's standard rules as to our bond
rating?
MR. WHITE: Yes. In terms of our bond rating,
S&P moved our ratings in 2013. S&P affirmed our bond
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ratings in December 2014. At the end of the year,
John Hanson and I had some conversations with the new
analyst, who reaffirmed our rating. That's an area I'd
like to target for this year and perhaps have more
dialogue with Moody's to see if we can perhaps improve
the Moody's ratings. But our ratings are very strong.
They look at a number of things, but certainly
when you look at Moody's, they cited the swap novation
that we did, which puts us in a much more secure place
in terms of our swap exposure. They look at our
liquidity -- the amount of funds that we have from a
liquid perspective. They also made mention of those
funds which we segregated into a pay-go Capital Fund
and the fact that over the past 10-plus years we have
been under budget. Those were the factors that they
cited in reaffirming our numbers.
MR. HANSON: I've spent a lot of time talking
to the rating agencies over the years about our bond
rating and Jim has also been very involved. We have
our financial advisors are with us today: Kathy
Clupper from Public Financial Management and Kim
Whelan from Acacia Financial. I think we all agree
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that we're underrated compared to very similar
organizations, based on the strength of our
financials.
Now, I'm not going to speak for anybody but
myself and my conversations with the rating agencies.
What it seems to come down to is the press that we
have gotten over the years. They just don’t have a
lot of faith in our judgment, which is extremely
frustrating to me because irrespective of what
happened in the past, the financials have continue to
improve. I'm going to take a minute here to get on my
soapbox, Jim.
MR. WHITE: Sure.
MR. HANSON: The financials have continued to
improve and we have a long record of success now. We
came from a place in 2008 where we were literally
staring down bond trustees, bond insurers and
investment bankers who wanted to collateralize more
money than we had, or the entire amount of the General
Fund.
We fended that off; that's well behind us now.
We've got a General Fund that's got more than
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$500 million in the bank due to the responsible
actions of the Board and the staff on the financial
side. It’s also due to the way that we maintain the
bridges, the way we maintain the railroad line. If
not for the fact that we keep those bridges in
excellent condition -- we keep them safe, serviceable,
and secure and they are the first places that are free
of snow in every storm -- we wouldn't be talking about
a 2 percent increase in traffic.
It's this entire ensemble at DRPA and PATCO --
from the Board down to the people who work on the
bridges and on the train lines -- who make it work.
Especially the executive team, who work every day to
make sure that wherever we have shortfalls, wherever
we have gaps, wherever we're under-resourced, we find
a way to make it up. We've got a long record of
financial success. Because of some articles in the
press that I think are there to sell newspapers,
because no matter what people have said or done, we've
always done the right thing, but that's what you keep
hearing about.
I don't know, Kim or Kathy, if you want to
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comment on that. It's very frustrating to me.
MS. CLUPPER: I agree with Jim's conclusion
that it would be very helpful to go back to the rating
agencies this year with the trends and new traffic
figures. But, the rating agencies remember the budget
fights and the economic development funds, and that's
what's in their heads. That's really history now. I
think you have to just keep going back and back and
back.
MS. WHELAN: The consistency with
administration, I think, is really going to help. I
agree with Kathy, I think it's time to go back and ask
for a new rating.
MR. WHITE: Right. So our plan would be that
we meet with them in June or so, do a presentation,
and hopefully we can see some more movement there.
CHAIRMAN NASH: I'm so grateful that the
commuter discount didn't cause a calamity.
MR. WHITE: How did I know that was coming?
At the section above, the first section, you'll
actually see what the ratings are to the revenue
bonds. Moody's were A3 stable. S&P were A+. For the
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PDP bonds or Port District Project bonds, they are
Baa3 stable and BBB+ on S&P. On the PDP bonds, S&P
moved us up from BBB- a couple of years ago. So,
that's a very, very positive trend.
TREASURER REESE: Hey, John?
MR. HANSON: Yes?
TREASURER REESE: Is Chairman Ryan Boyer with
us, as well?
MR. HANSON: No.
CHAIRMAN NASH: No, he's not.
TREASURER REESE: No. Maybe we can schedule a
meeting with you, me, and Chairman Boyer. I have
something I want to share with you that may be helpful
in terms of imagining.
MR. HANSON: That's great. I'll ask Nancy to
schedule that.
TREASURER REESE: Okay.
MR. HANSON: Thank you, Treasurer.
MR. WHITE: We have entered a new year and I
want to review what we accomplished during 2015. I
distributed to the Finance Committee a document called
‘Financial Accomplishments and Achievements for 2015.’
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Beyond the traffic and revenue increases, we had a
banner year in terms of the things we were able to
accomplish. I broke it down to a couple of
initiatives. I'm not going to go through the whole
document, but you can certainly look at it at your
leisure.
In terms of E-ZPass initiatives, we did the
commuter discount. We implemented that on
December 1st. The Finance Committee also us gave
authorization to do programming for the E-ZPass to
delay transaction processing. I believe that's
finished; we just need to have some training on it. We
believe that's going to bring in hundreds of thousands
of dollars in additional revenue capture for 2016.
On the debt and the swap side, we extended the
Barclay's loan extension. We did the swap novation.
We got authorization from the Board and executed a
transaction that surprised us by bringing in a
$1 million gross payment from the two new
counterparties, for a net of over $850,000 after fees
were paid. The DRPA, as a result, is in a much more
strategic position vis-à-vis the swaps.
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We talked about Moody's affirming our DRPA
ratings. We are in the process of looking at LOC
restructuring. In fact, that's the next thing we'll
be talking about, the resolution to give us authority
to move forward relating to our LOC portfolio.
On the economic development side, you can see
this section called ‘Economic Development Exit.’
Credit for a lot of the work here goes to our legal
staff; Kristen Mayock, particularly when she was
Acting GC and also Ray towards the end of the year. We
got money from the Victor loans payout. The LEAP loan
payoff happened in December; both principal and
interest was paid down. We were able to discharge the
NJEDA loan guaranty, which was $10 million. We had to
reserve for this in our General Funds, so the
discharge basically frees up $10 million in reserves.
We assisted the Battleship New Jersey; as a result of
our 10-year loan guaranty, we were able to help them
reduce their debt or their debt payments by around 250
basis points. With the help of Commissioner Haider
and particularly Chairman Boyer, we were able to
participate in the CCI Stadium restructuring and
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essentially help to facilitate that deal.
There were a number of things that we are
required to do in terms of the bond indenture
compliance, so those things are mentioned there. On
the insurance side --
TREASURER REESE: Jim?
MR. WHITE: Yes?
TREASURER REESE: Can we slow down just a
second? I think you're now to another category. On
the economic development exit --
MR. WHITE: Yes?
TREASURER REESE: As I recall, on that large
document that was put together on the past economic
development activities, -- some of it sounds like new
economic development, which I thought we were going to
stay out of, and some of this it seems like it goes
back to the old economic development. Is that
correct?
MR. WHITE: Particularly, for example, Victor
Lofts and LEAP, these were old economic loans.
MR. HANSON: Hold on for one second. I just
want to make this really clear. There is no new
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economic development. All of our efforts have been
focused on exiting the program because: number one, we
don't do it anymore; number two, it is a huge drain on
the operation, particularly the Finance and Legal
staffs, including, as Jim mentioned, Ray, Kristen,
Steve Holden, Rick Mosback, Kate Vandy, and a whole
other group there.
So, I just want to be really clear, there is
no new economic development and there hasn't been for
a long time. We're desperately trying to close the
books on economic development.
TREASURER REESE: Okay, great. Thank you.
Thank you, John. So this really goes back to the
denominator, if you will. That number, was it around
$300 million in economic monetary value out there?
MR. HANSON: Higher than that.
MR. WHITE: It was higher than $300 million.
When you pull together the PDP bonds and other
funding, it was --
MR. HANSON: Swap funding and then --
MR. WHITE: Swap funding, that's correct, it
was around $40 million in swap funding. It was, I
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would say, upwards of $400 million.
MR. HANSON: I think it was in the
$400 million range.
TREASURER REESE: As we work this thing down,
what percentage of this does this represent towards
the work-down of this $400 million?
MR. WHITE: I don't have the economic
development numbers in front of me, but I believe it
is less than $20 million, in terms of those projects
we are working on. In terms of the loans, I think we
may have still around $14 million or so in loans. BI
will clarify those numbers and get them to you.
TREASURER REESE: Okay, thank you.
MR. WHITE: Essentially, Victor Lofts and LEAP
did some restructuring of old leans and, as a result,
they paid down the economic development loans that
we've been carrying since around the early 2000s. Is
that clear? Treasurer Reese?
TREASURER REESE: Yes, I'm here. I think my
question was answered on the bigger thing, and it will
be answered when we get that other stuff.
MR. WHITE: Okay.
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COMMISSIONER HAIDER: Do we have an
expectation of what we'll recapture in 2016 from the
economic development funds?
MR. WHITE: Well, certainly, there will
continue to be loan pay downs in terms of principal
and interest. We made some payments against the
existing economic development projects late in the
year. I think some of those are winding down, but I
don't necessarily know where we stand in terms of the
projects overall.
CHAIRMAN NASH: Several months ago, we were
getting continuing paperwork that would tell us the
status of each of the economic development projects.
We should continue that. I don't know who was taking
on that responsibility.
MS. WING: I'm working to get that updated.
I'm primarily waiting for some additional data. There
were some extension requests that Legal is still
processing. So it's really just about getting my arms
around the files. It's unfortunately the process.
CHAIRMAN NASH: Rather comprehensive. When
you're ready to do that, bring it before the Finance
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Committee --
MS. WING: Yes.
CHAIRMAN NASH: -- we can go through each of
the projects and see where we are as we try to unwind
this as best we can.
MR. WHITE: Right. And, Maria, to the extent
that you need our help, obviously, reach out to us.
On the insurance side, led by CAO Toni Brown
and the Risk area, we had our annual renewals. One of
the key items was the AmeriHealth renewal which
resulted in an increase of only 1 percent on the
annual premiums. That really was significant. It
really helped us in terms of finalizing the budget.
Toni, anything you want to mention related to
that?
MS. BROWN: The only thing I want to add is
that we were also able to negotiate an increase in the
Wellness budget for an additional $5,000; so, we've
gone from $15,000 to $20,000. Those funds are
critical because they help to cover the cost of the
health fairs, the flu shots, and a lot of other
initiatives that we have underway that support our
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goal for a healthy and well workforce.
MR. WHITE: I’ll ask John Rink to talk
about the PATCO Freedom Cards. Our customers wanted
to use the credit/debit feature in our TVMs for paper
tickets. PATCO rolled that out in June 2015. John, do
you want to say anything about the success of that
program?
MR. RINK: We've seen a dramatic increase in
the use of credit and debit cards to purchase the both
single ride tickets and the roundtrip tickets. It's
been well received by our customers, especially those
that don't have a FREEDOM Card and want to go into the
City for an event. It's been a tremendous success for
us.
MR. WHITE: Great. Finally, other finance
initiatives. Obviously, we passed the budget. We had
to work against some challenging numbers, but we were
able to pass the Operating, PATCO and Capital Budgets.
I mentioned earlier the funding of the OPEB
Irrevocable Trust, $5 million this year and an
anticipated $5 million for next year, depending upon
the success of our numbers. The General Fund has
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grown. The pay-go Capital Fund grew roughly close to
$50 million.
We have continued below budget performance for
a significant time frame. My group, in cooperation
with Corporate Communications and the Print Shop,
received the Certificate of Achievement for Excellence
in Financial Reporting for the 23rd consecutive year.
And all staff has been actively involved in the SAP
implementation that began last Monday, January the
4th.
So, that's just a brief summary of the results
of the effective participation and partnership between
DRPA staff and the Finance Committee and, of course,
the Board. I want to thank you all for your support
in pushing for that agenda this year and last year.
CHAIRMAN NASH: Well, Jim, I think we should
thank you and your team for doing such an outstanding
job. The finances of this Authority are just
spectacular. And I do want to thank you. I know your
dedication. And just to see your eyes light up when
you see money coming into the General Fund -- every
person who crosses the bridge and pays $4 or $5 to get
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over the bridge should know how much care and
attention you take with their money. That's what the
public is looking for, someone to be careful and
prudent with their hard-earned money. I'm sure they
appreciate what you and your team have done.
MR. WHITE: I appreciate those comments. I
should also add, and John did mention this, that we
have our financial advisors with us today. Certainly
over the last three or four years, we have saved tens
of millions of dollars as a result of their advice. I
am indebted to the counsel that they bring to the
table, as well.
CHAIRMAN NASH: You're going to make them ask
for more money. Be careful when you say they saved us
tens of millions of dollars.
MR. WHITE: Just trying to spread the joy.
MS. WHELAN: I'm shedding a tear, too.
CHAIRMAN NASH: Well, of course, when I say
your team, I'm including our financial advisors who
have been with us for several years and have taken us
through the rocky times and some of the tidal waves
that we've overcome. So, to Kathy and Kim and your
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teams, thank you very much.
All right, any bad news?
MR. WHITE: We're overworked, but that doesn't
show up in the numbers.
CHAIRMAN NASH: The second item is the
‘Authorization for Extension of Stated Expiration
Dates of Letters of Credit 2008A, 2010B, 2010C Revenue
Refunding Bonds and Dissemination of RFPs for the
Alternate or Replacement Liquidity Structures’ for the
same list. Jim?
MR. WHITE: I sent a memo to Finance Committee
Commissioners because this is a very complex SS&R, but
there are some key things here that we're looking to
do. I'll ask either Kathy or Kim to make any comments
that they want.
Essentially, this has been our goal over the
last couple of years. We have a significant portfolio
of Letters of Credit that support our 2008 and 2010
Revenue Refunding Bonds; somewhere in the area
approaching $600 million. It has been John Hanson and
my goal to do as much as we can to diversify that
portfolio, perhaps have alternative structures, in
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order to diversify and reduce potential risk.
This year, we have three large LOCs that are
expiring. Those are the Bank of America, which
expires in July and Royal Bank of Canada and the Bank
of New York Mellon, both of which expire in March of
this year. Having these three expiring LOCs, gives us
an opportunity to either renew or to seek additional
or alternative structures.
MR. HANSON: Jim, if I could just for one
second?
MR. WHITE: Yes.
MR. HANSON: This deals with our variable rate
debt, which is connected to the swaps. As Jim said,
we have about $450 million in notional value of swaps
left, which means it's in hedging transactions with
$450 million of variable rate debt. That variable
rate debt is currently supported by Letters of Credit
from banks. But all of it is hedged that way through
variable rates with Letters of Credit, and we're
looking at possibly renewing some or all of that with
alternative products.
MR. WHITE: We essentially have three expiring
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LOCs that we have to do something with. This SS&R
provides the Authority with maximum flexibility and
authority to address the issue of the expiration of
the three expiring LOCs with those three banks. The
SS&R provides authority for the DRPA to issue an RFP
to banks and investment banks to provide us with LOC
structure and pricing, or the opportunity to propose
alternative financing structures related to the
Authority's Letters of Credit.
CHAIRMAN NASH: Proposed to whom? To us; to
the Board? You say it gives you the authority to
propose alternative structures.
MR. HANSON: To receive proposals.
MR. WHITE: To receive proposals. They would
propose to us, and then we would, of course, come to
the Finance Committee and the Board for final
approval.
MR. HANSON: One of the problems is that there
are changes in the regulations potentially coming that
would make LOCs more expensive. Our thought is that
we should not have all of our eggs in the LOC basket
in case it gets really expensive. So, we’re looking to
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diversify.
CHAIRMAN NASH: I'll defer to you on that
judgment. But do you need --
MR. WHITE: We need authority to extend the
maturities of our LOCs, particular with Royal Bank of
Canada and the Bank of New York. We have approached
the banks: The Royal Bank of Canada is willing to
extend the LOC which matures in March for five months
and the Bank of New York is willing to extend it for
three months. That will give us sufficient time to go
out and solicit information to either restructure or
renew the LOC portfolio. The Bank of America has
given us a proposal whereby we could extend for two to
four years.
MS. WHELAN: The goal would have been for all
three to agree to two to four years, but that would
have made it more straightforward. You would have to
do a whole new RFP. But it looks like two of the
banks are only willing to go out either three months
or five months. That's why we're asking for the
ability to submit a new RFP or seek alternative
structures.
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TREASURER REESE: That makes sense. I'm
following that.
COMMISSIONER HAIDER: I'd like to understand
what the alternative structures are that we're
discussing. I presume that you've had some banks
pitching some alternatives for a current --
MR. WHITE: Yes, that's correct.
MS. CLUPPER: They're likely going to be bank
loans. There are public alternative structures that
probably will not be all that viable. But we are
seeing bank loan structures that have a maturity much
longer than two or three years. Sometimes you can get
them out seven to ten years. They would look exactly
like the variable rate, but have the same tenders --
swaps, so it might be the same banks that would issue
the Letters of Credit.
MS. WHELAN: But some of the banks are just
getting out of the Letter of Credit market, right?
MS. CLUPPER: A Letter of Credit is a public
offering, so you have to tender the bonds back in,
issue a new official statement. It's like a little
mini-bond issue, so it is a public offering. If you
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do a private bank loan you don't have to get another
rating, you don't have to do another – you just enter
into another bank agreement with a bank --
MS. WHELAN: It's probably going to come down
to what's the most costly structure.
MR. WHITE: Right. So, again, the SS&R
essentially gives us maximum flexibility to, number
one, extend the LOC maturities-- particularly Royal
Bank and Bank of New York, and potentially with the
Bank of America. In the meantime, we can go out and
solicit additional proposals to look to potentially
restructure the LOC portfolio given some of the
changes going on in the market.
MR. HANSON: Jim, I would suggest as we're
going through this process that -- if Commissioner
Haider and Treasurer Reese are willing -- you should
communicate with them about ideas we're considering,
because they both have considerable knowledge in this
area.
MR. WHITE: Yes, that would be great, sure.
MR. HANSON: Treasurer, would that be all
right?
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TREASURER REESE: That's great.
MR. WHITE: We can use all the help we can
get, so I appreciate that. Any other questions?
CHAIRMAN NASH: There's been a resolution
proposed. Do you want it to go forward at this
meeting?
MR. WHITE: Yes.
CHAIRMAN NASH: There has been a motion. Is
there a motion to adopt?
COMMISSIONER HAIDER: So moved.
CHAIRMAN NASH: Is there a second?
COMMISSIONER HEPKINS: Second.
CHAIRMAN NASH: All those in favor?
ALL: Aye.
CHAIRMAN NASH: So that will be on the agenda
for the Board meeting on 20th.
The third item is the Modification of Current
Temporary Workers Contracts. Toni?
MS. BROWN: Yes. Let me say that what we are
proposing is an interim solution to get us to June
2016, but I would like to provide some background for
you.
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We currently have contracts with three
staffing firms to provide us with temporary services.
Those firms are Accountants For You and Office Staff
For You, Accounting Principles, and Perry Resources.
These three contracts are set to expire in June 2016.
We use these firms to help us meet temporary
staffing needs of both DRPA and PATCO. For instance,
the Transit Ambassadors provide a welcoming presence
at our PATCO stations; the contract that covered their
services in the past expired in 2014. When that
contract was not renewed, a decision was made to cover
these services using existing, temporary staffing
services firms.
The Transit Ambassadors were recently used
during the PATCO Track Rehabilitation Project and the
Papal visit. They were also called upon recently to
conduct PATCO customer surveys in response to FTA
requirements that we have related to our Title 6
program.
In addition to this expanded use of the
Transit Ambassadors, we are also using temporary staff
to assist staff at DRPA and PATCO and to fill certain
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voids, especially as it relates to ERP training, while
staff is busy with ERP training and implementation.
We expect to need some temporary staffing services at
least for the next three months related to the ERP
transition.
Currently, the balance on the contract is
about $452,000. We are spending at the rate of about
$66,000 between the transit ambassadors and other
temporary staffing services needs.
We are requesting an additional $150,000 to
ensure that there will be adequate funding to meet
temporary staffing needs going forward until June
2016. That would get us to about -- if we continue to
spend at about the $66,000 a month rate, we would get
to about $400,000, and we want to make sure that we
don't find ourselves running short.
As I said at the beginning, this is an interim
solution. PATCO management recently posted an RFP for
Transit Ambassadors and a recommendation for a
contract is scheduled to be presented to this
Committee in March of 2016. DRPA management has also
recently posted a temporary staffing RFP and we expect
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to come to this Committee in April with a
recommendation.
So, we're confident we'll get to June if we
can get a slight modification of the not-to-exceed
amount in the amount of $150,000.
MR. HANSON: So this is no budgetary increase.
MS. BROWN: Right.
MR. HANSON: This reflects that we've leaned
more heavily on these contracts because, in some
cases, we haven't filled positions because people were
tied up at the DRPA, were tied up with the Papal
visit, etc. So it has been important to have the
Transit Ambassadors out there for the reasons that
Toni said in the area of finance, in the area of
purchasing. We can bring workers in on a temporary
contract to get the work done, to get POs enter,
analyses done. Work is being done while people are
being trained, but it is not going to increase the
budget. Also, we're not filling some positions right
now because the ERP is going to change the way we work
and people don't want to bring somebody into a
position that isn't going to continue to exist. So,
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we have relied more heavily on the contract, and we're
making the money up with positions that we're not
filling.
COMMISSIONER HAIDER: So effectively, this is
budget neutral if we look at and see the shifting.
MR. HANSON: Yes, it's budget neutral. We've
relied more on temporary staffing rather than filling
positions in large measure because of the changes that
we're anticipating will occur once we wrap our minds
around what the full impact of the ERP system
implementation will mean to us.
CHAIRMAN NASH: Are there any other questions?
COMMISSIONER HAIDER: I would just ask that
when we go back and look at the full cost of ERP
implementation at the end of the process and have a
moment of reflection on the whole project, -- I know
it has been a Herculean effort -- that we are
including this cost in that.
MR. HANSON: Yeah, that's great.
CHAIRMAN NASH: Any other questions? Seeing
none, there is a resolution on the table.
COMMISSIONER HAIDER: Move the motion.
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CHAIRMAN NASH: It has been moved. Is there a
second?
COMMISSIONER HEPKINS: Second.
CHAIRMAN NASH: All those in favor?
ALL: Aye.
CHAIRMAN NASH: Opposed? All right.
MS. BROWN: Thank you.
CHAIRMAN NASH: The last item is the Records
Management Consultant Services. That's to our
counsel?
MR. SANTARELLI: Thank you, Mr. Chairman.
We're asking that the Board of Commissioners authorize
staff to negotiate the terms of the contract with Iron
Mountain Consulting for records management consulting
services.
The request for proposal was prepared to
determine current market costs for such services. We
had a pre-proposal meeting on September 21st. Four
companies submitted: Concord, Imerge, Iron Mountain,
and Steven M. Lewis, Inc. There is a memorandum that
was circulated to the Committee that sets forth the
criteria that we used to evaluate them and the
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scoring.
Those firms responded to the request for
proposal and were reviewed under the criteria of:
experience with records retention; schedule creation;
policy and procedure manual creation; geographic area,
that is, their business location; their fees; the
timeline; and, staffing that they would provide.
CHAIRMAN NASH: Were they low bid?
MR. SANTARELLI: I'm sorry?
CHAIRMAN NASH: Were they low bid?
MR. SANTARELLI: They were also low bid.
CHAIRMAN NASH: And highest recommended?
MR. SANTARELLI: And highest recommended.
CHAIRMAN NASH: Is there a motion?
COMMISSIONER HAIDER: So moved.
COMMISSIONER HEPKINS: Second.
CHAIRMAN NASH: All those in favor?
ALL: Aye.
CHAIRMAN NASH: Opposed? Okay.
CHAIRMAN NASH: There is a --
MR. SANTARELLI: We're going to discuss that
in Executive Session, Mr. Chairman, and then
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potentially bring it to the floor for a vote if the
Committee so decides.
CHAIRMAN NASH: Discussion of the procurement
process is in Executive Session?
MR. SANTARELLI: Yes.
CHAIRMAN NASH: How come?
MR. SANTARELLI: It involved legal counsel.
And in case anyone has questions, we have Mr. Mosback
here.
CHAIRMAN NASH: Well, then I'll take a motion
to go into closed session.
COMMISSIONER HEPKINS: So moved.
COMMISSIONER HAIDER: Second.
CHAIRMAN NASH: All those in favor?
ALL: Aye.
CHAIRMAN NASH: Opposed? All right, we're in
Executive Session.
(Off the record at 9:58 a.m.)
(On the record at 10:59 a.m.)
CHAIRMAN NASH: We're back in open session.
We have one item that is going to advance from the
Finance Committee to the Board meeting, and that is
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the change in compensation on one particular piece of
litigation. Do you want to identify that litigation?
MR. SANTARELLI: Yes, it's the LTK versus
Delaware River Port Authority litigation, pending in
the Court of Common Pleas, Montgomery County,
Pennsylvania. The law firm of Duane Morris is our
counsel on the matter.
CHAIRMAN NASH: And the purpose is that it is
complex litigation.
MR. SANTARELLI: Yes. It's a complex
litigation on a major capital project.
CHAIRMAN NASH: And according to Jim White, it
looks as though we'd be able to pay for the legal fees
through our capital expenditures.
MR. SANTARELLI: Yes, that is our
understanding.
CHAIRMAN NASH: To our Operating Budget.
MR. SANTARELLI: That is our understanding.
CHAIRMAN NASH: With that, is there a motion
to accept that?
COMMISSIONER HAIDER: So moved.
CHAIRMAN NASH: Is there a second, please?
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COMMISSIONER HEPKINS: Second.
CHAIRMAN NASH: All those in favor?
ALL: Aye.
CHAIRMAN NASH: Opposed? The ayes have it,
and that will go on the January Board agenda. Is
there any other business that we need to address?
Seeing none, I'll take a motion to adjourn.
COMMISSIONER HEPKINS: So moved.
CHAIRMAN NASH: I'll second that. All in
favor?
ALL: Aye.
CHAIRMAN NASH: Any opposed? We're adjourned.
Thanks.
(Whereupon, the Finance Committee Meeting was
adjourned at 11:00 a.m.)
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C E R T I F I C A T E
This is to certify that the attached
proceedings before the Delaware River Port Authority
Finance Committee on January 13, 2016, were held as
herein appears, and that this is the original
transcript thereof for the file of the Authority.
_________________________Tom Bowman, Reporter
FREE STATE REPORTING, INC.
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DELAWARE RIVER PORT AUTHORITY
Finance Committee Meeting
One Port Center2 Riverside DriveCamden, New Jersey
Wednesday, February 10, 2016
Commissioners:
Jeffrey Nash, Esq., Finance Committee ChairmanRyan Boyer, Chairman of the DRPA/PATCO BoardsTimothy A. Reese, Pennsylvania State Treasurer
(via telephone until 10 a.m.)Elinor Haider (via telephone until 9:50 a.m.)E. Frank DiAntonioCharles FentressRicardo TaylorJohn Dougherty (for Pennsylvania Auditor General
Eugene DePasquale)
Others Present:
Victoria Madden, Chief Counsel, Pennsylvania AuditorGeneral Eugene DePasquale via telephone)
Christopher Howard, Chief Counsel, New JerseyGovernor's Authorities Unit
Chelsea Rosebud Guzowski, Director of Economic andStrategic Initiatives, Pennsylvania Office of theBudget
David Dix, Assistant to DRPA/PATCO Chairman Ryan BoyerArnold Alston, Vice President, Wells Fargo
DRPA/PATCO Staff:
John Hanson, Chief Executive OfficerMaria Wing, Deputy Chief Executive Officer (via
telephone)Raymond Santarelli, General Counsel & Corporate
SecretaryKristen Mayock, Deputy General Counsel
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DRPA/PATCO Staff: (continued)
Stephen Holden, Deputy General CounselKathleen Vandy, Assistant General CounselRichard Mosback, Assistant General CounselJames White, Chief Financial OfficerToni Brown, Chief Administrative OfficerDavid Gentile, Inspector GeneralChristina Maroney, Director, Strategic InitiativesKyle Anderson, Director, Corporate CommunicationsJohn Rink, General Manager, PATCOAmy Ash, Acting Manager, Contract AdministrationSheila Milner, Administrative CoordinatorElizabeth McGee, Acting Records Manager
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I N D E X
Page
Roll Call 4
Financial Update 5
Executive Session 18
Selection of Qualified Counsel to Provide LegalServices to DRPA and PATCO 18
Adjournment 20
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P R O C E E D I N G S
(9:10 a.m.)
CHAIRMAN NASH: I'd like to call this meeting
to order and ask the Corporate Secretary to please
call the roll.
MR. SANTARELLI: Good morning.
CHAIRMAN NASH: Good morning.
MR. SANTARELLI: Chairman Nash?
CHAIRMAN NASH: Here.
MR. SANTARELLI: Treasurer Reese?
TREASURER REESE: Present.
MR. SANTARELLI: Commissioner DiAntonio?
COMMISSIONER DiANTONIO: Here.
MR. SANTARELLI: Commissioner Haider?
COMMISSIONER HAIDER: Present until 9:50.
MR. SANTARELLI: Okay. Commissioner Taylor?
COMMISSIONER TAYLOR: Here.
MR. SANTARELLI: Commissioner Dougherty is
here.
COMMISSIONER FENTRESS: Yes, he's here.
MR. SANTARELLI: Board Chairman Boyer is also
present.
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COMMISSIONER FENTRESS: Yes, he just went in
the other room.
MR. SANTARELLI: Commissioner Fentress?
COMMISSIONER FENTRESS: Here.
MR. SANTARELLI: You have a quorum.
CHAIRMAN NASH: Very good. We're going to
start with the abbreviated form of the Financial
Update.
CHAIRMAN NASH: Mr. White, do you want to give
us an overview quickly?
MR. WHITE: Yes, I certainly will. We're
still reporting 2015 numbers. But, all- in-all,
traffic and revenues are still much above what we had
originally budgeted.
I want to make sure everybody has a copy of
the stat sheet. It should be in your agenda. If you
look, for example, at DRPA information through
November 30th, traffic in November was up $1.1 million
versus last year’s toll revenues. In total, November
year-to-date for 2015 was $8.5 million above November
year-to-date for 2014. So, again, we've been talking
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about how we have really outperformed 2014.
A lot of that is due to the fact that even
though there was some snow impact last year, it was
not significant. As we have discussed before, we
typically decrement three snow days, which is around
$2.5 million against in terms of the budget. So we're
getting around two million right there off-the-bat.
But, certainly, the major factor is that our traffic
is up two percent over last year, year-to-year.
Again, when we look back to a traffic study
that was done in late 2013, we were expecting growth
during this year of only 0.4 percent. So that
explains a lot of the differential in terms of the
year-to-year number. It also --
TREASURER REESE: Before you move on, can I
get a clarification, please?
MR. WHITE: Sure.
TREASURER REESE: So the DRPA toll revenue,
the $8.5 million year-over-year change, you said
that's $8.5 million in total?
MR. WHITE: That's correct, year-to-date,
that's correct.
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TREASURER REESE: First of all, that's
amazing. Would that really represent 3.14 percent,
though?
MR. WHITE: Unless I did something wrong in
the math, yes, I believe 3.14, one above 2014.
CHAIRMAN NASH: Right. It's $8.6 million over
the 272, the 3.14.
MR. WHITE: Treasurer?
TREASURER REESE: Yes, okay.
MR. WHITE: Are you good?
TREASURER REESE: I'm good, go ahead.
MR. WHITE: Okay, very good. So, again, I
wish I could take credit for these numbers, but
certainly I can't.
CHAIRMAN NASH: Might as well.
MR. HANSON: It's really the weather.
MR. WHITE: It's really the weather, right.
And lower gas prices.
CHAIRMAN NASH: Not really, not really,
because you incorporated three or four snow days, but
we lost two or three days of the weekend during the
Pope’s visit, so it kind of equals out. So, you can
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take credit for it.
COMMISSIONER TAYLOR: The weather or the Pope?
MR. WHITE: I will not object to that
statement. Okay, so on the PATCO ridership, again, we
started to see improvement toward the end of the year,
particularly as the bridge project was winding down.
So you see a year-to-year change of 162,000 riders.
Net passenger revenue was up almost 650,000 year-to-
date; this is through December 31. And so, again,
really, really great numbers on the PATCO side.
CHAIRMAN NASH: Especially considering that
you had to deal with that track rehab project.
MR. WHITE: Right.
CHAIRMAN NASH: Those numbers are spectacular.
MR. WHITE: Yes, they really are. Just for a
point of reference, if you pop down a couple of rows
and look at the PATCO ridership year-to-date against
budget, it's only around 31,000 below budget. But,
again, if you take into consideration that there was
some snow and I think around 27,000, if I remember
correctly, was related to bad weather in June or July.
MR. RINK: It was the storm in June where we
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were shut down and we lost power.
MR. WHITE: So really, unexpectedly, we
basically were pretty flat against the budget, which
is really amazing. The numbers are really excellent.
If you look at the operating expenses area,
you'll see that we are still 5.3 percent under budget.
However, we still have a number of 2015 numbers that
need to be accrued, so I expect that 5.3 percent total
under budget for DRPA and PATCO to be ultimately in
the two to three percent range. But, again,
historically, it might be 14 years in a row that we
have been under budget at least by, I would say, two
percent, two to four percent. So, again, some of that
is because of delays in procuring, but a lot of that
is just the Authority’s overall management of its
expenses.
TREASURER REESE: Right. Now, also, I have a
question again, Jim. Were there any fare increases
for PATCO in 2015?
MR. WHITE: No, no fare increases for PATCO.
The last PATCO fare increase, I think, was in 2011.
Is that correct?
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MR. RINK: Yes.
MR. WHITE: When we increased tolls in 2011,
we also increased PATCO fares by 10 percent.
TREASURER REESE: Okay.
MR. WHITE: And that was the last fare
increase.
TREASURER REESE: Okay, so no increase is on
these numbers. These are all driven by increased
ridership in total.
MR. WHITE: Exactly right. No fare or toll
increases during 2015.
BOARD CHAIRMAN BOYER: In fact, we had a toll
reduction.
MR. WHITE: Yes, to the Chairman's point, we
do have the commuter --
MR. HANSON: Frequent bridge user discount.
MR. WHITE: Yes, discount. But we won't
really see the impact of those numbers, I think, until
next year. Last time I looked at the sign-up numbers,
we were only around 60 percent. And in December, of
course, a lot of people are taking days off so they
don't qualify for the discount or the credit because
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of not having 18 trips. But to the Chairman's point,
we will see more impact certainly as we get into 2016.
Again, on the budget, we're in excellent
shape. The only other thing that I really wanted to
call to your attention is that on January the 1st, we
have principal and interest payments on our fixed and
variable rate debt. So those numbers that are showing
as of January 31, $1.487 billion in debt, reflect a
pay-down of roughly $50 million in principal on
January the 1st.
TREASURER REESE: Okay.
MR. WHITE: Treasurer, do you want to say
something?
TREASURER REESE: No. I'm just following
along. I recognize the significance. You pay down
50 --
MR. WHITE: $50 million.
TREASURER REESE: $50 million of that, okay.
MR. WHITE: Right. If you pop all the way
down to the bottom of the page, you will see that the
current notional amount for the active swaps has also
dropped down. This is because on the 2008 and 2010
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revenue refunding bonds -- which are supported by the
swaps -- amortize as well. So that number has
decreased as well, as of January the 1st. Actually,
it says total swap valuation of 12/31. That actually
should say January 31, 2016.
The only other thing I wanted to emphasize to
the Finance Committee is to thank you for passing the
resolution in January that gave us the ability to
extend our LOCs with Bank of America, Royal Bank, and
the Bank of New York Mellon. Essentially, the
extensions with Royal Bank and the Bank of New York
Mellon are like extensions of three to five months.
Royal Bank is August the 1st, and July the 1st is the
Bank of New York Mellon. So we are expediting. We're
starting to work on the agreements because we want to
be able to sign them. The agreements essentially are
saying we're just extending the terms --
TREASURER REESE: Right.
MR. WHITE: -- for a couple of months after
the Governor's veto period, because these LOCs mature
in March and we want to make sure that everything is
in place before that expiration date.
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With the Bank of America we have a little bit
more time. We are looking at between a two- and four-
year term. Preliminarily, based on my conversations
with the FAAs and with bond counsel, it looks like we
should be able to save around $100,000 a year at the
present principal amount. But I want to do a little
bit more due diligence on Bank of America to make sure
we have the best deal and we have the best flexibility
in that agreement. So we have a little bit of time.
So, we are rushing forward in terms of the
Royal Bank of Canada and the Bank of New York Mellon
extensions, and Bank of America will then follow suit.
But, again, we have a little bit of flexibility there.
And then, after we get those extensions out of the
way, then we'll issue an RFP.
Again, the reason for the extensions is to
give us an opportunity --
TREASURER REESE: Time.
MR. WHITE: Time, exactly right, time to do an
RFP, to see if we're going to continue with our LOC
structure, or if there are some alternative financing
opportunities where we can -- as John and I have
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talked about for years -- diversify the LOC portfolio
perhaps into something more bank bond placements or
some other alternative.
CHAIRMAN NASH: What do you mean by that?
What alternative? Can you describe that?
MR. WHITE: I'm not really as astute related
to that, but there are various vehicles called FRNs
that would allow us to essentially do a private deal
with the bank rather than doing an LOC. The interest
rate structure is different from your typical LOC. So
we are going to get proposals that will get pricing on
the LOC. But we will also look at other investment
banks or banks that have an alternative structure to
see if, in fact, we can do a better deal. Because in
some of these vehicles, like the FRNs, you can go out
more than just the typical two to three years that you
can in the LOCs.
TREASURER REESE: Chairman Nash and Jim, I was
wondering if, like this year, wouldn't you think it
would be, because there are two parts to our finance
meetings: one, its operational where we read the
numbers; the numbers look great, by the way.
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MR. WHITE: Right.
TREASURER REESE: Outstanding work, in my very
short period of time. But, in the second part of the
meetings we should also have someone maybe look at the
-- I'm going to call it investments, although there is
really no investment. There is really more debt here.
MR. WHITE: Right.
TREASURER REESE: Maybe looking at an economic
outlook. Something that –lets me understand how you
guys are planning and what are some of the resources
that you have, consultants, otherwise, that come in
and provide you with insight. Something so we can all
sit at the same table at the same time.
CHAIRMAN NASH: That's a great idea,
Treasurer. In fact, we should talk about that at the
meeting or we can talk about it in Harrisburg, if you
want. The other thing I would like your involvement
with is our management portfolio, which has not been
updated --
MR. WHITE: In a long time.
CHAIRMAN NASH: -- in 20 years.
MR. WHITE: Right.
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TREASURER REESE: Right.
CHAIRMAN NASH: That's something that
desperately should be looked at. I know our
parameters are very narrow, but it doesn't mean that
we should not look to see where our investments
currently lie and where we can make improvements. At
the very least, we should do an RFP to see what other
investors have in mind under the strict parameters
that we would be employing them.
MR. WHITE: Right.
CHAIRMAN NASH: That would be a great part of
this Committee that I don't personally have the
expertise to be directly involved in, but I think you
should, Treasurer.
TREASURER REESE: That would be great.
MR. WHITE: Right. And we've had some
discussion on that. Certainly, that is on the table
in terms of our finance agenda. The first thing we
wanted to do is get the debt piece out of the way, but
the investment piece is certainly high on my area of
priority.
CHAIRMAN NASH: We've been talking about it
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for 10 years.
MR. WHITE: Yes, we have.
CHAIRMAN NASH: I think it's time that we
should -- if you're here long enough, you know how
long things have been waiting.
TREASURER REESE: I'm here from January 13th.
CHAIRMAN NASH: But I appreciate your
participation in that, Treasurer Reese. All right,
are you done with your abbreviated report?
MR. WHITE: Was that a softball that you just
tossed me? Yes.
CHAIRMAN NASH: All right, are there any other
issues for Open Session, because we're going to go
into Closed Session unless there is something we
should discuss in Open Session. There may be some
resolutions when we re-open that have to be placed on
the public agenda. So, with that, I'll take a motion
to go into closed session.
COMMISSIONER FENTRESS: Move the motion.
COMMISSIONER TAYLOR: Second.
CHAIRMAN NASH: All in favor?
ALL: Aye.
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CHAIRMAN NASH: Opposed? All right.
(Off the record at 9:26 a.m.)
(On the record at 10:39 a.m.)
CHAIRMAN NASH: All right, we have one
resolution concerning selection of Qualified Counsel
to Provide Legal Services to the DRPA. Mr.
Santarelli?
MR. SANTARELLI: Thank you, Mr. Chairman. We
are asking the Committee to approve and move to the
Board the Summary Statement and Resolution relating to
the Selection of Qualified Counsel to Provide Legal
Services to the DRPA and PATCO. A draft copy of the
resolution provided was previously provided to the
Committee. We will be revising the draft to reflect
the rates as currently paid to counsel under the
existing resolutions.
CHAIRMAN NASH: Thank you. Is there a motion
to adopt the resolution as so revised?
COMMISSIONER TAYLOR: So moved.
COMMISSIONER DiANTONIO: Second.
CHAIRMAN NASH: All in favor?
ALL: Aye.
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CHAIRMAN NASH: Opposed? Motion carries.
And I believe that is it. Any other issues
for the Finance Committee?
COMMISSIONER DOUGHTERTY: Again, I just want
to go on record saying that there is -- and I know
that you've been working around the clock. You were
in Trenton last week. I just, you know, as
conversation --
BOARD CHAIRMAN BOYER: We were in Trenton,
yesterday.
COMMISSIONER DOUGHTERTY: Yesterday. As we
continue to move forward, I just want to place an
urgency on labor contract. We approved a new legal
team, we need them, but we re-evaluate the fees.
We're talking about new construction in the region.
We're hoping that we're centered in a boom center for
years to come. I just want to make sure the people
who work inside the facility, especially the ones that
are contractually obligated to get raises, get their
raises.
CHAIRMAN NASH: I think you have unanimous
support for that. What time does the plane land from
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Manchester?
(Laughter)
COMMISSIONER FENTRESS: They should be landing
momentarily.
CHAIRMAN NASH: Motion to adjourn?
COMMISSIONER TAYLOR: So moved.
COMMISSIONER DiANTONIO: Second.
CHAIRMAN NASH: All in favor?
ALL: Aye.
CHAIRMAN NASH: Okay.
(Whereupon, the Finance Committee Meeting was
adjourned at 10:41 a.m.)
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C E R T I F I C A T E
This is to certify that the attached
proceedings before the Delaware River Port Authority
Finance Committee on February 10, 2016, were held as
herein appears, and that this is the original
transcript thereof for the file of the Authority.
_________________________Tom Bowman, ReporterFREE STATE REPORTING, INC.
SUMMARY STATEMENT
ITEM NO.: DRPA-16-028 SUBJECT: Selection of QualifiedCounsel to Provide Legal Services toDRPA and PATCO
COMMITTEE: Finance
COMMITTEE MEETING DATE: February 10, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board of Commissioners of the Delaware River Port Authorityadopt a resolution implementing uniform processes and procedures toprovide legal services to DRPA and PATCO.
PURPOSE: To update the DRPA and PATCO list of qualified law firms to be used by theDRPA.
BACKGROUND: In 2015, seeking to update its list of qualified law firms, the DRPA issued aRequest for Qualifications asking that law firms submit their statements ofqualifications to DRPA. The law firms shown on the attached list arerecommended for inclusion on a list of qualified counsel. Inclusion on this listdoes not guarantee that a particular firm will be assigned legal work; thatdecision will depend on the legal needs of the DRPA and decisions made byDRPA General Counsel. In addition, prior to assigning work to any firm onthe list, DRPA staff will assure that the firm has submitted all requiredcertifications. Compensation for legal work will be at rates set forth herein,or determined on a case-by-case basis by the Board.
SUMMARY: Amount: N/ASource of Funds: N/ACapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 3 yearsGC/IG Review: OKOther Parties Involved: N/A
DRPA-16-028Finance Committee: February 10, 2016
Board Date: February 17, 2016Selection of Qualified Counsel to
Provide Legal Services toDRPA and PATCO
RESOLUTION
RESOLVED: That the Board of Commissioners of the Delaware River PortAuthority hereby approve the attached list of law firms to beconsidered qualified to provide legal services to DRPA and PATCOover the forthcoming three (3) year period; and be it further
RESOLVED: That assignment of work will depend on actual legal needs and will bemade by the General Counsel following appropriate consultation; andbe it further
RESOLVED: That compensation of legal counsel will be at rates established by theDRPA Board of Commissioners; and be it further
RESOLVED: That certain law firms listed on the attached may serve as counselwithin particular specified areas of practice and are hereby approvedto provide legal services to the DRPA and PATCO in those areas overthe next three (3) years. Counsel on any issuance of DRPA debt,selected by the General Counsel, after consultation with the ChiefFinancial Officer, will be paid a negotiated fee from the proceeds of thedebt issue for which they are engaged. Counsel who provides servicesin the area of bond, finance and tax outside of a specific debt issuancewill be compensated at the then applicable hourly rate as determinedby the Board of Commissioners.
SUMMARY: Amount: N/ASource of Funds: N/ACapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 3 yearsGC/IG Review: OKOther Parties Involved: N/A
Legal Services RFQ Approved FirmsAll firms must comply with DRPA Political Contribution Certification Requirement prior to being awarded any legal work.
Firm Contact Person Mailing Address
Ahmad Zaffarese Wadud Ahmad One South Broad St., Suite 1810Philadelphia, PA 19107
Archer & Greiner Christopher R. Gibson P.O. Box 3000Haddonfield, NJ 0803-0968
Ballard Spahr Kevin R. Cunningham 1735 Market Street, 51st Fl.Philadelphia, PA 19103
Bennett Bricklin Saltzburg Kevin M. Blake 1601 Market Street, 16th Fl.Philadelphia, PA 19103
Brown & Connery William M. Tambussi P.O. Box 539Westmont, NJ 08108
Burns White Jeffrey S. Adler 1001 Conshohocken State RdW. Conshohocken, PA 19428
Capehart Scatchard Glen R. Paulsen 142 West State StreetTrenton, NJ 08608
Cooper Levenson Kenneth Calemmo,Jr. 1125 Atlantic AvenueAtlantic City, NJ 08401
Cozen O’Connor Peter J. Fontaine 1650 Market St, Suite 2800Philadelphia, PA 19103
Deasey Mahoney & Valentini Carla Maresca 1601 Market St., Suite 3400Philadelphia, PA 19103
Dilworth Paxson Michael Tierney 1500 Market St., Ste 3500EPhiladelphia, PA 19102
Drinker Biddle & Reath Kenneth A. Murphy One Logan Square, Ste 2000Philadelphia, PA 19103
Duane Morris Alan C. Kessler 30 South 17th StreetPhiladelphia, PA 19103
Elliott Greenleaf John P. Elliott 925 Harvest Drive, Suite 300Blue Bell, PA 19422
Florio Perrucci Steinhardt & Fader Louis Cappelli, Jr. 1010 Kings Hwy, Bldg 2Cherry Hill, NJ 08034
Gawthrop Greenwood Sandra L. Knapp 17 East Gay Street, Ste 100West Chester, PA 19390
Genova Burns James Bucci 2 Riverside Dr, Suite 502Camden, NJ 08103
Jackson Lewis Michael S. Friedman 1601 Cherry St, Suite 1350Philadelphia, PA 19102
Kleinbard George R. Burrell 1650 Market St, 46th Fl.Philadelphia, PA 19103
Lamb McErlane Joel L. Frank 24 E. Market St.West Chester, PA 19381
Lauletta Birnbaum Gregory A. Lomax 591 Mantua Blvd.Sewell, NJ 08080
Long Marmero Douglas Long 44 Euclid StreetWoodbury, NJ 08096
Mattioni Michael Mattioni 399 Market St, Suite 200Philadelphia, PA 19106
Mattleman Weinroth &Miller Michael R. Mignogna 401 Route 70 East, Suite 100Cherry Hill, NJ 08034
McCann & Duffy Patricia S. Duffy 128 Pottstown PikeChester Springs, PS 19425
Legal Services RFQ Approved FirmsAll firms must comply with DRPA Political Contribution Certification Requirement prior to being awarded any legal work.
Firm Contact Person Mailing Address
Montgomery McCracken Paul H. Zoubek 457 Haddonfield Rd, Suite 600Cherry Hill, NJ 08002
Naples Law Bethann R. Naples 1515 Market St., Suite 1200Philadelphia, PA 19102
Obermayer Louis Kupperman 1617 JFK Blvd., 19th Fl.Philadelphia, PA 19103
Parker McCay Philip A. Norcross 9000 Midatlantic Dr., Suite300Mt. Laurel, NJ 08054
Raffaele & Puppio Michael V. Puppio,Jr. 19 West Third St.Media, PA 19063
Rubin Fortunato Wendy R. Hughes 10 South Leopard RoadPaoli, PA 19301
Shaff & Young Barbara L. Young One So. Broad St., Suite 1650Philadelphia, PA 19107
Stevens & Lee William J. Payne 620 Freedom Business Ctr.King of Prussia, PA 19406
Stradley Ronon William R. Sasso 2005 Market St., Suite 2600Philadelphia, PA 19103
Swartz Campbell Michael A. Cognetti 50 S. 16th St., 28th Fl.Philadelphia, PA 19102
Weber Gallagher Paul M. Fires 2000 Market St., Suite 1300Philadelphia, PA 19103
Weir & Partners John C. Eastlack 457 Haddonfield RoadCherry Hill, NJ 08002
Zarwin Baum Darwin R. Beauvais 1818 Market St., 13th Fl.Philadelphia, PA 19103
Zeller & Wieliczko Matthew B. Wieliczko 120 Haddontowne CourtCherry Hill, NJ 08034
Rates:
1. Legal Counsel for general and personal injury matters (excluding Workers’ Compensation or other mattersspecifically approved by the Board at a different rate) – a blended rate for all attorneys at $225/hr. General Counsel,at his discretion, may deem particular specialty matters to warrant a blended rate for all attorneys not to exceed$250/hr.
2. Workers’ Compensation - a blended rate for all attorneys at $175/hr.3. Paralegal personnel - $100/hr.4. The Authority does not pay for the services of clerical/secretarial personnel.5. The Authority does not pay for travel expenses to and/or from meetings at the Authority’s premises, including but
not limited to attorney’s travel time, mileage and tolls.6. The Authority requires advance notice and approval for all expenses in excess of $500.00.7. The Authority must approve the retention of any expert witnesses or consultants.8. The Authority shall not pay the costs of on-line legal research without prior approval.9. All expenses must be documented and reasonable.
AUDIT
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DELAWARE RIVER PORT AUTHORITY
Audit Committee Meeting
One Port Center2 Riverside DriveCamden, New Jersey
Wednesday, January 13, 2016
Committee Members:
Ricardo Taylor, Audit Committee Vice Chairman(Chairing for PA Auditor General Eugene DePasquale)
Victoria Madden, Chief of Staff (for Auditor GeneralEugene DePasquale) (via telephone)
Marian MoskowitzCharles FentressElinor HaiderRohan Hepkins
Others Present:
Amy Herbold, Senior Counsel, New JerseyGovernor's Authorities Unit
Chelsea Guzowski, Director of Economic andStrategic Initiatives, Pennsylvania Office of theBudget
David Rapuano, Esq., Archer & Greiner (New JerseyCounsel)
Stephanie Kosta, Esq., Duane Morris, (PennsylvaniaCounsel)
David Dix, Assistant to DRPA/PATCO ChairmanRyan Boyer
DRPA/PATCO Staff:
John Hanson, Chief Executive OfficerMaria Wing, Deputy Chief Executive OfficerRaymond J. Santarelli, General Counsel & Corporate
SecretaryKristen K. Mayock, Deputy General CounselStephen Holden, Deputy General Counsel
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DRPA/PATCO Staff: (continued)
Kathleen P. Vandy, Assistant General CounselJames White, Chief Financial OfficerToni Brown, Chief Administrative OfficerDavid Gentile, Inspector GeneralChristina Maroney, Director, Strategic InitiativesKyle Anderson, Director of Corporate CommunicationsJohn Rink, General Manager, PATCOSheila Milner, Administrative CoordinatorElizabeth McGee, Acting Records ManagerYvette Martelli, Administrative Coordinator
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I N D E X
Page
Roll Call 5
Open Session
Update from Outside Counsel:
Audit Committee Charter 6
Ethics Policy 7
Update from Inspector General:
Bridge Operations Management Audit 10
Cycle for future Management Audits 11
Proposed OIG 2016 agenda items
Procurement process (ContractAdministration, Engineering &Purchasing) 18
Revenue Audit/Toll Violations 19
Disability/FMLA program abuse 27
Timekeeping (SAP implementation) 32
Annual Financial Audit/Bowman & Company 35
Compliance Issues (in progress) 41
Pre-implementation Review of SAPERP System
Review of PACC Revenue
Review of NJEDA Ground Lease - RentCalculation
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I N D E X (Continued)
Page
Executive Session 45
Adjournment 46
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P R O C E E D I N G S
(11:08 a.m.)
VICE CHAIRMAN TAYLOR: I would like to call to
order the meeting of the Audit Committee of the
Delaware River Port Authority and ask the Corporate
Secretary to call the roll.
MR. SANTARELLI: Good morning, Mr. Chairman.
Vice Chairman Taylor?
VICE CHAIRMAN TAYLOR: Here.
MR. SANTARELLI: Commissioner Moskowitz?
COMMISSIONER MOSKOWITZ: Here.
MR. SANTARELLI: Commissioner Fentress?
COMMISSIONER FENTRESS: Here.
MR. SANTARELLI: Commissioner Haider?
COMMISSIONER HAIDER: Here.
MR. SANTARELLI: Commissioner Madden?
COMMISSIONER MADDEN: Here.
MR. SANTARELLI: Commissioner Hepkins is here
as well. We have a quorum.
VICE CHAIRMAN TAYLOR: There are two items for
open session. The first item is an update from
outside counsel regarding two matters. Number 1 is the
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Audit Committee Charter and the Ethics Policy.
MR. SANTARELLI: Ms. Kosta and Mr. Rapuano are
here to address any questions.
MS. KOSTA: Hi, Stephanie Kosta, Duane Morris,
Pennsylvania counsel. We are continuing to collect
the Commissioners' comments on the Audit Charter to
review. I welcome your comments and your revisions.
Again, we want the Charter to reflect what is actually
happening here in the Committee. We don't actually
think the document reflects that at this moment. So
if everybody could get their comments to either New
Jersey counsel or me, we'll continue the revisions.
MR. RAPUANO: Dave Rapuano, New Jersey
counsel. I really urge -- especially the New Jersey
Commissioners on the Committee -- that if you have
comments or questions, to direct them to us so that we
get a sense of where the Committee wants to go.
This whole process started out, I think,
without any direction from the Committee and,
therefore, right now we're still trying to figure out
what is the Committee's view on the various proposed
changes. So, that's where we are with that.
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On the Ethics Policy, we have a draft that is
up for review today. If you have any questions about
it, that would be fine. But, otherwise, I think
that's ready for a vote from this Committee to send it
to the full Board for adoption.
VICE CHAIRMAN TAYLOR: Are there any questions
from anyone on the Committee, including anyone on the
phone, about the Ethics Policy before we take a motion
to send it to the full Board?
MR. GENTILE: Commissioner Taylor, if I could
ask just one question? David, we prepared the SS&R.
However, part of the proposed Ethics Policy stipulates
that the Board shall form and select members of an
Ethics Committee. Is that something that has been
addressed with any Committee or with the Board
previously as to who is going to constitute membership
on that Committee?
MR. RAPUANO: Can you point me to the specific
section that you're talking about?
MR. GENTILE: Yes, page 7(e), Ethics
Committee.
MR. RAPUANO: No. I mean I don't think the
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Board has talked about that. Again, this is something
that we've been talking about for months, but I don't
think there has been any specific discussion with
respect to who would be on the Committee.
VICE CHAIRMAN TAYLOR: Well, what would be the
best way to formulate a Committee? Volunteers, or
would the Chairman suggest -- ?
MR. SANTARELLI: The Chairman usually appoints
the Committees.
VICE CHAIRMAN TAYLOR: So, we would ask the
Chair to appoint an Ethics Committee. Is everyone
okay with that?
COMMISSIONER HAIDER: And/or would it not be
unreasonable for the Audit Committee to head the
Ethics Committee until such time as the Chair has an
opportunity to just integrate it into what we do?
VICE CHAIRMAN TAYLOR: Very good point. Any
other comments?
MR. GENTILE: I would hope that the Inspector
General would also be asked to serve on that
committee.
COMMISSIONER HAIDER: It's stated there in the
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“Ethics Committee” section of the Ethics Policy.
VICE CHAIRMAN TAYLOR: Yes, it's there. Any
other comments?
MS. KOSTA: Just so we’re clear; the limited
function of the Ethics Committee is to review the
Ethics Policy on an annual basis.
VICE CHAIRMAN TAYLOR: Right.
COMMISSIONER HAIDER: So, in some ways it
doesn't make sense to set up a separate committee.
VICE CHAIRMAN TAYLOR: That's a very good
point. Any other comments? All right, I will accept
a motion to move the Ethics Policy to the Board for
its consideration.
COMMISSIONER FENTRESS: Move the motion.
COMMISSIONER MOSKOWITZ: Second.
VICE CHAIRMAN TAYLOR: Can we have a roll
call?
MR. SANTARELLI: Vice Chairman Taylor?
VICE CHAIRMAN TAYLOR: Yes.
MR. SANTARELLI: Commissioner Fentress?
COMMISSIONER FENTRESS: Yes.
MR. SANTARELLI: Commissioner Moskowitz?
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COMMISSIONER MOSKOWITZ: Yes.
MR. SANTARELLI: Commissioner Haider?
COMMISSIONER HAIDER: Yes.
MR. SANTARELLI: Commissioner Madden?
COMMISSIONER MADDEN: Yes.
MR. SANTARELLI: Commissioner Hepkins?
COMMISSIONER HEPKINS: Yes.
MR. SANTARELLI: Treasurer Reese, are you
still on the line? It's unanimous.
VICE CHAIRMAN TAYLOR: All right. The second
item is an update from the Inspector General regarding
five matters. Mr. Gentile?
MR. GENTILE: Thank you, Commissioner Taylor.
The first matter that I'd like to address is the
Bridge Operations Management Audit. As you all know,
we have just completed the PATCO Management Audit and
we have begun discussions with our colleagues with
regard to the scope of services that we would like to
utilize in formulating the RFP.
On December the 17th, we met with Dan Auletto
and his team to review our proposed scope of services.
On January the 4th, we met with Mike Venuto to review
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again the scope of services and to solicit their
recommendations for additions, deletions,
modifications. On January 22nd, the entire team will
reconvene for the purposes of trying to come to
consensus as to what will constitute the scope of
services that we will utilize in preparation for the
Bridge Operations Management Audit RFP.
We'll start to put the other integral parts of
the RFP together once we have agreement on
specifically what we want our management consultant to
focus on. That would be contained in the scope of
services.
MR. HANSON: Can I just make a comment and
perhaps a request, if you're willing to entertain it?
The Board changed the approach to management audits
some time ago. The Compact requirement used to be
that we do one comprehensive management audit every
five years. Now, we've broken it up into several
pieces. This is one piece.
In my professional opinion as a certified
public accountant and with my experience here on the
Board, that is not a good way to accomplish these
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audits. It's very difficult to evaluate, for
instance, the administrative department independent of
the operational outputs. It's very difficult to
evaluate the bridges independent of the administrative
and public safety effort that support them.
I would ask at some point, when the Audit
Committee feels comfortable with and if they agree
with this approach, to direct either myself or
Inspector General Gentile to prepare a resolution to
put management audits on a four or five-year cycle for
a comprehensive audit. I think we have discussed
that, and I think we're in agreement.
VICE CHAIRMAN TAYLOR: So, in other words,
break it down from the five and do it in intervals so
we don't jam ourselves up --
MR. HANSON: Right now we're doing an audit
every couple of years.
VICE CHAIRMAN TAYLOR: Right, right.
MR. HANSON: We're in a constant state of
audit and preparation for audit. It's hard for us to
respond to the audit requirements. In addition, when
you audit the administrative department independent of
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what's going on at the bridges and PATCO, how can you
evaluate their effectiveness if you can't consider
what's the core mission of the business. And, by the
same token, how do you really evaluate the
effectiveness of the bridges and the PATCO line if
you're not considering the administrative effort that
goes into it?
My belief is, and I think David and I agree on
this, is that if we put it all together we'd be in a
better position. First of all, it's probably going to
be cheaper in the long run. Secondly, we'll have time
to actually implement some of these functions before
we discuss them, figure out how to fund them, and
truly improve the Authority.
We've discussed it a few times. But now, I'm
taking it to the next level and asking you to consider
taking some action at some point.
VICE CHAIRMAN TAYLOR: What would we need to
do as far as the Audit Committee? We'd have to
present it to the full Board?
MR. HANSON: I think you should discuss it.
And if you agree, you could instruct Inspector General
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Gentile or myself or both of us to prepare a
resolution that would put us on a different cycle with
a comprehensive audit.
VICE CHAIRMAN TAYLOR: Any other comments?
COMMISSIONER HAIDER: So, would it be prudent
to table the Bridge Operations Audit until we have
this discussion about a more comprehensive audit?
MR. HANSON: I think we have to do the Bridge
Operations Audit at this time in order to complete
this cycle. Then, once we've completed this last
audit under the two-year cycle, we can start doing a
comprehensive audit going forward.
MR. GENTILE: That, of course, is one
discussion that we have addressed, the second being
the other option. Being that while the compact
originally called for five years and the most recent
SS&R every two years, then maybe we go to a four-year
cycle to handle the four projects that are contained
within the management audit.
MR. HANSON: That was the Inspector General's
idea and I concur with it. By doing the audits all
together we could really make more of a difference.
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MR. GENTILE: Commissioner Taylor and
Commissioners, it takes at least two years to procure
the services and perform the audit, and really it does
not allow a lot of time subsequently to look at
management's recommendations, like many of which are
emanating from the PATCO audit. We're still dealing
with that, and yet we're in the midst of trying to put
together the RFP for the Bridge Operations Management
Audit, which I think is not doing justice to many of
the recommendations contained within that PATCO audit.
So however the Committee and the Board wants
to reframe these management audits, I'm certainly open
to whatever recommendations are provided.
VICE CHAIRMAN TAYLOR: Well, I would ask you
and John to get together and give your recommendation
to us, and the Audit Committee will review it. And
then we will present it to --
MR. SANTARELLI: I want to point out that
Pennsylvania is considering putting a requirement for
biennial audits for this Authority into the pending
legislation that we talked about during the Finance
Committee meeting. Again, it's something that we would
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be opposed to.
I talked to Representative Keller, who is the
Minority Chairman on the Transportation Committee. He
understands that it is our position that biennial
audits, for all the reasons that you and the Inspector
General have stated, make it very difficult for us to
complete an audit, evaluate it and implement any of
its suggestions.
MR. HANSON: Sometimes, when people who aren't
intimately familiar with the operation of the
Authority make recommendations like the Pennsylvania
legislature has made, some terms get used in different
ways. We already do an annual financial audit. We do
a biennial inspection of all of our facilities, and
then we've got the management audit as well. So, we
have no shortage of audits, inspections, and things
like that, and we do them on different cycles.
At one time, one of those groups recommended
we have a biennial financial audit. That wouldn't work
for us; we need to do it annually for our bond
trustees. So, I'm not sure what that legislation
says. I'll have to take a look at it.
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MR. SANTARELLI: I just raised it so that you
understand what they are thinking, but I don't know
where it's going.
MR. GENTILE: Well, I'd like to underscore
again that we are involving our Authority colleagues
in the development of the scope of services that
ultimately will be the framework for implementation of
the proposal for the next management consultant that's
brought in.
I would also add that we learned a lot from
this last PATCO Management Audit that I believe will
help guide us as we prepare for the implementation of
this next audit.
COMMISSIONER HAIDER: So, this Bridge
Operations Audit is the last of the stand-alone audits
until we review this more comprehensive proposal?
MR. GENTILE: That's correct, Commissioner
Haider.
COMMISSIONER HAIDER: Which would be at the
next meeting?
MR. GENTILE: Correct.
COMMISSIONER HAIDER: Okay.
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VICE CHAIRMAN TAYLOR: Any other comments?
Okay, the next item?
MR. GENTILE: As the Committee knows, we're a
little short-staffed at the present time. In lieu of
conversations that I've had with Commissioner Taylor
and also with our CEO, we're going to look at some
short-term initiatives rather than more substantive
issues until we can come to an understanding based
upon the Committee that you have put together,
Commissioner Taylor, with some of the colleagues here
both on the Audit Committee and on the Board as to
where our primary focus should reside.
So taking that into consideration and also
taking into consideration that we're trying to do much
with the recommendations contained in the PATCO audit,
getting ready for the annual financial audit,
preparing for the RFP of the Bridge Operations Audit,
it was my recommendation that we look at short-term
initiatives over the next two to three months pending
the inclusion of others on this Board and on this
Committee with regard to OIG's overall agenda.
So, with that, I had indicated with regard to
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the procurement process, now I know finance had a
rather comprehensive discussion of the procurement
process, but we will be engaged in a separate
direction associated with what they're proposing. We
simply will review documentation of sample procurement
transactions for compliance and consistency. That
data will help us to develop statistics, thus allowing
us to focus on contracts above a developed threshold
for further analysis and possible audit.
Of course, SAP is going to help us
significantly with Excel spreadsheets with regard to
the procurement process. But, again, this is not an
investigation. It's not an audit. It's simply a
review of sample procurement transactions that allow
us to report back to the Committee with regard to our
findings and how they are being addressed with regard
to their use. Okay?
VICE CHAIRMAN TAYLOR: Any comments?
MR. GENTILE: Anybody have any comments on
that?
This next one I don't know quite how to
address or how to propose a solution. I have included
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a Revenue Audit of Toll Violations. I did a little
bit of digging, and I was provided with some data that
suggested that this Authority is losing between
$800,000 and $1 million a year vis-à-vis toll evaders.
To me that's quite a bit of money. And I don't know
what the resolution to that dilemma might be. I don't
know if we need to work in collaboration with the
Division of Motor Vehicles, if we need to turn the
matter over to legal for litigation purposes, or if we
need to use the media to identify some of our chronic
abusers, most of which are commercial entities.
But, I think this is a problem, and I'm
prepared to initiate any action that the Committee or
the Board deems appropriate in terms of remediating
what I consider to be a significant loss of money on
an annual basis.
VICE CHAIRMAN TAYLOR: I would like to ask for
any comments, because I know I have some ideas. I
don't know how legal or illegal they are, but I think
that's a significant amount of money. I think we need
to have a game plan on how we go about recovering
those losses. And I don't know the ins and outs of
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the DMV. Legal, I would ask what our parameters are,
what we can and cannot do.
But, interestingly, in talking to Mr. Gentile,
a lot of the toll evaders are commercial vehicles.
Say we find out that trucks belonging to a major motor
freight company are going over our bridges and not
paying. Do we publicize it? Do we embarrass people?
Certainly a company doesn’t want to be in the
newspaper as a violator of tolls when other people are
paying.
Let me know any ideas that you may have and
I'll ask our legal department to tell us what we can
and cannot do.
MR. HANSON: Just from a foundational
perspective, I found that this data on violations can
be hard to chase sometimes. There are some
complexities to it. For instance, say you have an
E-ZPass account and you've registered your car and
your license plate. If your transponder is dead, what
happens is that when you go through the toll gate the
arms opens but it reports as a violation. Our cameras
then take a picture of your license plate, searches
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our database, and ultimately recovers the money from
your account.
I can tell you that this has been one of our
major violation issues. It shows as a violation and
we report it as a violation. But those types of
technical violations are much higher than actual
violations – violations where we never recover the
money. You got this information from the Finance
Department?
MR. GENTILE: Revenue.
MR. HANSON: From Revenue Audit. I think a
good place to start is that we should get reports of
violators from the Finance Department, at least up to
some threshold, and determine whether we ultimately
recovered the toll.
MR. WHITE: Right.
MR. HANSON: I think the first step would be
for the Finance Department, perhaps in conjunction
with the Inspector General, to develop a reporting
mechanism that lets us know how many real violators
there are and who they are, so that we can begin to
address them right away while Legal does their --
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VICE CHAIRMAN TAYLOR: Right. You make a good
point. We don't want to embarrass ourselves by
targeting someone who actually paid their toll. But,
talk to Mr. Gentile.
MR. SANTARELLI: Absolutely.
VICE CHAIRMAN TAYLOR: One of the biggest
offenders are car rental people.
MR. GENTILE: Yes.
VICE CHAIRMAN TAYLOR: Someone renting a car
doesn’t care about toll violations because he turns
the car in at the airport and is out of there.
COMMISSIONER FENTRESS: But, by the same
token, when they don’t pay their toll the camera
should take a picture of the license plate. What we
have to do is have NCIS look it up and send that
person the ticket. If it's a car rental agency, you
send it to them. They'll get back to the original
renter of the car.
MR. HANSON: I don't think there is a ticket
violation for this.
COMMISSIONER FENTRESS: Other agencies, when
you do it with other agencies, they get treated that
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way. They send you the ticket in the mail.
MR. HANSON: I know they do. I don't think,
though, that we've got the same statutory powers as
agencies that belong to one state or the other.
COMMISSIONER FENTRESS: Well, you have to work
that out. I'm sure they have something on the books.
VICE CHAIRMAN TAYLOR: I don't want us to have
to wait for the car rental company to go to the
customer that rented the car to get our money.
MR. HANSON: No, the owner of the car owes us
the money. So, that would be --
VICE CHAIRMAN TAYLOR: That would be the car
rental company. So, the car rental company has to pay
us the money and they would have to pursue the money
from their customer.
MR. HANSON: That's their problem.
VICE CHAIRMAN TAYLOR: That's their problem,
correct.
MR. SANTARELLI: I think they actually have
that in rental contracts now.
MR. HANSON: They do.
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MR. GENTILE: The bureaucracy of that is
complicated.
COMMISSIONER MOSKOWITZ: Is there any system wherein
an E-ZPass violation voids the E-ZPass transponder?
MR. HANSON: Well, if they have an E-ZPass,
they don't typically violate, particularly if they've
registered their license. Either the E-ZPass works
or, if it doesn’t, we take a picture of their license
plate and we go to the database and get the money from
--
COMMISSIONER MOSKOWITZ: I thought you were
saying that some of these companies violate using
E-ZPass.
MR. HANSON: No. Well, what happens if you
pull up to the E-ZPass gate and you don't have an E-
ZPass, or your E-ZPass isn't working, is that the gate
goes up and the sign indicates ‘Unpaid, call E-ZPass.’
We take a picture of the license plate and that goes
through our back office channels and they send them a
--
MR. WHITE: Citation.
MR. HANSON: Well, we send them a bill, not a
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citation. If we sent a ticket, even if there is a
violation, the fine money would not go to DRPA. It
would go to whichever jurisdiction we've written the
ticket in, either Philadelphia or whatever town. We
do not statutorily have the legal right to suspend
registrations the way municipalities have. At least
that's what we have been advised in the past.
MR. GENTILE: Well, I'll be more-than-happy to work
with Revenue and certainly with Finance, if I can save
this Authority $1/2 million or so a year.
MR. HANSON: That would be awesome.
MR. GENTILE: Put that in Mr. White's coffers,
then maybe I can come back to him and he can find the
money for one of my projects that's currently on hold.
VICE CHAIRMAN TAYLOR: You had something else?
COMMISSIONER FENTRESS: No, that was it. They
take a picture of the license plate and also you.
They take a picture of you, too.
VICE CHAIRMAN TAYLOR: All right, so that's
something we'll address. And Legal, once again, if
you'll just follow up on what our cans and cannots --
MR. SANTARELLI: Will do.
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MR. WHITE: I think part of the solution here
is a combination of OIG, Legal, and Finance getting
together. There have been different attempts over the
years. As part of the processing with E-ZPass, there
are notices that go out to try and recoup the toll.
But, we need to reevaluate the whole process. The
combination of those groups is important to do that.
VICE CHAIRMAN TAYLOR: Anything we can do to
stop losing money is certainly all right.
The next item?
MR. GENTILE: Again, I'm a little -- I have to
be somewhat circumspect about this because the
Disability/FMLA Programs are designed to help many of
our colleagues that are definitely in need of the time
that is required for recuperation or for family
related issues. But there are occasions when
individual abuse does occur.
I've recently had two allegations that I'm
going to define simply as allegations. We're going to
look into those. I don't believe that there is
widespread abuse of either the disability or the FMLA
programs across the Authority. I have asked one of our
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colleagues on the 10th floor to provide me with a
listing of those receiving FMLA and/or on disability
for a one-year period of time.
I did this to shield the identity of the two
individuals that have been referred to us for possible
abuse. Again, I say that in a somewhat circumspect
manner, inquiry. But, I think it's something if there
are allegations that there is abuse of either program;
the integrity of these programs must be maintained at
the highest level.
And so we're going to take a brief review of
both of these programs over a one-year period of time.
If there is data that suggests abuse -- beyond the
marginal level that we believe might exist -- then
we'll extend that to possibly a three- or five-year
period of time. But, for the time being, it's going
to be a limited review.
MR. SANTARELLI: David, since that's part of
the department that I oversee, just let me know with
whom you're speaking and what it is that you want and
I'll make sure that we help you do what you need to do
to review that.
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MR. GENTILE: Yes, will do, Ray. As has been
the case with some other allegations involving ethical
or possibly quasi-criminal behaviors, it's the source
of the information that concerns me --
MR. SANTARELLI: Sure.
MR. GENTILE: -- first and foremost in terms
of motive, in terms of --
MR. SANTARELLI: I understand all that. It's
just that I want to make sure that if you're getting
something from people under my supervision, that they
give you what you're asking for.
MR. GENTILE: Absolutely.
MR. SANTARELLI: And I can help to facilitate
that.
VICE CHAIRMAN TAYLOR: Good, thank you.
MS. KOSTA: I'm sorry, I need to jump in here.
As outside counsel, I just want to caution about
questioning employees about FMLA; your questions could
actually be a violation of the FMLA. So reviewing the
programs is acceptable, but once you direct questions
at people, I think you do need to get counsel involved
to see what questions can and cannot be asked.
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MR. GENTILE: Well understood, Stephanie,
thank you. The information that we've asked for is
simply name and department and whether they are on
FMLA or on disability. We have not asked for any
other information that possibly could be a HIPAA
violation or in any way impugn the integrity of both
of those programs.
We understand that there are certain
parameters in which we need to operate. If there is
something based on the source of the information,
that's the person that will be interviewed, not
necessarily the individual that's been identified.
That will take us into the realm of the Legal
Department for further adjudication.
MR. RAPUANO: I'm concerned as New Jersey
counsel and also as someone who does employment law
and FMLA. FMLA isn't a program, it's a federal law
which we must comply with whether we like it or not.
I'm not saying that there aren't FMLA abuses by
employees, but this is not some sort of benefit
program to be audited other than for compliance
purposes. So the idea that we're going to be looking
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into who is on FMLA may be fine, but it's really from
a perspective of either whether there is abuse or
whether the FMLA is being complied with.
In my view, FMLA compliance should really go
under HR or under the GC's office because it's really
not an ethics issue, it's a legal issue of whether the
claims are being handled correctly legally. It's
either being done right or it's being done wrong, in
the same way that contracts could be done right or
done wrong. We want to make sure that, of course, the
people approving FMLA claims have the proper knowledge
to do it. But, I get concerned when I hear about
reviewing of FMLA as an ethics issue.
MR. GENTILE: Counselor, we're not talking
about an audit of FMLA or our disability programs. If
there are issues associated with abuse of either
program, we have an obligation to at least make an
inquiry as to the information that has been forwarded
to us on a singular basis. If that information can
somehow be corroborated from the complainant --
MR. SANTARELLI: Maybe we should continue this
conversation in Executive Session. I think we're
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getting a little far afield.
MR. GENTILE: Well, all I'm saying is that if
there is something substantive associated with either
program, we would not be involved. It would be then
referred on to our Legal Department for whatever
action is deemed appropriate.
The final proposed item, again being somewhat
circumspect, is the implementation of our new SAP
system. We are all now responsible for including our
own time on a daily basis. I'm not saying this could
potentially be an integrity issue. It may be an
integrity issue. There may be some that are not
properly recording their time. There might not be
situations or there may be situations where managerial
oversight is lacking with regard to safeguarding the
integrity of the timekeeping process.
Again, as part of the SAP implementation, we
will do a cursory review of several of the departments
within the Authority that do recording of time on a
daily basis, weekly basis, monthly basis to ensure
that what is being recorded is consistent with the
expectations of the program.
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MR. HANSON: What's the idea of a lack of
managerial oversight on that, because this system
requires management approval; recorded time doesn't go
forward for payment without management approval.
MR. GENTILE: Well, again, management approval
could be occurring without the understanding that some
may not be recording their time accurately. Some,
instead of an eight-hour day, might have indicated a
four-hour day, might not have cleared that with their
manager. I don't know, John. I don't know if there
is potential for any type of problems related to
recordkeeping with regard to time. All I'm saying is
that maybe this is something we ought to look at to
ensure the integrity of the program.
MR. HANSON: Right now, I think we're still in
a situation where we're still working the bugs out of
the system. We're doing what we have to do in order to
get the time in and get people paid. It's not that I
object to you looking at the process, but I think the
system will be tighter under SAP because it requires
everybody to put their own time in and certify that
their time is accurate. Then their supervisor has to
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approve the time and certify that it's accurate.
Is it possible that somebody is just
automatically approving their subordinates’ time
record without review? I suppose that's possible.
But the requirement is that the employee is
responsible to enter their own time and enter it
correctly or they can be disciplined. The supervisor
is responsible to for reviewing it and making sure
that it's correct; they should know what the right
time is because they are the one supervising them.
Then the supervisor approves it.
I'm not objecting to it, but I think the
purpose of this approach is to make time entry more
accountable than it is, so everybody is responsible
for recording their own time.
VICE CHAIRMAN TAYLOR: All right.
MR. GENTILE: I do not disagree with you.
It's a new program. Again, I'm suggesting simply a
limited review of multiple departments to ensure that
everyone is recording their time consistent with what
the program demands.
MR. HANSON: And I'm not opposed to it once we
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get the bugs out of the system.
VICE CHAIRMAN TAYLOR: So we still have bugs
that have to be addressed, and we'll go from that
point, okay. Next?
MR. GENTILE: This, of course, is quite
significant. The Annual Financial Audit with Bowman &
Company. I met with them back in August of 2015, and I
took the opportunity to go over with the auditors
their Comprehensive Financial Report for the years
ending 2014 and 2013.
I really thought that they did a very, very
good job with regard to our operating and capital
budgets. There were some issues that I brought up
with them that I am going to address with them when we
reconvene on January the 19th. And, of course, this
Financial Audit will be done in collaboration with our
colleagues from Finance. I would certainly invite
them to sit in on our January 19th meeting.
But I brought up with Bowman whether, based on
the last audit -- and that's the only one I had at my
disposal – the audits that had been done previously
were free from material misstatement, meaning any
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fraud or errors. And I homed in on material
weaknesses or any significant deficiencies that they
found. They said that they did not find any in the
last annual financial report. But I did address the
fact that they were not -- they were expressing
opinions on our internal controls. I felt that maybe
they needed to be a little bit more definitive with
the internal controls associated with our operating
and capital budgets.
Now, that's a matter for all of us to discuss.
I'm not trying to introduce another dimension to their
work or a dimension that's outside the scope of their
responsibility. But they state that their standard
operating procedures do not require expressing
anything but an opinion on our internal controls and I
was hoping that maybe something a little bit more
definitive would fall within their purview with regard
to their engagement with us. That is something that I
intend to discuss with them again when we meet on the
19th.
MR. HANSON: I'm not sure what you have in
mind, but that would be highly unusual. That would be
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problematic from a number of standpoints. The purpose
of these audits is for the auditor to express an
opinion on our Financial Statements. That's it. And
the opinion is not that the Financial Statements are
free from fraud, but that, to the best of the
auditors' opinions, the Financial Statements represent
accurately and fairly the financial position of the
Authority.
It's what CPAs are trained to do. It's what
they do. There are Special Purpose Reports that I
suppose you can get, but they wouldn't be part of this
audit. The ‘opinion’ is the opinion of the Financial
Statements. As a part of that, they test internal
controls to determine their audit plan. If internal
controls are considered to be weak, then they may do
more of what they call ‘substantive testing,’ which
means they'll look at more individual records and more
individual transactions to arrive at their opinions.
Things have changed a little bit since I
became licensed, but essentially it still does get to
this. They used to say that an opinion letter from an
accountant has three opinions, three paragraphs. And
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if you look at it and it has more than three
paragraphs, there is a problem.
What you're asking them to do is something
separate from the opinion on the Financial Statements.
Their purpose is not to detect fraud. It is to
provide a reasonable assurance that there is no fraud
and there are no material weaknesses in the internal
controls system. But even if those weaknesses did
exist, the auditors would compensate for that by doing
more substantive testing.
MR. GENTILE: Well, that's what I'm asking
for, John. I'm saying simply that if there is
evidence of material weakness or significant
deficiency, that possibly additional testing would be
required. Now whether that's going to fall within the
scope of their work once they get underway, that's
purely speculative on my part. I don't know.
I'm simply talking to them or asking them to
establish potentially a higher threshold with regard
to what we're asking them to do, if it's necessary.
MR. HANSON: Any material weaknesses or
deficiencies that they find, they're required to
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report to management and management has to deal with
them. There are three types of opinions that one can
get: a ‘clean opinion’ that says that, to the best of
the auditor’s knowledge and ability and based on the
audit, the Financial Statements are free from material
mistake. That's the type of opinion we want. That's
the one that we always get.
On the other end of the spectrum, if they find
so many deficiencies that they can't state that the
Financial Statements are free from a material
misstatement, then they would say so in a ‘negative
opinion.’ Or, if they say things are such that they
can't express an opinion, they ‘disclaim an opinion.’
And they have their own procedures for that.
If we get a clean opinion but there are
material problems, they report that. That comes out in
the Exit Conference with Jim and I and the Audit
Committee. Anything else that they're asked to do in
this regard would impair their independence, and then
they wouldn't be able to express an opinion on the
Financial Statements.
So you can talk to them, but I have serious
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reservations about it. I can tell you that at one
time a former Chairman of the Audit Committee,
Commissioner Teplitz, tried to go down this path with
McGladrey. McGladrey said they were required to
follow their own procedures in order to maintain their
independence.
They will report material issues. The thing
is that neither McGladrey, which is one of the largest
firms in the country, nor Bowman, have found any in
the last -- I don't know how many years it has been --
9 years, 12 years. We haven't had any. There was one
year in there when we had them. So, I'll be
interested to hear what the result of that is.
VICE CHAIRMAN TAYLOR: All right, Mr. Gentile,
you can speak to them, but I would like you to confer
with John and find out just what --
MR. GENTILE: When we meet on the 19th, I'm
not going to reinvent the parameters and the
methodology used for the Annual Financial Audit.
That's not my intent. My intent, again, is with the
entire issue of internal controls. That any of their
findings may move into the arena of the Office of
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Inspector General.
I'm trying to establish a partnership and working
relationship with them, not to detract from their
independence or to reinvent a relationship that is
outside the purview of their engagement.
VICE CHAIRMAN TAYLOR: All right. Next?
MR. GENTILE: Jim, are you okay with what I
just said with regard to convening on the 19th?
MR. WHITE: Yes, we'll certainly be there.
The only thing I was going to add is that Bowman's
been our auditor for the last year. We had McGladrey
three years prior. I don't know if you were looking
for something, but for Bowman, this was basically was
just their first year.
As part of their process, they certainly do
have conversations with and ask me, my staff, etc.,
about fraud. So there is some review of that, but
we'll certainly look forward to the meeting so we can
see what's happening.
VICE CHAIRMAN TAYLOR: All right. Next?
MR. GENTILE: Thank you. I want to move onto
the compliance issues.
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MR. SANTARELLI: If I can just interject, if
these involve any progress audits or investigations, I
would make the recommendation that any discussion
about those be put into the Executive Session.
MR. GENTILE: Before you make that
recommendation, Mr. Santarelli, with regard to the
PACC revenue, I simply have a handout to present to
the Committee members.
MR. SANTARELLI: That was a confidential
document you e-mailed around to the Committee
yesterday; is that correct?
MR. GENTILE: Correct. I have no intent to
discuss that in open session.
MR. SANTARELLI: Fine.
MR. GENTILE: Or, necessarily in Executive
Session. I wanted to get that out to members of the
Committee so that if it is an issue we need to address
in our February Audit Committee meeting, we can do so
in Executive Session.
MR. SANTARELLI: Yes, sir.
MR. GENTILE: As far as the NJEDA, I do concur
with you, sir; I would like to move that into
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Executive Session. Okay?
But regarding the pre-implementation review of
our SAP/ERP system; I did send that out to members of
the Committee and tried to provide an overview of what
the Office of Inspector General did in support of that
program.
As you all know, the SAP is replacing our
former legacy systems. The Banner system has been
used by the DRPA for Budget, Finance, HR, Inventory,
and so on and so forth, and PATCO used I believe the
Unisys system --
MR. WHITE: Yes.
MR. GENTILE: -- for Finance and Inventory. I
really would like to use this opportunity to extend
kudos to Kevin LaMarca, his team, the project
managers, and all the other individuals that
participated in what I thought was a very, very smooth
transition in the launching of the ERP/SAP system on
January the 4th.
Now, there are still some issues, still some
kinks to be worked out. There are still some
problems. But, I outlined for you what our role in
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the pre-implementation of that system entailed. In
the last paragraph -- and this is what I wanted to
call to your attention – I also indicated that
recommendations for implementation to address process
and control gaps were also presented to Mr. LaMarca. I
would like to report on the status of those
recommendations and the project management's responses
to those recommendations at our February Audit
Committee meeting. Okay.
VICE CHAIRMAN TAYLOR: Any other questions for
the Committee?
MR. GENTILE: But, again, I just thought that
the transition was handled in an extraordinarily
competent manner by our key people and project
managers and everyone else associated with that
program.
VICE CHAIRMAN TAYLOR: I'd like to call for a
motion to go into Executive Session.
COMMISSIONER FENTRESS: Move the motion.
VICE CHAIRMAN TAYLOR: The decisions made in
Executive Session will be made available to the public
when the issues are resolved.
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A motion has been made. I need a second.
COMMISSIONER MOSKOWITZ: Second.
VICE CHAIRMAN TAYLOR: All those in favor?
ALL: Aye.
VICE CHAIRMAN TAYLOR: Any opposed? All
right, we will now move into Executive Session.
(Off the record at 12:00 p.m.)
(On the record at 12:27 p.m.)
VICE CHAIRMAN TAYLOR: We are back into open
session.
MR. GENTILE: Commissioner Taylor, when I
spoke to you privately before today’s Audit Committee
meeting, I asked that you and your colleagues on the
Audit Committee and/or on the Board give some
consideration with regard to an evaluation criteria
that could be used for judging the effectiveness of
this department or ineffectiveness of this department
during the course of Calendar Year 2016. And I hope
that you will give that some consideration.
VICE CHAIRMAN TAYLOR: Not only are we going
to give it consideration, after we break I'm going to
set up a meeting with a group on the Audit Committee.
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We're going to set up some criteria, some standards,
and give you a better roadmap. So, we will have that
ready to go. We'll run it by Legal. And we'll go
from there.
MR. GENTILE: The last thing I have is that in
light of Mr. White's list of accomplishments in 2015,
I plan at the February Audit Committee meeting to have
an appropriate list of what we have done in terms of
the OIG during the course of Calendar Year 2015. And
I'll have that for you in advance of the Audit
Committee meeting.
VICE CHAIRMAN TAYLOR: Thank you.
I'll take a motion to adjourn.
COMMISSIONER FENTRESS: Move the motion.
VICE CHAIRMAN TAYLOR: Second?
COMMISSIONER HEPKINS: Second.
VICE CHAIRMAN TAYLOR: All those in favor?
ALL: Aye.
VICE CHAIRMAN TAYLOR: Any opposed? All
right.
(Whereupon, the Audit Committee Meeting was adjourned
at 12:28 p.m.)
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FREE STATE REPORTING, INC.Court Reporting Transcription
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C E R T I F I C A T E
This is to certify that the attached
proceedings before the Delaware River Port Authority
Audit Committee on January 13, 2016, were held as
herein appears, and that this is the original
transcript thereof for the file of the Authority.
_________________________Tom Bowman, ReporterFREE STATE REPORTING, INC.
FREE STATE REPORTING, INC.Court Reporting Transcription
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DELAWARE RIVER PORT AUTHORITY
Audit Committee Meeting
One Port Center2 Riverside DriveCamden, New Jersey
Wednesday, February 10, 2016
Committee Members:
Ricardo Taylor, Audit Committee Vice Chairman(Chairing for PA Auditor General Eugene DePasquale)
Ryan Boyer, Chairman of the DRPA/PATCO BoardsVictoria Madden, Chief Counsel, Pennsylvania AuditorGeneral Eugene DePasquale Auditor General (viatelephone)Marian MoskowitzCharles FentressRichard Sweeney
Others Present:
Christopher Howard, Chief Counsel, New JerseyGovernor's Authorities Unit
Chelsea Guzowski, Director of Economic andStrategic Initiatives, Pennsylvania Office of theBudget
David Dix, Assistant to DRPA/PATCO Chairman Ryan Boyer
DRPA/PATCO Staff:
John Hanson, Chief Executive Officer
Maria Wing, Deputy Chief Executive Officer (viaTelephone)
Raymond J. Santarelli, General Counsel & CorporateSecretary
Kristen K. Mayock, Deputy General CounselStephen Holden, Deputy General CounselKathleen P. Vandy, Assistant General CounselJames White, Chief Financial OfficerDRPA/PATCO Staff: (continued)
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Toni Brown, Chief Administrative OfficerDavid Gentile, Inspector GeneralChristina Maroney, Director, Strategic InitiativesKyle Anderson, Director of Corporate CommunicationsJohn Rink, General Manager, PATCOSheila Milner, Administrative CoordinatorElizabeth McGee, Acting Records Manager
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I N D E X
Page
Roll Call 4
Executive Session 4
Open Session
Frequency of Audit Committee Meetings 5
Adjournment 7
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P R O C E E D I N G S
(10:49 a.m.)
VICE CHAIRMAN TAYLOR: I'd like to call to
order the meeting of the Audit Committee of the
Delaware River Port Authority and ask the Corporate
Secretary to call the roll.
MR. SANTARELLI: Thank you. Good morning.
Chairman Taylor?
VICE CHAIRMAN TAYLOR: Here.
MR. SANTARELLI: Commissioner Sweeney?
COMMISSIONER SWEENEY: Here.
MR. SANTARELLI: Commissioner Fentress?
COMMISSIONER FENTRESS: Here.
MR. SANTARELLI: Commissioner Madden?
COMMISSIONER MADDEN: Here.
MR. SANTARELLI: Commissioner Moskowitz?
COMMISSIONER MOSKOWITZ: Here.
MR. SANTARELLI: I believe that's everyone,
and you have a quorum.
VICE CHAIRMAN TAYLOR: I'd like to call for a
motion to go into Executive Session. The decisions
made in Executive Session will be made public when the
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issues are resolved. I need a motion.
COMMISSIONER FENTRESS: Move the motion.
VICE CHAIRMAN TAYLOR: I need a second.
COMMISSIONER MOSKOWITZ: Second.
VICE CHAIRMAN TAYLOR: All right, we will now
move into Executive Session. And we'll clear the
room.
(Off the record at 10:50 a.m.)
(On the record at 11:31 a.m.)
VICE CHAIRMAN TAYLOR: All right, we are back
in Open Session. There is one item for consideration:
the frequency of the Audit Committee meetings. I
think, first of all, the Inspector General's Office is
understaffed at this point and until such time as it
is fully staffed, it puts undue pressure on the
Inspector General and Mr. Aubrey to hold the meetings
monthly.
I would like to go back to having Audit
Committee meetings every three months, with
additional, emergency meetings if necessary. But I
don't know that there is a need to have a monthly
Audit Committee meeting.
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MR. SANTARELLI: I would just point out to the
Commissioners that in the Audit Charter which is in
effect -- I know there is also a revised draft that is
circulating, but there is an Audit Charter currently
in effect.
VICE CHAIRMAN TAYLOR: Yes.
MR. SANTARELLI: It was adopted in 2010, when
the Audit Committee was created. It says that the
Audit Committee shall meet at least four times a year,
which would be every three months.
VICE CHAIRMAN TAYLOR: Right.
MR. SANTARELLI: With the expectation that
additional meetings may be required. So, you're only
required by the Charter to meet four times a year.
VICE CHAIRMAN TAYLOR: Right, yes. So if an
emergency necessitates, we can meet, we can call a
meeting.
MR. SANTARELLI: Yes, there are procedures
that we need to employ to advertise and give notice of
those meetings.
VICE CHAIRMAN TAYLOR: Right.
MR. SANTARELLI: But subject to that, sure,
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you can have four regular meetings a year and then
other meetings, as needed.
VICE CHAIRMAN TAYLOR: I need a motion.
COMMISSIONER SWEENEY: Move the motion.
COMMISSIONER FENTRESS: Second.
VICE CHAIRMAN TAYLOR: All those in favor?
ALL: Aye.
VICE CHAIRMAN TAYLOR: Any opposed? All
right.
MR. SANTARELLI: If you can give me the dates
of when those remaining meetings will be, we can make
sure that they get advertised and noticed publicly so
everyone knows that those will be the Audit meetings
for the remainder of the year.
VICE CHAIRMAN TAYLOR: Very good. Thank you,
Ray. All right, there is no further business for the
Audit Committee. May I have a motion to adjourn?
COMMISSIONER FENTRESS: Move the motion.
VICE CHAIRMAN TAYLOR: Second?
COMMISSIONER SWEENEY: Second.
VICE CHAIRMAN TAYLOR: All those in favor?
ALL: Aye.
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VICE CHAIRMAN TAYLOR: Any opposed? Thank you
very much for your time.
(Whereupon, the Audit Committee Meeting was
adjourned at 11:29 a.m.)
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C E R T I F I C A T E
This is to certify that the attached
proceedings before the Delaware River Port Authority
Audit Committee on February 10, 2016, were held as
herein appears, and that this is the original
transcript thereof for the file of the Authority.
_________________________Tom Bowman, ReporterFREE STATE REPORTING, INC.
NEW BUSINESS
SUMMARY STATEMENT
ITEM NO.: DRPA-16-029 SUBJECT: Consideration of Pending DRPAContracts (Between $25,000 and $100,000)
COMMITTEE: New Business
COMMITTEE MEETING DATE: N/A
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board consider authorizing staff to enter into contracts as shownon the Attachment to this Resolution.
PURPOSE: To permit staff to continue and maintain DRPA operations in a safe andorderly manner.
BACKGROUND: At the Meeting held August 18, 2010 the DRPA Commission adoptedResolution 10-046 providing that all DRPA contracts must be adopted at anopen meeting of the DRPA Board. The Board proposed modifications tothat Resolution at its meeting of September 15, 2010; specifically that allcontracts between $25,000 and $100,000 be brought to the Board forapproval. The contracts are listed on the Attachment hereto with theunderstanding that the Board may be willing to consider all of thesecontracts at one time, but if any member of the Board wishes to remove anyone or more items from the list for separate consideration, each memberwill have that privilege.
SUMMARY: Amount: N/ASource of Funds: See Attached ListCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: N/A
DRPA-16-029New Business: February 17, 2016
Board Date: February 17, 2016Consideration of Pending DRPA Contracts
(Between $25,000 and $100,000)
RESOLUTION
RESOLVED: That the Board authorizes and directs that subject to approval by theChair, Vice Chair, General Counsel and the Chief Executive Officer,staff proceed to negotiate and enter into the contracts listed on theAttachment hereto.
SUMMARY: Amount: N/ASource of Funds: See Attached ListCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: N/A
CONSIDERATION OF PENDING DRPA CONTRACTS (BETWEEN $25,000 - $100,000) – FEBRUARY 17, 2016
DRPA
Item # Vendor/Contractor Description Amount Procurement Method Bids Received Bid Amounts Source of Funds
1 Networkfleet, Inc.
San Diego, CA
One (1) Year Service
Contract to provide
maintenance to theAuthority's Fleet GPS Units.
$55,030.80 In accordance with Federal GSA
Contract #GS-07F-5559R.
1. Networkfleet, Inc.
San Diego, CA
1. $55,030.80 Revenue Fund
2 Luminous Strategies
Philadelphia, PA
Not-To-Exceed Contract to
provide Board Support andDevelopment Services.
$75,000.00
(n-t-e)
Request for Proposals - Request for
Proposals was publically advertised andissued on September 10, 2015. Two
(2) technical proposals were received
from Luminous Strategies and
Paradigm Group Consultants. Anevaluation committee reviewed only
Luminous Strategies proposal because
Paradigm Group Consultants proposal
was deemed non-responsive.Luminous Strategies was deemed the
most responsive firm.
1. Luminous Strategies
Philadelphia, PA
2. Paradigm Group Consultants
Philadelphia, PA
1. $75,000.00 (n-t-e)
2. Non-Responsive
Revenue Fund
3 ePlus Technology, Inc.
Newtown, PA
Purchase of Ladder Racks
for One Port Center Data
Center.
$29,490.00 In accordance with New Jersey State
Contract #M-7000, Vendor Award
#87720
1. ePlus Technology, Inc.
Newtown, PA
1. $29,490.00 General Fund
4 SAP America, Inc.
Newtown Square, PA
SAP On-Site Technical
Training and Education for
the Authority's I.S. staff.
$35,155.00
(n-t-e)
Sole Source Provider - see attached
Sole Source Justification Memo marked
as "Exhibit 1".
1. SAP America, Inc.
Newtown Square, PA
1. $35,155.00 (n-t-e) Revenue Fund
SUMMARY STATEMENT
ITEM NO.: DRPA-16-030 SUBJECT: Strategic PlanningFacilitation and Advisory Services
COMMITTEE: New Business
COMMITTEE DATE: N/A
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate an agreement withVantagePoint Associates based in Philadelphia, to advise and assist theAuthority in the planning and facilitation of a series of strategicplanning sessions and the preparation of a five-year strategic plan thatreflects the strategic priorities of the Board of Commissioners andmanagement, includes broad-based stakeholder input, emphasizesimplementation and performance metrics, and that is in alignment withthe Authority’s planning and budgeting processes.
Amount: Not to exceed $190,446
Consultant: VantagePoint Associates
Other Consultants: Demosophia LLCJJA ConsultantsManagement Partners, Inc.Maverick & BoutiqueTranspro Consulting LLCTransTech ManagementWSP Parsons Brinkerhoff
PURPOSE: The Authority is committed to using the strategic planning process tofacilitate an open dialogue and to build community among the Board,staff and other stakeholders. The plan will be used to ensure continuityin decision making and resource allocation and to move us towardrealizing the organization’s vision.
Through the strategic planning process the Authority seeks to becomemore effective at strategy formulation and implementation and inensuring alignment across all divisions through the integration of thestrategic planning and budgeting processes with measurement andaccountability systems.
BACKGROUND: The Authority regards stewardship and public service as the root of itsmission and purpose. As stewards of important transportation assets
SUMMARY STATEMENT Strategic Planning Facilitationand Advisory Services
______________________________________________________________________________
that the Authority holds in trust for the public, it is committed tooperating transportation services and facilities safety, efficiently, and ina manner that creates value for the public it serves.
The Authority is succeeding in accomplishing its mission and is steadfastin its efforts to build even greater capacity to improve and sustain thequality and efficiency of the services we deliver.
To accomplish this, the Authority desires to systematically evaluate howit meets the needs and expectations of its customers and stakeholders andhow best to strategically address the critical challenges it faces such assuccession planning and workforce development, maintaining andimproving aging transportation infrastructure, and increased publicdemand for transparency and accountability.
The Authority believes that a wide-ranging strategic planning process isthe most effective systematic approach to define the critical issues, set itsstrategic direction for the future and identify strategic priorities that areessential to achieving its stewardship mission and vision and that ensureeffective governance and decision making.
Toward this end, in December 2015, the Authority publically advertisedits intent to retain a consultant to support the DRPA’s efforts to developa strategic planning process. Eight (8) firms submitted proposals onJanuary 22, 2016. A Proposal Evaluation Committee of five (5)evaluated the proposals against the evaluation criteria and VantagePointAssociates was the highest ranked firm.
VantagePoint Associates is a local firm based in Philadelphia. Foundedin 2002, VantagePoint is co-owned by principals Arlene Friner and WaltDesiderio. Ms. Friner is the proposed project manager and will beresponsible for overall planning and implementation support processes.She was formerly the Executive Vice President and Chief FinancialOfficer at Amtrak. Mr. Desiderio formerly held positions as VicePresident, Finance and Chief Finance Officer of Amtrak’s NortheastCorridor. He will lead the planning and analytical efforts related to thefinancial components of the strategy.
The team proposed for this engagement also includes two subcontractorfirms: Econsult Solutions, Inc. based in Philadelphia, and GlobalSynergies, LLC, of Merion Station, PA. Stephen Mullin, President and
SUMMARY STATEMENT Strategic Planning Facilitationand Advisory Services
______________________________________________________________________________
Principal of Econsult will lead the facilitation of the Board andmanagement planning sessions and the development of the strategicplan. Carol Smith, Principal at Global Solutions will be the lead forpublic outreach and external focus groups.
Together, this particular team possesses broad Transportationexperience with consultants who have held peer level positions inorganizations similar to DRPA and PATCO such as Amtrak, DVRPC,City of Philadelphia and PECO. They have also conducted similarengagements for the Pennsylvania Transportation Funding & ReformCommission, PennDOT, Columbia University (aligning budgets withstrategic plans), SEPTA, Montgomery County, Pennsylvania ConventionCenter Authority, VISIT Philadelphia and the City of Philadelphia.
Vantage Point’s proposal was extremely comprehensive and clearly andspecifically delineated tasks including accountability systems and budgetalignment. They recommend employing the balanced scorecardapproach in the Authority’s planning process to ensure that strategicobjectives, performance measures and capital investment decisions aredetermined by a broad set of financial, operational, customer andorganizational capacity factors or perspectives. This will also ensure thestrategic plan is a “living document” guiding the action s of the DRPA onan ongoing basis rather than a static snapshot in time.
The competitive selection process was qualifications-based and whileprice was included as part of the weighted proposal evaluation criteriaseveral firms included option pricing as respondents were encouraged topropose additional or alternative phases or approaches based on theirexperience and success with comparable engagements with similarorganizations.
The Proposal Evaluation Committee found VantagePoint Associatespricing to be fair and reasonable based on their proposed alternativescope of work and phasing which we found to be the mostcomprehensive and efficient of all the proposals.
SUMMARY STATEMENT Strategic Planning Facilitationand Advisory Services
______________________________________________________________________________
SUMMARY: Amount: $190,446Source of Funds: General FundCapital Project #: N/AOperating Budget: 2016Master Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 monthsOther Parties Involved: N/A
DRPA-16-030New Business: February 17, 2016
Board Date: February 17, 2016Strategic Planning Facilitation and Advisory Services
RESOLUTION
RESOLVED: That the Board authorizes staff to negotiate an agreement with VantagePointAssociates based in Philadelphia, to advise and assist the Authority in theplanning and facilitation of a series of strategic planning sessions and thepreparation of a five-year strategic plan that reflects the strategic priorities ofthe Board of Commissioners and management, includes broad-basedstakeholder input, emphasizes implementation and performance metrics, andthat is in alignment with the Authority’s planning and budgeting processes.
RESOLVED: The Chair, Vice Chair and the Chief Executive Officer must approve and arehereby authorized to approve and execute all necessary agreements, contracts,or other documents on behalf of the DRPA. If such agreements, contracts, orother documents have been approved by the Chair, Vice Chair and ChiefExecutive Officer and if thereafter either the Chair or Vice Chair is absent orunavailable, the remaining Officer may execute the said document(s) on behalfof the DRPA along with the Chief Executive Officer. If both the Chair and ViceChair are absent or unavailable, and if it is necessary to execute the saiddocument(s) while they are absent or unavailable, then the Chief ExecutiveOfficer shall execute such documents on behalf of the DRPA.
SUMMARY: Amount: $190,446Source of Funds: General FundCapital Project #: N/AOperating Budget: 2016Master Plan Status: N/AOther Fund Sources: N/ADuration of Contract: 12 monthsOther Parties Involved: N/A
DELAWARE RIVER PORT AUTHORITY
&PORT AUTHORITY TRANSIT CORP.
BOARD MEETING
Wednesday, February 17, 20169:00 a.m.
Board RoomOne Port Center
Camden, NJ
John T. Hanson, Chief Executive Officer
PATCO BOARD
PORT AUTHORITY TRANSIT CORPORATIONBOARD MEETING
Wednesday, February 17, 2016 at 9:00 a.m.One Port Center, 11th Floor, Board Room
ORDER OF BUSINESS
1. Roll Call
2. Report of the General Manager – February 2016
3. Approval of January 20, 2016 PATCO Board Meeting Minutes
4. Monthly List of Previously Approved Payments – Covering Month of January 2016
5. Monthly List of Previously Approved Purchase Orders and Contracts of January 2016
6. Approval of Balance Sheet and Equity Statement dated December 31, 2015
7. Approval of Operations & Maintenance Committee Meeting Minutes of February 2,2016
8. Adopt Resolutions Approved by Operations & Maintenance Committee of February 2,2016
PATCO-16-001 Approval of Title VI Submission to FederalTransit Administration
PATCO-16-002 Weed Control and Vegetation Management for 4Bridge Facilities and PATCO
PATCO-16-003 Temporary Transit Ambassadors
9. Unfinished Business
10. New Business
PATCO-16-004 Consideration of Pending PATCO Contracts(Between $25,000 and $100,000)
11. Adjournment
GENERAL MANAGER’S REPORT
REPORT OF THE GENERAL MANAGER
As stewards of public assets, we provide for the safe and efficient operation
of transportation services and facilities in a manner that creates value for the public we serve.
February 17, 2016 To the Commissioners: The following is a summary of recent PATCO activities, with supplemental information attached. HIGHLIGHTS
STEWARDSHIP
Completion of Bicycle Rack Installations in Subway Station Concourses – Thanks to CAC and Bicycle Coalition member John Boyle, PATCO has implemented recommendations from the DVRPC’s “PATCO Concourse Level Bicycle Improvement Evaluation” study. Using FTA funding under a Transit Enhancement Grant, PATCO purchased 33 bicycle racks. Cyclists are able to lock up their bikes at concourse level, with the first units installed at Locust Street Stations last year in areas visible to surveillance cameras. With the installation of additional cameras at City Hall and the Chestnut Street Concourse that serves 8th/Market Street Station, bike racks have now been installed at those two stations, completing the project. Bike racks are now available at all 13 stations.
General Manager’s Report – for February 17, 2016 Meeting
City Hall Station Tour & Blog – At the request of several individuals interested in transit and the history and development of Camden, PATCO hosted tours of our full City Hall concourse, including the tunnels that have long been closed off to the public. The Courier Post published a feature titled “What Lies Beneath Camden?” and in just two days, over 1500 people viewed a blog and photos on https://southjerseyist.wordpress.com/2016/01/12/ghosts-of-city-hall-the-patco-station-youve-never-seen/.
Safety Slogan Contest – DRPA/PATCO invites all employees to submit entries in the annual safety slogan contest. This competition reminds everyone of our commitment to safety. PATCO Station Supervisor Fran Egolf won the contest this year with the following Escalators / Elevators – In January we again exceeded our goals. Availability of all escalators was 97.8%, and elevator availability was 98.9%.
Operational Percentage – January, 2016
Equipment Target Actual Variance Favorable / Unfavorable
Escalators (14) 90% 97.8% +7.8% F
Elevators (11) 97% 98.9% +1.9% F
SERVICE Service throughout the Snow Storm – On January 23 and 24, our region was hit with the fourth largest snow storm in history. PATCO implemented our snow plan, utilizing snow trains to keep running rails clear, an ice train dispensing de-icer, and numerous third rail and switch heaters. With the help of a snow plowing contractor at three stations, PATCO cleared all the parking lots; platforms and sidewalks were shoveled to serve our customers over the weekend and in preparation for the return of commuters on Monday morning. Positive feedback included comments such as “thank you for running through blizzards,” “Great job by PATCO getting me to work hassle free,” and “In my 33 years of taking PATCO to/from work, this is the BEST job I’ve ever seen relating to the clearing of the parking lots and sidewalks of snow!”
General Manager’s Report – for February 17, 2016 Meeting
COMMUNITY The Food Bank of South Jersey / White Horse Rotary Food Distribution – Despite procedural and weather challenges, we were able to host the monthly distribution of food to those in need at our Lindenwold Station. Thanks to our responsive Legal and Risk Management Departments, a 2016 Right of Entry Agreement was executed in time to kick off this year’s community service program. Girl Scouts Return to PATCO – Last year we received at least a dozen thank you notes from troops whose programming relies on the proceeds of cookie sales. With the permission of our Board and a Right of Entry Agreement in place, the Girl Scout Council has again coordinated Friday afternoon/evening sales at many of our stations. Scouts even greeted our passengers on the first day of our major January snow storm, undeterred by the weather. FINANCE
Reports do not include some year end adjustments which are still pending. These reports are unaudited and are marked as “Preliminary Only”.
PATCO Income year to date (through 12/31/15) amounted to $27,232,998 compared with a Budget Anticipated Income of $26,007,575, a favorable variance of $1,225,423 or 4.71%. Operating expenses during December 2015 amounted to $4,497,126, compared with a Budget Anticipated Expense of $4,147,114, an unfavorable variance of $350,012 or 8.44%. Year to date expenses totaled $48,534,448, compared with a Budget Anticipated Expense of $52,260,293, a favorable variance of $3,725,845 or 7.13%. During the month of December 2015, PATCO experienced a Net Operating Loss (excluding rental and non-recurring charges) of $1,809,460. The cumulative Net Operating Loss (excluding rental and non-recurring charges) through 12/31/15 totaled $21,301,450. Total Cumulative Loss year to date (including Lease Rental charges) equaled $27,423,450. Net Transit Loss (including lease expense) for the month ending 12/31/2015 was $2,319,627. Through December 31, 2015
2015 Budget
2015 Actual
Variance
Income $26,007,575 $27,232,998 $1,225,423 F Expenses $52,260,293 $48,534,448 $3,725,845 F Operating Ratio .4977 .5611 Passengers 10,200,000 10,169,487 30,513 U Car Miles 4,749,088 4,475,610 273,478
General Manager’s Report – for February 17, 2016 Meeting
The passenger count for the month of December 2015 totaled 872,108, an increase of 57,523 (+7.06%) when compared to December 2014. A comparison of calendars reveals that each December contained the same number of Saturdays and Sundays, but the holiday in 2015 was on a Friday, compared to the holiday in 2014 being on a Thursday, which may have contributed at least partially to the very positive variance in December of 2015. Ridership for all of 2015, including December totaled 10,169,487, an increase of 162,231 compared to 2014, a 1.62% increase in ridership.
PERSONNEL TRANSACTIONS
The following personnel transactions occurred in January, 2016: NAME POSITION DEPT. DATE APPOINTMENT(S) Damon Green Dispatcher Trainee Transit Services 1/25/16 Phillip Pritchett Dispatcher Trainee Transit Services 1/25/16 Nancelis Serrano Dispatcher Trainee Transit Services 1/25/16 APPOINTMENT(S) – TEMPORARY - None PROMOTION(S) Rachel Green From: Customer Service Agent Transit Services 1/23/16 To: Dispatcher Trainee Transit Services UPGRADE - None TEMPORARY ASSIGNMENT TO HIGHER CLASSIFICATION Phil P. Olivo, Jr. From: Foreman Fare Collection To: Acting Manager, Fare Collection Fare Collection 1/01/16 – 3/31/16 William R. Gobeler From: Technical Supervisor Transit Services To: Acting Director Transit Services 1/16/16 – 7/16/16 Patrick M. McBride From: Director Transit Services To: Acting Assistant General Office of the Manager General Manager 1/16/16 – 4/29/16 TRANSFER(S) - None
General Manager’s Report – for February 17, 2016 Meeting
RESIGNATION(S) - None RETIREMENT(S) Raymond Lewis Manager, Mechanical/ Custodial Equipment 1/15/16 Carmella Monteleone Administrative Secretary Safety 1/21/16 DECEASED – None PURCHASING & MATERIAL MANAGEMENT During the month of January, 172 purchase orders were issued with a total value of $704,864. Of the $637.60 in monthly purchases where minority vendors could have served PATCO needs, $598 was awarded to MBEs and $39.60 to WBEs. The $637.60 total MBE/WBE purchases represent 0.09% of the total spent and 100% of the purchases available to MBE/WBEs. With the implementation of SAP, we are not yet able to report the number of storeroom transactions and the book value of inventory on hand but expect to provide this information at the March Board Meeting. TRANSIT SERVICES The on-time performance for the 5,316 scheduled trips in January was 94.66%. A single incident accounted for 27% of annulled and 11% of delayed trains, and 71% of stations bypassed this month. At the beginning of our evening peak on January 13, we were informed that a tree on an adjoining property was damaged and the trunk was actively cracking, posing an imminent threat to our tracks and power lines and to any trains and passengers in the area. We suspended all service between Haddonfield and Woodcrest Stations from 4:35 p.m. until 6:30 that evening while tree removal experts worked quickly to cut down the tree and remove the hazard. During the service suspension, we sought assistance from NJ Transit, who provided as much shuttle service as they could and cross-honored our tickets. This one incident accounted for 21 annulments, 21 late trains, and 172 stations bypassed. If we recalculate on-time performance to remove the annulments and scheduled trains during the tree incident, on-time performance for January would be 95.68%. Cold, wintry weather also presents special challenges to keeping trains running. Although we perform maintenance diligently to make repairs and have sufficient trains available to run our frequent schedule, lack of equipment accounted for 11% of the incidents of delay this January, mirroring January of last year. The chart below provides additional details regarding the causes of delays and annulments in January, 2016:
General Manager’s Report – for February 17, 2016 Meeting
MAINTENANCE The following significant maintenance initiatives progressed in January:
Eleven (11) rebuilt motors one (1) quality used motor are available for installation as needed. Fifty-eight (58) motors are at vendors for repair, and thirteen (13) are being processed for shipment.
We have established a goal of 50 truck overhauls in 2016. One (1) truck was assembled in January. We will be swapping four (4) small wheel trucks with Alstom.
One (1) rebuilt gearbox is currently available. Two (2) wheelsets are assembled and ready for truck building. We are still relying heavily on UTC to support our gearbox overhaul program, but Penn Machine has started to deliver some gearboxes under the contract. Fifty-eight (58) gearboxes are at vendors for repair with 24 at UTC and 34 at Penn Machine.
In January during night shifts, we completed 48 exterior washes. Upon receipt of Vapor cleaners, interior “scrubs” will be moved to Track 3 in the annex building, freeing up the car wash during the day shift. In the interim, we cleaned 140 windshields and performed heavy cleaning of the interior of 12 cars.
Equipment Defect, 60%
Lack of Equipment, 11%
W&P Elec - Signal - Radio, 2%
W&P Track - Wayside, 6%
Passenger Issues, 2%
Trespasser, 2%
Public Safety Issues, 5%
Transit Operations, 7%
Weather, 1%
Deer/Animals, 1% Other, 2%
Brake/Comp 16 Doors 7 Window 6 Propulsion 4 OLCB 4 Misc 15
January 2016 Incidents
General Manager’s Report – for February 17, 2016 Meeting
Car overhaul - We have 28 overhauled cars on-site and 24 have been conditionally accepted.
Car Overhaul – Alstom-supplied test equipment – With respect to the S500 automated test station, resolution of the fault detection within the propulsion equipment is still pending. Software work stations are still pending.
Car Overhaul – In January, one Manager, two Foremen, seven Electronic Technicians and four AC Electricians completed diagnostic system training provided by Alstom. Low voltage power supply training is scheduled for February.
Our Mean Distance Between Failures continues to compare favorably with our goal. (See the blue dot below that represents January of 2016.)
SAP – The resource system went live on January 4, and the Equipment Department opted to run SAP in a test environment while maintaining our historical maintenance data in Unisys.
Response to snow storm of January 23-24, 2016 – Staff assisted with snow related conditions during the blizzard as well as residual snow issues through the end of the month.
Ties were replaced along #1 and #2 loops in Lindenwold Yard.
New LED Mongoose lighting fixtures within the Camden Yard storage/track area were installed.
0
1000
2000
3000
4000
5000
6000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Goal
2014
2015
2016
Mile
s
CAR MEAN DISTANCE BETWEEN FAILURES
General Manager’s Report – for February 17, 2016 Meeting
Right-of-way and signal inspections were performed.
Relay testing and repairs at interlockings and substations were performed.
Stations, subway tunnels, and parking lots were relamped as necessary.
Support services were provided as required for the following projects: o Testing of refurbished cars o Maintenance of fire-alarm systems o Maintenance of and enhancements to the 800 MHz radio system o Maintenance and repairs of escalators and elevators o Ben Franklin Bridge track structure inspections and repairs – provided flagging, scheduling
and guidance o Wiring modifications applied to the Camden Yard signal case (Contract 21E)
SAFETY The monthly report of the Safety Department is enclosed with this report. Respectfully submitted, John D. Rink General Manager
1. Staff was involved in the following activities concerning Contractor Safety:
Conducted Contractor’s Safety Briefings and created the necessary follow-up reports of safety briefings as shown below:
DATE CONTRACTOR PATCO
CONTRACT NO. PROJECT/WORK AREA
NUMBER IN
ATTENDANCE
01/04/16 AECOM BFB 5
01/04/16 Jacobs Engineering All PATCO sites 2
01/04/16 Jacobs Engineering Westmont 1
01/04/16 RCC 28-2007 Westmont 1
01/11/16 Simplex Grinnell PO 134852 All PATCO sites 1
01/11/16 Oliver Communications PO 134852 All PATCO sites 2
01/21/16 KS Engineers BRB Walkway 1
01/21/16 HNTB 21-E BFB 1
01/25/16 PATCO New Hires Transit Svc-Dispatcher
Trainees 4
01/26/16 RCC 28-2007 Westmont 1
Drug & Alcohol Tests – for January 2016 Random Drug only 10 Random Alcohol only 0 Random Drug & Alcohol Reasonable Suspicion Drug only Reasonable Suspicion Alcohol only
1 0 0
Post-Accident 0 TOTAL TESTS COMPLETED 11
MEMORANDUM PORT AUTHORITY TRANSIT CORPORATION of Pennsylvania & New Jersey
TO: John Rink
FROM: David Fullerton
SUBJECT: Monthly Report: Safety Department – January, 2016
DATE: February 3, 2016
2. Internal PATCO Safety Activities:
Conducted and participated in monthly SACC/Joint Workplace Committee meetings.
Conducted Bloodborne Pathogens/Defensive Driver Training (Transit Services Re-Instruction)
Conducted Security Drills (Equipment and Way & Power Depts) 3. Involvement in Authority Activities:
Participated in Programs & Activities subcommittee
Participated in Transit System Security Training (Houston, TX)
Participated in Incident Accident Investigation Committee 4. Outside Agency Involvement.
Not Applicable
General Manager’s Report
SERVICEo Snow storm – Jan. 23 & 24 – 4th largest in region
o Snow trains, ice trains, plowing by PATCO & contractor
o Lots of Positive Feedback such as:
“Great job getting me to work hassle free”
“Thanks for running through blizzards”
“In my 33 years of taking PATCO, this is the BEST job …clearing of the parking lots and sidewalks”
General Manager’s Report
• Escalator / Elevator Availability
o Escalators 97.8% 7.8% above goal
o Elevators 98.9% 1.9% above goal
General Manager’s ReportSTEWARDSHIP
o Bike Racks
• 2015 – installed in areaswith camera surveillance
• Added cameras & racks atCity Hall and 8th/Market-South
• Now at ALL stations
General Manager’s Report
o Safety Slogan – PATCO Winner
General Manager’s Report
COMMUNITY
o City Hall Tour “SouthJerseyist” Blog andCourier Post Feature on Camden’s Past
Positive Response
o 2016 Food Bank / White Horse Rotary Club fooddistribution began at Lindenwold Station – oneSaturday each month
o Girl Scout Cookie Sales at 7 stations
PATCO BOARD MINUTES
FREE STATE REPORTING, INC.Court Reporting Transcription
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PORT AUTHORITY TRANSIT CORPORATION
BOARD MEETING
One Port Center2 Riverside DriveCamden, NJWednesday, January 20, 2016
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PRESENT
Pennsylvania Commissioners
Ryan Boyer, Chairman of DRPA/PATCO BoardRohan K. HepkinsAntonio Fiol-SilvaJohn Dougherty (for Pennsylvania Auditor General
DePasquale)Timothy Reese, Pennsylvania State Treasurer
(via telephone)
New Jersey Commissioners
Jeffrey Nash, Esq., Vice ChairmanE. Frank DiAntonioCharles FentressAlbert FrattaliRichard SweeneyTamarisk JonesRicardo Taylor
DRPA/PATCO Staff
John Hanson, President (PATCO)/Chief Executive OfficerDRPA)
Maria Wing, Deputy Chief Executive OfficerRaymond Santarelli, General Counsel and
Corporate SecretaryKristen Mayock, Deputy General CounselStephen Holden, Deputy General CounselKathleen P. Vandy, Assistant General CounselJames White, Chief Financial OfficerDan Auletto, Acting Chief Operating OfficerToni Brown, Chief Administrative OfficerMichael Venuto, Chief EngineerSteve Reiners, Director, Fleet ManagementWilliam Shanahan, Director, Government RelationsBarbara Holcomb, Manager, Capital GrantsGary K. Smith, Captain of Police, Public SafetyMike Reher, Sergeant, Public SafetyJohn Rink, General Manager, PATCOSusan Squillace, Manager, Procurement and Stores
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DRPA/PATCO Staff (continued)
David Gentile, Inspector GeneralKyle Anderson, Director, Corporate CommunicationsFran O'Brien, Manager, Customer and Community
RelationsAmy Ash, Contract Administrator, Contract
AdministrationKevin LaMarca, Director, Information ServicesLarry Walton, Construction & Maintenance Manager,
Walt Whitman BridgeSheila Milner, Administrative CoordinatorElizabeth McGee, Acting Records ManagerNancy Farthing, Executive Assistant to the CEODawn Whiton, Administrative Coordinator to the
Deputy CEO
Others Present
Amy Herbold, Esq., Senior Counsel, New JerseyGovernor's Authorities Unit
Chelsea Guzowski, Director of Special Projects,Pennsylvania Governor's Office of the Budget
David Dix, Assistant to Chairman BoyerVictoria Madden, Chief Counsel (for Pennsylvania
Auditor General DePasquale) (via telephone)Christopher Gibson, Esq., Archer & Greiner,
(New Jersey Counsel)Alan Kessler, Esq., Duane Morris LLP
(Pennsylvania Counsel)Stephanie Kosta, Esq., Duane Morris LLP
(Pennsylvania Counsel)William Hosey, President, IBEW 351Richard Franzini, Business Agent, IUOE 542Olivia C. Glenn, Regional Manager, New Jersey
Conservation FoundationCraig Hrinkevich, Wells FargoTara Chupka (Assistant to John Dougherty)Brian Stevenson
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I N D E X
Page
Roll Call 5
Report of the General Manger - January 2016 6
Approval of December 9, 2015 PATCO BoardMeeting Minutes 9
Monthly List of Previously Approved PaymentsCovering the Month of December 2015 and MonthlyList of Previously Approved Purchase Orders andContracts of December 2015 10
Approval of Balance Sheet and Equity Statementdated November 30, 2015 10
Unfinished Business 11
New Business 11
Executive Session 11
Adjournment 11
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P R O C E E D I N G S
CHAIRMAN BOYER: Can we have a roll call?
MR. SANTARELLI: Chairman Boyer?
CHAIRMAN BOYER: Present.
MR. SANTARELLI: Vice Chairman Nash?
VICE CHAIRMAN NASH: Here.
MR. SANTARELLI: Commissioner Dougherty?
COMMISSIONER DOUGHERTY: Present.
MR. SANTARELLI: Commissioner DiAntonio?
COMMISSIONER DiANTONIO: Present.
MR. SANTARELLI: Commissioner Fiol-Silva?
COMMISSIONER FIOL-SILVA: Present.
MR. SANTARELLI: Commissioner Fentress?
COMMISSIONER FENTRESS: Here.
MR. SANTARELLI: Commissioner Hepkins?
COMMISSIONER HEPKINS: Present.
MR. SANTARELLI: Commissioner Frattali?
COMMISSIONER FRATTALI: Here.
MR. SANTARELLI: Treasurer Reese?
TREASURER REESE: Present.
MR. SANTARELLI: Commissioner Jones?
COMMISSIONER JONES: Here.
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MR. SANTARELLI: Commissioner Sweeney?
COMMISSIONER SWEENEY: Here.
MR. SANTARELLI: Commissioner Taylor?
COMMISSIONER TAYLOR: Present.
MR. SANTARELLI: You have a quorum.
CHAIRMAN BOYER: Thank you. Report of the
General Manager. John Rink, do you have any comments
on your report?
MR. RINK: Yes, thank you, Mr. Chairman and
Commissioners. Good morning. My report stands as
submitted, but I'd like to highlight the positive
direction in how PATCO ended the year 2015.
In regards to service, the bridge project
completed its daily weekday outages. Currently, they
are working weekends on punch list items. But we were
able, on January 4th, to return to our traditional
service on weekdays for the first time in two years.
We were able to increase our headways to our day base
to 12 minutes from 15, and improve service on
Saturdays from a 30-minute to a 25-minute headway.
As you'll see in my report, our on-time
performance for 2015 ended with a highlight. For the
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month of December, our on-time performance was 98.63
percent. For the year, if we remove the storm that
occurred in June, our on-time performance for the
entire year was 97.03 percent.
We also ended on a positive note in regards to
five-year trends for our ridership. For the first
time since 2011, our ridership ended the year on an
upward trend. We were able to come in 162,000 over
our 2014 ridership, a 1.6 percent increase. We were
under our budget by approximately 30,000 riders, but
if you remove the fact that we lost almost 27,000
riders on the day of the June 24th storm, we were
within budget of 3 percent.
I'd like to also highlight our stewardship for
our elevators and escalators. We ended our year at
94.8 percent availability for escalators and 98.7
percent for elevators for the year.
Also, if you look at the chart under ‘mean
distance between failures,’ we ended 2015 on a
positive trend by exceeding our goal of 4,600 miles
between failures.
That's all, Mr. Chairman.
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CHAIRMAN BOYER: Thank you. John, I would
like to say that your guys did a great job removing
that tree off the track in record time and coming up
with an alternative way to get our passengers home
safely.
But I guess I have a question. Did we then
look at the route that our train travels and see if
there are any more imminently dangerous trees? Can we
take some proactive measures, not just reactive ones,
next time?
MR. RINK: Yes, actually, just for the Board's
-- and I do have pictures, if you're interested in
seeing afterwards. This was not a tree on PATCO
property. It was actually a tree in a park in the
Borough of Haddonfield. If not for the neighbor who
happened to be walking his dog that day and heard the
tree crackling, we would not have been advised of the
situation.
We do inspections, Mr. Chairman and the Board,
twice on our track, for our track inspections and also
our management team, so we do look along the railway
for issues such as this. Also, our train operators
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are very diligent as they operate the trains. We will
have reports that they notice something on the
outskirts of our right of way, and we'll move to
address that.
CHAIRMAN BOYER: I'm sure we have a robust
plan for the snow that may or may not come. I
remember last year they had all this “The Great
Nor'easter” talk and it was a great nothing. But do
we have plans for the snow they're speaking of?
MR. RINK: Correct, Mr. Chairman. We'll be
ready for the snowstorm.
MR. HANSON: Both at PATCO and the bridges,
Mr. Auletto is prepared, as well.
MR. AULETTO: Yes, sir, we're prepared.
CHAIRMAN BOYER: Any more comments on the
report? If not, I'll entertain a motion?
COMMISSIONER DiANTONIO: So moved.
COMMISSIONER FRATTALI: Second.
CHAIRMAN BOYER: All those in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes carry.
Approval of December 9, 2015, PATCO Board
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Meeting Minutes.
COMMISSIONER FENTRESS: Move the motion.
COMMISSIONER FRATTALI: Second.
CHAIRMAN BOYER: All in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes have it.
Monthly List of Previously Approved Payments
and Monthly List of Previously Approved Purchase
Orders and Contracts Covering the Month of December
2015. I will accept a motion to receive and file the
Monthly List of Previously Approved Payments and
Monthly List of Previously Approved Purchase Orders
and Contracts Covering the Month of December 2015.
COMMISSIONER FRATTALI: So moved.
COMMISSIONER TAYLOR: Second.
CHAIRMAN BOYER: All in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes carry.
Balance Sheet and Equity Statement Dated
November 30, 2015. I'll accept a motion to receive
and file the Balance Sheet and Equity Statement Dated
November 30, 2015.
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COMMISSIONER HEPKINS: So moved.
COMMISSIONER SWEENEY: Second.
CHAIRMAN BOYER: All in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes have it.
There are no items for Unfinished Business for
the PATCO Board.
There are no items for New Business for the
PATCO Board.
I will now call for a motion to go into
Executive Session.
COMMISSIONER FENTRESS: Move the motion.
COMMISSIONER SWEENEY: Second.
CHAIRMAN BOYER: All in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Ayes have it.
Will you please have everyone leave the room
that should not be here?
(Off the record at 10:11 a.m.)
(On the record at 11:09 a.m.)
CHAIRMAN BOYER: We are now back in Open
Session. I'll take a motion for Adjournment.
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COMMISSIONER FENTRESS: Move the motion.
COMMISSIONER DiANTONIO: Second.
CHAIRMAN BOYER: All in favor?
ALL: Aye.
CHAIRMAN BOYER: All opposed? Meeting
adjourned.
(Whereupon, the meeting ended with a Motion to
adjourn both DRPA and PATCO Board meetings on
Wednesday, January 20, 2016 at 11:10 a.m.)
Respectfully Submitted,
Raymond J. SantarelliGeneral Counsel andCorporate Secretary
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C E R T I F I C A T E
This is to certify that the attached
proceedings before the Port Authority Transit
Corporation on January 20, 2016, were held as herein
appears, and that this is the original transcript
thereof for the file of the Authority.
_________________________Tom BowmanFREE STATE REPORTING, INC.
PATCO MONTHLY LIST OF
PREVIOUSLY APPROVED
MONTHLY LIST OF PAYMENTS
PATCO MONTHLY LIST OFPREVIOUSLY APPROVED
PURCHASE ORDERS & CONTRACTS
PATCO MONTHLY LIST OF PREVIOUSLY APPROVED PURCHASE ORDER CONTRACTS - JANUARY 2016
Purchase Order Number Item Resolution
(P=PATCO)
Vendor Name Item Description Net Order Value
4500000404 1 25KTHRES 100620 BILLOWS ELEC SUPPLY CO I NC ELEC EQP/SUPP-NO CBL $250.00
4500000404 2 25KTHRES 100620 BILLOWS ELEC SUPPLY CO I NC ELEC EQP/SUPP-NO CBL $1,250.00
4500000404 3 25KTHRES 100620 BILLOWS ELEC SUPPLY CO I NC ELEC EQP/SUPP-NO CBL $2,000.00
4500000404 4 25KTHRES 100620 BILLOWS ELEC SUPPLY CO I NC ELEC EQP/SUPP-NO CBL $1,500.00
4500000404 $5,000.00
4500000405 1 25KTHRES 100022 ACE PLUMBING & ELECTRICAL SUPPLIES BLDGS/GRNDS- MAINT. $110.67
4500000405 2 25KTHRES 100022 ACE PLUMBING & ELECTRICAL SUPPLIES BLDGS/GRNDS- MAINT. $106.31
4500000405 $216.98
4500000411 1 25KTHRES 100669 LINDLEY ELECTRIC SUPPLY BLDGS/GRNDS- MAINT. $1,630.15
4500000411 $1,630.15
4500000418 1 25KTHRES 100832 D.M DIRECT OFFICE SUPPLIES $136.08
4500000418 2 25KTHRES 100832 D.M DIRECT OFFICE SUPPLIES $136.08
4500000418 3 25KTHRES 100832 D.M DIRECT OFFICE SUPPLIES $118.86
4500000418 4 25KTHRES 100832 D.M DIRECT OFFICE SUPPLIES $0.01
4500000418 5 25KTHRES 100832 D.M DIRECT OFFICE SUPPLIES $0.01
4500000418 6 25KTHRES 100832 D.M DIRECT OFFICE SUPPLIES $73.20
4500000418 $464.24
4500000439 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $8,520.00
4500000439 $8,520.00
4500000440 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $8,520.00
4500000440 $8,520.00
4500000441 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $4,768.00
4500000441 $4,768.00
4500000442 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $4,768.00
4500000442 $4,768.00
4500000443 1 P-14-028 101323 SHERWOOD ELECTROMOTION INC. TRANS CAR EQUIP-ELEC $19,666.00
4500000443 $19,666.00
4500000444 1 P-14-028 101323 SHERWOOD ELECTROMOTION INC. TRANS CAR EQUIP-ELEC $19,666.00
4500000444 $19,666.00
4500000445 1 P-14-028 101323 SHERWOOD ELECTROMOTION INC. TRANS CAR EQUIP-ELEC $19,890.00
4500000445 $19,890.00
4500000447 1 P-14-028 101323 SHERWOOD ELECTROMOTION INC. TRANS CAR EQUIP-ELEC $19,666.00
4500000447 $19,666.00
4500000448 1 P-14-028 101323 SHERWOOD ELECTROMOTION INC. TRANS CAR EQUIP-ELEC $19,666.00
4500000448 $19,666.00
4500000449 1 P-14-028 101323 SHERWOOD ELECTROMOTION INC. TRANS CAR EQUIP-ELEC $19,666.00
4500000449 $19,666.00
4500000450 1 25KTHRES 100147 ECHELON FORD INC AUTO MAINT/RPR PRTS $5,000.00
4500000450 $5,000.00
4500000451 1 25KTHRES 100516 WINNER FORD AUTO MAINT/RPR PRTS $5,000.00
4500000451 $5,000.00
4500000452 1 25KTHRES 100918 HOME DEPOT HARDWARE & RELATED $15,000.00
4500000452 $15,000.00
4500000453 1 25KTHRES 100977 LOWE'S COMMERCIAL SERVICES HARDWARE & RELATED $15,000.00
4500000453 $15,000.00
4500000455 1 25KTHRES 100463 TIRE CORRAL AUTO MAINT/RPR PRTS $5,000.00
4500000455 $5,000.00
4500000458 1 25KTHRES 100762 BLAESE'S TIRE SERVICE INC. AUTO MAINT/RPR PRTS $5,000.00
4500000458 $5,000.00
4500000460 1 25KTHRES 100219 HOOVER TRUCK CENTERS AUTO/RELATED TRANSPO $5,000.00
4500000460 $5,000.00
4500000461 1 25KTHRES 100207 HARRY'S SUPPLY LLC. PLUMBING EQP & SUPP $5,000.00
4500000461 $5,000.00
4500000463 1 25KTHRES 100167 ENGINEERED HYDRAULICS, INC AUTO SHOP EQUIP. $5,000.00
4500000463 $5,000.00
4500000464 1 25KTHRES 100950 JOSEPH FAZZIO INC. HARDWARE & RELATED $5,000.00
4500000464 $5,000.00
4500000465 1 25KTHRES 100201 HADDON LOCKSMITH LOCKS/LOCKSMITH SRVS $5,000.00
4500000465 $5,000.00
4500000466 1 25KTHRES 100079 BROWN MACHINE WORKS INC PLUMBING EQP & SUPP $2,500.00
4500000466 $2,500.00
4500000467 1 25KTHRES 100808 COLONIAL ELECTRIC SUPPLY CO.,INC. ELEC EQP/SUPP-NO CBL $5,000.00
4500000467 $5,000.00
4500000468 1 25KTHRES 100111 CONROY, INC. BUILDER'S SUPPLIES $5,000.00
4500000468 $5,000.00
4500000469 1 25KTHRES 100428 SOUTH JERSEY WELDING SUPPLY CO WELDING EQP & SUPP $5,000.00
4500000469 $5,000.00
4500000470 1 25KTHRES 100512 WHARTON HARDWARE & SUPPLY HARDWARE & RELATED $5,000.00
4500000470 $5,000.00
4500000471 1 25KTHRES 100966 LAUREL LAWNMOWER SERVICE AGRICULT. REPAIR PTS $5,000.00
4500000471 $5,000.00
4500000472 1 25KTHRES 100231 INDCO INC APPLIANCES AND EQP $2,500.00
4500000472 $2,500.00
4500000474 1 25KTHRES 100884 FRANKLIN TRAILERS, INC. AUTO MAINT/RPR PRTS $5,000.00
4500000474 $5,000.00
4500000475 1 25KTHRES 101353 UNITED REFRIGERATION, INC. HVAC $5,000.00
4500000475 $5,000.00
4500000476 1 25KTHRES 100038 ALL SEASONS RENTAL & REPAIR INC MAINT/REPAIR-GEN.EQP $5,000.00
4500000476 $5,000.00
4500000477 1 25KTHRES 100200 H.A. DEHART & SON, INC. AUTO MAINT/RPR PRTS $5,000.00
4500000477 $5,000.00
4500000478 1 25KTHRES 101333 GARDEN STATE PAVING COMPANY RD&HWY EQP (ASPHALT) $5,000.00
PATCO MONTHLY LIST OF PREVIOUSLY APPROVED PURCHASE ORDER CONTRACTS - JANUARY 2016
Purchase Order Number Item Resolution
(P=PATCO)
Vendor Name Item Description Net Order Value
4500000478 $5,000.00
4500000479 1 25KTHRES 101021 NAPA AUTO PARTS - BLACKWOOD AUTO MAINT/RPR PRTS $5,000.00
4500000479 $5,000.00
4500000480 1 25KTHRES 101299 CONSOLIDATED ELECTRICAL DISTRIBUTOR ELEC EQP/SUPP-NO CBL $5,000.00
4500000480 $5,000.00
4500000481 1 25KTHRES 100647 EASTERN LIFT TRUCK CO INC AUTO MAINT/RPR PRTS $2,500.00
4500000481 $2,500.00
4500000482 1 25KTHRES 100151 ED'S RENTAL AND TOOLS INC. HARDWARE & RELATED $5,000.00
4500000482 $5,000.00
4500000483 1 25KTHRES 100620 BILLOWS ELEC SUPPLY CO I NC ELEC EQP/SUPP-NO CBL $5,000.00
4500000483 $5,000.00
4500000484 1 25KTHRES 101303 INDUSTRIAL SERVICES HARDWARE & RELATED $5,000.00
4500000484 $5,000.00
4500000485 1 25KTHRES 101302 JAMES DOORCHECK INC. HARDWARE & RELATED $2,500.00
4500000485 $2,500.00
4500000486 1 25KTHRES 101329 JB & SON'S CONCRETE PRODUCTS, INC. RD&HWY EQP (ASPHALT) $5,000.00
4500000486 $5,000.00
4500000487 1 25KTHRES 101325 JUST CERAMIC TILE FLOOR COV & INSTALL $5,000.00
4500000487 $5,000.00
4500000488 1 25KTHRES 101293 NAT ALEXANDER CO INC FIRE PROTECTION EQP $5,000.00
4500000488 $5,000.00
4500000489 1 25KTHRES 101338 NATIONAL AUTOMATED SOLUTIONS FENCING $5,000.00
4500000489 $5,000.00
4500000490 1 25KTHRES 101332 ONE CALL CONCEPTS CONSTR SRVS GENERAL $1,500.00
4500000490 $1,500.00
4500000491 1 25KTHRES 101310 PELLEGRINO CHEVROLET AUTO MAINT/RPR PRTS $5,000.00
4500000491 $5,000.00
4500000492 1 25KTHRES 101308 PERRONE DOOR CO BLDGS/GRNDS- MAINT. $2,500.00
4500000492 $2,500.00
4500000493 1 25KTHRES 100925 HUNTER TRUCK SALES & SERVICE AUTO MAINT/RPR PRTS $5,000.00
4500000493 $5,000.00
4500000495 1 25KTHRES 101319 SAR AUTOMOTIVE AUTO SHOP EQUIP. $1,000.00
4500000495 2 25KTHRES 101319 SAR AUTOMOTIVE AUTO SHOP EQUIP. $4,000.00
4500000495 $5,000.00
4500000498 1 25KTHRES 100601 V.E.RALPH & SON,INC. 1ST AID & SAFETY EQP $280.80
4500000498 2 25KTHRES 100601 V.E.RALPH & SON,INC. 1ST AID & SAFETY EQP $174.20
4500000498 3 25KTHRES 100601 V.E.RALPH & SON,INC. 1ST AID & SAFETY EQP $286.00
4500000498 4 25KTHRES 100601 V.E.RALPH & SON,INC. 1ST AID & SAFETY EQP $115.00
4500000498 5 25KTHRES 100601 V.E.RALPH & SON,INC. 1ST AID & SAFETY EQP $439.40
4500000498 6 25KTHRES 100601 V.E.RALPH & SON,INC. 1ST AID & SAFETY EQP $717.60
4500000498 $2,013.00
4500000507 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $4,768.00
4500000507 $4,768.00
4500000508 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $5,194.00
4500000508 $5,194.00
4500000509 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $4,768.00
4500000509 $4,768.00
4500000510 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $7,968.00
4500000510 $7,968.00
4500000511 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $4,478.00
4500000511 $4,478.00
4500000512 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $0.01
4500000512 $0.01
4500000513 1 25KTHRES 100677 PEIRCE-PHELPS, INC HVAC $5,000.00
4500000513 $5,000.00
4500000516 1 25KTHRES 101140 SOUTH JERSEY SHORT LOAD RMC BUILDER'S SUPPLIES $5,000.00
4500000516 $5,000.00
4500000517 1 25KTHRES 101137 SOUTH CAMDEN IRON WORKS HARDWARE & RELATED $5,000.00
4500000517 $5,000.00
4500000518 1 25KTHRES 101176 TOZOUR ENERGY SYSTEMS, INC. HVAC $5,000.00
4500000518 $5,000.00
4500000519 1 25KTHRES 101318 WEINSTEIN INDUSTRIAL PLUMBING EQP & SUPP $5,000.00
4500000519 $5,000.00
4500000520 1 25KTHRES 101239 WILLIER ELECTRIC COMPANY ELEC EQP/SUPP-NO CBL $5,000.00
4500000520 $5,000.00
4500000521 1 25KTHRES 100252 JOHNSTONE SUPPLY HVAC $5,000.00
4500000521 $5,000.00
4500000522 1 25KTHRES 100939 IRVINE FIRE & SAFETY FIRE PROTECTION EQP $2,500.00
4500000522 $2,500.00
4500000524 1 25KTHRES 100079 BROWN MACHINE WORKS INC PLUMBING EQP & SUPP $2,500.00
4500000524 $2,500.00
4500000525 1 25KTHRES 100835 DAMON K. LACEY FERT/SOIL CONDITION. $5,000.00
4500000525 $5,000.00
4500000526 1 25KTHRES 100879 FASTENAL COMPANY HARDWARE & RELATED $5,000.00
4500000526 $5,000.00
4500000527 1 25KTHRES 100648 ERIAL CONCRETE INC. MAINT/REPAIR-BLDG $5,000.00
4500000527 $5,000.00
4500000528 1 25KTHRES 100498 VOORHEES HARDWARE, INC. HARDWARE & RELATED $5,000.00
4500000528 $5,000.00
4500000529 1 25KTHRES 100098 CHERRY VALLEY TRACTOR SALES AUTO MAINT/RPR PRTS $5,000.00
4500000529 $5,000.00
4500000530 1 25KTHRES 100753 BARTON SUPPLY INC. PLUMBING EQP & SUPP $5,000.00
PATCO MONTHLY LIST OF PREVIOUSLY APPROVED PURCHASE ORDER CONTRACTS - JANUARY 2016
Purchase Order Number Item Resolution
(P=PATCO)
Vendor Name Item Description Net Order Value
4500000530 $5,000.00
4500000531 1 25KTHRES 100175 FISLER & CASSEDY INC HVAC $5,000.00
4500000531 $5,000.00
4500000532 1 25KTHRES 100900 GRAINGER ELEC EQP/SUPP-NO CBL $5,000.00
4500000532 $5,000.00
4500000533 1 25KTHRES 100908 HAMPTON INN BLDGS/GRNDS- MAINT. $1,200.00
4500000533 $1,200.00
4500000534 1 25KTHRES 100274 LAWNMOWER PARTS, INC. AGRICULT. REPAIR PTS $5,000.00
4500000534 $5,000.00
4500000535 1 25KTHRES 100613 PERFORMANCE DODGE, INC AUTO MAINT/RPR PRTS $5,000.00
4500000535 $5,000.00
4500000536 1 25KTHRES 100902 GRAYBAR ELECTRIC CO. INC. ELEC EQP/SUPP-NO CBL $5,000.00
4500000536 $5,000.00
4500000537 1 25KTHRES 100491 UNIVERSAL ELECTRONIC SUPPLY CO. ELEC EQP/SUPP-NO CBL $5,000.00
4500000537 $5,000.00
4500000538 1 25KTHRES 100291 MERCHANTVILLE OVERHEAD DOOR BUILDER'S SUPPLIES $5,000.00
4500000538 $5,000.00
4500000539 1 25KTHRES 100140 DOOR DEVICE INC BUILDER'S SUPPLIES $5,000.00
4500000539 $5,000.00
4500000540 1 25KTHRES 100949 JOHNSON & TOWERS INC MAINT/REPAIR-HVY EQP $2,500.00
4500000540 $2,500.00
4500000541 1 25KTHRES 100222 HOUPERT TRUCK SERVICE AUTO MAINT/RPR PRTS $5,000.00
4500000541 $5,000.00
4500000542 1 25KTHRES 100306 NATIONAL BATTERY CO. FIRE PROTECTION EQP $2,500.00
4500000542 $2,500.00
4500000543 1 25KTHRES 100947 JESCO MAINT/REPAIR-HVY EQP $5,000.00
4500000543 $5,000.00
4500000545 1 25KTHRES 100287 MAGNUS COMPUTERS COMP ACCESS./SUPP. $2,500.00
4500000545 $2,500.00
4500000548 1 25KTHRES 100712 EDWARD KURTH & SONS INC STEAM&HOT WTR BOILER $5,000.00
4500000548 $5,000.00
4500000550 1 25KTHRES 100796 CHICKS BLOCK CO. BUILDER'S SUPPLIES $2,500.00
4500000550 $2,500.00
4500000551 1 25KTHRES 100713 ALLIED ELECTRONICS AUTO/RELATED TRANSPO $5,000.00
4500000551 $5,000.00
4500000553 1 25KTHRES 100664 SAF-GARD SAFETY SHOE COMPANY SHOES AND BOOTS $1,025.00
4500000553 2 25KTHRES 100664 SAF-GARD SAFETY SHOE COMPANY SHOES AND BOOTS $410.00
4500000553 3 25KTHRES 100664 SAF-GARD SAFETY SHOE COMPANY SHOES AND BOOTS $615.00
4500000553 4 25KTHRES 100664 SAF-GARD SAFETY SHOE COMPANY SHOES AND BOOTS $820.00
4500000553 $2,870.00
4500000554 1 25KTHRES 100479 TRU-FIT FRAME & DOOR CORP. BLDGS/GRNDS- MAINT. $5,000.00
4500000554 $5,000.00
4500000555 1 25KTHRES 100022 ACE PLUMBING & ELECTRICAL SUPPLIES PLUMBING EQP & SUPP $5,000.00
4500000555 $5,000.00
4500000557 1 25KTHRES 100955 KENNEDY CULVERT & SUPPLY CO. PLUMBING EQP & SUPP $2,500.00
4500000557 $2,500.00
4500000558 1 25KTHRES 101367 PRISM ENGINEERING DATA PROC SRVS & SW $1,495.00
4500000558 $1,495.00
4500000560 1 25KTHRES 100911 HD SUPPLY WATERWORKS, LTD. BLDGS/GRNDS- MAINT. $2,028.00
4500000560 2 25KTHRES 100911 HD SUPPLY WATERWORKS, LTD. BLDGS/GRNDS- MAINT. $96.00
4500000560 3 25KTHRES 100911 HD SUPPLY WATERWORKS, LTD. BLDGS/GRNDS- MAINT. $264.00
4500000560 $2,388.00
4500000562 1 25KTHRES 100344 PENN JERSEY MACHINERY BUILDER'S SUPPLIES $5,000.00
4500000562 $5,000.00
4500000569 1 25KTHRES 101047 NORRIS SALES CO. INC. HARDWARE & RELATED $5,000.00
4500000569 $5,000.00
4500000574 1 25KTHRES 101331 CENTRAL JERSEY EQUIPMENT AUTO MAINT/RPR PRTS $5,000.00
4500000574 $5,000.00
4500000575 1 25KTHRES 101362 NATIONAL PAVING ROAD/GRDS/PARK AREA $5,000.00
4500000575 $5,000.00
4500000576 1 25KTHRES 101361 TRAP ROCK INDUSTRIES ROAD/GRDS/PARK AREA $5,000.00
4500000576 $5,000.00
4500000577 1 25KTHRES 101370 TAB INC. PAPER/PLAS-DISPOSE $1,800.00
4500000577 $1,800.00
4500000578 1 25KTHRES 101326 DEJANA TRUCK & UTILITY EQUIPMENT CO AUTO MAINT/RPR PRTS $5,000.00
4500000578 $5,000.00
4500000579 1 25KTHRES 100103 CL PRESSER CO HARDWARE & RELATED $5,000.00
4500000579 $5,000.00
4500000582 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $13,138.00
4500000582 $13,138.00
4500000583 1 P-14-028 100443 SWIGER COIL SYSTEMS, A WABTEC COMPA TRANS CAR EQUIP-ELEC $4,768.00
4500000583 $4,768.00
4500000593 1 25KTHRES 100501 W.B. MASON CO. INC OFFICE SUPPLIES $204.49
4500000593 2 25KTHRES 100501 W.B. MASON CO. INC OFFICE SUPPLIES $41.20
4500000593 3 25KTHRES 100501 W.B. MASON CO. INC OFFICE SUPPLIES $85.65
4500000593 $331.34
4500000601 1 25KTHRES 101369 REDY BATTERY ELEC EQP/SUPP-NO CBL $5,000.00
4500000601 $5,000.00
4500000602 1 25KTHRES 101133 SIMPLEXGRINNELL LP SEC/FIRE/EMER SRVS $600.00
4500000602 $600.00
4500000603 1 25KTHRES 101133 SIMPLEXGRINNELL LP SEC/FIRE/EMER SRVS $4,000.00
4500000603 $4,000.00
PATCO MONTHLY LIST OF PREVIOUSLY APPROVED PURCHASE ORDER CONTRACTS - JANUARY 2016
Purchase Order Number Item Resolution
(P=PATCO)
Vendor Name Item Description Net Order Value
4500000604 1 25KTHRES 101363 HALE TRAILER BRAKE & WHEEL, INC. AUTO MAINT/RPR PRTS $5,000.00
4500000604 $5,000.00
BALANCE SHEET
ASSETSDecember 31,2014 December 31, 2015
Cash (Includes $107,460 in Station Escrow Funds) $1,061,666 $955,624Investments (Note 1) 2,655,000 2,656,176Accounts Receivable 1,208,970 2,032,060Inventory at lower of cost (first-in, first-out) or market 5,584,046 5,595,482Prepaid Expenses 1,430,192 1,449,972Work Orders in Progress 1,885,433 1,554,513
$13,825,307 $14,243,827
LIABILITIES AND EQUITYLiabilities:
Accounts Payable:Trade $ 2,368,155 $1,814,643Delaware River Port Authority (Note 2) 250,852,000 256,974,000
Accrued Liabilities:Reserve for Other Post Employment Benefits (Note 4) 10,269,503 8,582,810Deferred Revenue (Note 5) 3,706,376 4,127,648Wages 756,490 483,475Payroll taxes 51,842 41,485Pension and Other 663,315 496,377Sick Leave Benefits 417,209 333,950Reserve for Unused Vacation 357,291 398,198Reserve for contingent liabilities (Note 3) 3,468,561 3,006,564
$ 272,910,742 $ 276,259,150
Equity:Advances from Delaware River Port Authority 385,338,619 409,832,182Deficit ($ 644,424,054) ($ 671,847,504)
$ 13,825,307 $ 14,243,828
December 31, 2015BALANCE SHEET
PORT AUTHORITY TRANSIT CORPORATION
(PRELIMINARY ONLY)
Year to date ended Month ended
December 31, 2015 December 31, 2015
Operating Revenues:
Passenger fares $24,920,523 $2,145,228
Passenger parking 822,356 68,832
Passenger - other 116,119 7,597
Advertising 736,499 106,090
Miscellaneous 637,501 359,920
Interest Income From Investments 0 0
$27,232,998 $2,687,667
Operating Expenses:
Maintenance of Way and Power 12,429,044 1,160,494
Maintenance of Equipment 7,405,283 724,278
Purchased Power 4,396,253 296,696
Transportation 17,642,659 1,580,140
General Insurance 1,290,294 160,695
Superintendence and General Office 5,370,915 574,822
48,534,448 4,497,125
Rent of Rapid Transit System Facilities (Note 2) 6,122,000 510,167
Other Post Employment Benefits Accrual (Note 4) 0 0
$54,656,448 $5,007,292
Net Income (loss) ( $ 27,423,450) ( $ 2,319,625)
Deficit, December 31, 2014 ($ 644,424,054)
Deficit, December 31, 2015 ($ 671,847,504)
FOR THE PERIOD INDICATED
See Notes To Financial Statements
(PRELIMINARY ONLY)
STATEMENT OF REVENUES AND EXPENSES AND DEFICIT
PORT AUTHORITY TRANSIT CORPORATION(A Wholly Owned Subsidiary Of Delaware River Port Authority)
PORT AUTHORITY TRANSIT CORPORATION(A Wholly Owned Subsidiary of the Delaware River Port Authority)
December 31, 2015
PRELIMINARY ONLY
NOTES TO FINANCIAL STATEMENTS
1. Investments:
The Corporation has set aside $2,655,000. to partially fund its liability for self-insurancewith the following limits:
(a) Totally self-insured for Voluntary Workers Compensation.
(b) Comprehensive General Liability from the first dollar to $5,000,000per occurrence.
2. Rent of transit system facilities:
All rapid transit system facilities used by the Corporation are leased from the Delaware River Port Authority,under terms of an agreement dated April 18, 1969 and amended June 3, 1974. The lease requires theCorporation to operate and maintain the Locust-Lindenwold line.
The terms of the amended agreement, which was made retroactive to January 1, 1974, and which is to continuefrom year to year, provide that the Corporation pay a minimum annual rental of $6,122,000, whichapproximates the sum of the annual interest expense to the Delaware River Port Authority for that portion ofits indebtedness attributable to the construction and equipping of the leased facilities plus the provision fordepreciation of the rapid transit facilities as recorded by the Authority. In addition, the lease requires theCorporation to pay to the Authority any net earnings from operations for the Locust-Lindenwold line less areasonable amount to be retained for working capital and operating reserves.
The rent is payable semi-annually on June 30 and December 31. The Corporation is in default of thisagreement as payments totaling $256,974,000 from January 1, 1974 through December 31, 2015 have notbeen made to the Authority.
3. Reserves for Contingent Liabilities:
Pursuant to a policy of self-insurance, the Corporation has reserved $ 856,411 for Comprehensive GeneralLiability and $ 2,150,153 for Workers' Compensation.
4. Other Post-Employment Benefits:
The Government Accounting Standards Board (GASB) has issued Statement No. 45, “Accounting andFinancial Reporting by Employers for Post-Employment Benefits Other than Pensions (OPEB),” whichaddresses the accountability and disclosure of the costs and obligations, that are associated with post-employment health care and other non-pension benefits to current and future retirees, by governmentalentities. Pursuant to this requirement, the Corporation adopted its reporting requirements during the 2007fiscal year. The OPEB accrual, in recognition of the costs and obligations associated with post-employment health care, represents an actuarial determined amount upon an unfunded assumption under a30-year amortization period at a discount rate of 5%.
5. Deferred Revenue:
Deferred revenue consists of the prepayment of fares related to the unearned values on passengers’ smartcards for unused trips.
OPERATIONS & MAINTENANCE
Refer to Operations and
Maintenance Minutes
in the DRPA Board Packet
SUMMARY STATEMENT
ITEM NO.: PATCO-16-001 SUBJECT: Approval ofTitle VI Program Submission toFederal Transit Administration
COMMITTEE: Operations & Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board approves the Title VI Program and authorizes staff tosubmit same to the Federal Transit Administration (FTA) by theApril 1, 2016, submission deadline as required by FTA Circular,4702.1B.
PURPOSE: To approve the Title VI Program and authorize its submission to theFederal Transit Administration (FTA).
BACKGROUND: FTA requires that all direct and primary grant recipients documenttheir compliance by submitting a Title VI Program to their FTAregional civil rights officer once every three years or as otherwisedirected by FTA. For all transit providers, the Title VI Program mustbe approved by the transit provider’s board of directors orappropriate governing entity or official(s) responsible for policydecisions prior to submission to FTA.
These requirements apply to all fixed route providers of publictransportation service so that no person or group of persons shall bediscriminated against with regard to the routing, scheduling, orquality of transportation service furnished as a part of the project onthe basis of race, color, or national origin. Frequency of service, ageand quality of vehicles assigned to routes, quality of stations servingdifferent routes, and location of routes may not be determined on thebasis of race, color, or national origin.
All transit providers shall set service standards and policies for eachspecific fixed route mode of service they provide. These standardsand policies must address how service is distributed across the transitsystem, and must ensure that the manner of the distribution affordsusers access to these assets.
Providers of public transportation shall also adopt system-wideservice policies to ensure service design and operations practices do
SUMMARY STATEMENT -2- Approval of Title VI ProgramO&M February 2, 2016 Submission to Federal
Transit Administration
not result in discrimination on the basis of race, color, or nationalorigin.
In September, 2014, with the support of John T. Hanson, DRPA CEOand PATCO President, and CAO Toni P. Brown, the Authorityestablished a Cross-Functional Title VI Team to prepare the Title VIProgram submission. The Cross-Functional team was led by AnnDuVall, Project Analyst in the Office of the CAO. Staff members fromthe following departments served on the team: PATCO, the Office ofthe Chief Administrative Officer, Human Resources Services, theOffice of the General Counsel, the Chief Engineer’s Office, the GrantsDepartment, Contracts Administration, and CorporateCommunications. Staff from the Print Shop also assisted the team.Regular team and team sub-committee meetings occurred over thepast year and one half resulting in the submission.
SUMMARY: Amount: N/ASource of Funds: N/ACapital Project #: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: Federal Transit Administration
PATCO-16-001Operations & Maintenance Committee: February 2, 2016
Board Date: February 17, 2016Approval of Title VI Program Submission to
Federal Transit Administration
RESOLUTION
RESOLVED: That the Board hereby approves the Title VI Program; and be itfurther;
RESOLVED: That the appropriate officers of the Port Authority TransitCorporation be and hereby are authorized to submit to the FederalTransit Administration the approved Title VI Program submissionfor PATCO; and be it further;
RESOLVED: The Chair, Vice Chair and President must approve and are herebyauthorized to approve and execute all necessary agreements,contracts, or other documents on behalf of PATCO. If suchagreements, contracts, or other documents have been approved by theChair, Vice Chair and President and if thereafter, either the Chair orVice Chair is absent or unavailable, the remaining Officer mayexecute the said document(s) on behalf of PATCO along with thePresident. If both the Chair and Vice Chair are absent orunavailable, and if it is necessary to execute the said document(s)while they are absent or unavailable, then the President shall executesuch documents on behalf of PATCO.
SUMMARY: Amount: N/ASource of Funds: N/ACapital Project #: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: Federal Transit Administration
P R E S E N TAT I O N TO C O M M I S S I O N E R S
B Y
T O N I P. B R O W N , C H I E F A D M I N I S T R AT I V E O F F I C E R
A N N D U VA L L , P R O J E C T A N A LY S T, O F F I C E O F T H E C A O
F E B R U A RY 2 , 2 0 1 6
O P E R AT I O N S & M A I N T E N A N C E C O M M I T T E E
DRPA’s
Proposed 2016 Title VI Program
for Board Approval
Title VI: The Guiding Premise
Title VI of the Civil Rights Act of
1964 prohibits discrimination on the
basis of race, color, and national
origin in programs and activities
receiving federal financial assistance.
2
Title VI: Compliance is Essential
DRPA receives federal funding for PATCO.
Title VI Compliance is required for continued funding.
If a recipient of federal assistance is found to have discriminated and voluntary compliance cannot be achieved, the federal agency providing the assistance is required to:
initiate fund termination proceedings or
refer the matter to the Department of Justice for appropriate legal action.
3
Title VI Program Requirements
As a condition of receiving federal funding, PATCO is required to submit a Title VI Program document to the FTA every three (3) years.
Title VI Programs must include a comprehensive Public Participation Plan and a Language Assistance Plan.
Our next Title VI Program must be submitted to the FTA on or before April 1, 2016, and requires prior Board Approval.
O&M Committee – February 2, 2016
Board – February 17, 2016
4
DRPA’s 2016 Title VI Program:Highlights
The DRPA’s 2016 Title VI Program builds on
the already approved 2013 Title VI Program
and features the following:
Public Participation Plan
Language Assistance Plan (LAP)
Survey Results on PATCO Customer
Demographics
5
DRPA’s 2016 Title VI Program:
Public Participation Plan(PPP)Enhancements
In July 2013, at the recommendation of the FTA,
DRPA enhanced its PPP. On August 8, 2013, the
FTA concurred with the improved PPP. This Title
VI Program contains that enhanced PPP.
Our PPP contains steps our agency proposes to
follow in advance of a future toll or fare increase.
The PPP focuses on ensuring access to PATCO
services for Limited English Proficient (LEP)
individuals.
6
Who Are Limited English Proficient
(LEP) Individuals?
LEP individuals responded to the 2010 U.S.
Census.
They indicated they speak English “less than well”
or “not at all”.
7
DRPA’s 2016 Title VI Program:
Language Assistance Plan (LAP)
We enhanced our LAP as follows:
We surveyed PATCO employees who deal with the public to determine the frequency with which LEP persons come into contact with PATCO services;
In March, 2016, we will roll out a new training program to staff who interact with the public to give them tools to assist customers with “Language Assistance Needs.”
Four (4) new “tools” to provide language assistance to our customers include:
Newly designed “I SPEAK” Language Identification Card;
Use of “Google Translate” on a smart phone;
Access to “Language Line Solutions”, a 24/7 interpretation and translation service; and
Access to bi-lingual staff members at DRPA/PATCO
8
DRPA’s 2016 Title VI Program: Survey Requirement
DRPA is required every three (3) years to survey our
customers and report the results to FTA.
The Delaware Valley Regional Planning Commission,
(DVRPC), which is the federally designated
Metropolitan Planning Organization for the Greater
Philadelphia Region, helped staff develop a survey that
would ensure we collected the Customer Demographic
Data required by the FTA.
The communication plan for the survey included:
DRPA & PATCO websites
Seat drops
Station posters
Tweets & Facebook
Press releases
9
DRPA’s 2016 Title VI Program: Survey Requirement
DVRPC advised DRPA that the FTA preferred
moving away from paper surveys.
We used hand-held tablets provided by DVRPC.
The campaign, titled, “It Takes Two”, was very
successful.
PATCO staff and Transit Ambassadors surveyed a
random number of PATCO customers.
3,340 completed surveys.
Survey results were tabulated by DVRPC and are
contained in the Title VI Program (see pp. 85-110)
to be submitted to FTA on or before April 1, 2016.
10
Proposed 2016 Title VI Program: Next Steps
Operations & Maintenance Committee approval of the
Summary Statement & Resolution that relates to the 2016 Title
VI Program, PATCO-16-xx, Approval of the Title VI Program
Submission to Federal Transit Administration.
Board approval of above SS&Res on February 17, 2016,
which would include this Power Point presentation.
Following the NJ Governor’s Veto Period, submit our program
electronically to the FTA in “TrAMS on or before April 1,
2016.
11
2016 Title VI Program
Cross-Functional Title VI Team
Toni P. Brown, C AO, Project Lead
Ann DuVall, Project Analyst, CAO Office, Project Coordinator
Kelly Forbes, Director HRS
John D. Rink, PATCO GM
Bennett Cornelius, PATCO Assistant General Manager
Kathleen Imperatore, PATCO Director, Fare Collections
Phil Spinelli, PATCO Project Manager
Karen Dougherty, PATCO Administrative Coordinator
Heather Still, PATCO Administrative Coordinator
Johanne Corker, HRS Specialist
Barbara Holcomb, Manager, Capital Grants
Kathleen Vandy, Assistant General Counsel
Howard Korsen, Manager, Contract Administration
Amy Ash, Contract Administrator
Michael Venuto, Chief Engineer
Suryakant T. Patel, Associate Engineer
Ashok Patel, Manager, Construction & Maintenance
Kyle Anderson, Director, Corporate Communications
Mike Williams, Corporate Communications
12
SUMMARY STATEMENT
ITEM NO: PATCO-16-002 SUBJECT: Vegetation Managementand Weed Control Services for DRPAand PATCO Facilities
COMMITTEE: Operations and Maintenance
COMMITTEE MEETING DATE: February 02, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes DRPA staff to enter into a three (3) yearcontract with Weeds, Inc. of Aston, PA. for Vegetation Management andWeed Control Services for DRPA and PATCO Facilities.
Amount: $182,100.00Contractor: Weeds, Inc.
Aston, PA
Other Bidders: JC Ehrlich Co., Inc. $184,563.00Reading, PAChemsearchWoolwich Twsp., N.J. No Bid (Vendor does
not provide productor service.)
PURPOSE: To provide Vegetation Management and Weed Control services for theBen Franklin Bridge, Commodore Barry Bridge, Walt Whitman Bridge,Betsy Ross Bridge and the PATCO High Speed Rail Line.
BACKGROUND: An invitation to bid was publicly advertised on December, 30, 2015 andissued to twelve (12) firms. Three (3) bids were received and publiclyopened on Thursday, January 21, 2016 at 11:00 a.m.
Weeds, Inc. has been in business since 1966 with an experienced staff oftechnicians and applicators. Weeds, Inc. is headquartered in Aston, Pawith regional offices in Pennsylvania, Ohio and Illinois.
The lowest responsive responsible bid was submitted by Weeds, Inc. inthe amount of $182,100.00. Therefore, staff recommends that thecontract be awarded to Weeds, Inc.
SUMMARY STATEMENT -2- Vegetation ManagementO&M 02/02/2016 and Weed Control Services
______________________________________________________________________________
SUMMARY: Amount: $182,100.00Source of Funds: Operating Budget - Revenue FundCapital Project #: N/AOperating Budget: $182,100.00Master Plan Status: N/AOther Fund Sources: N/ADuration of Contract: Three (3) yearsOther Parties Involved: N/A
PATCO-16-002Operations & Maintenance Committee: February 02, 2016
Board Date: February 17, 2016Vegetation Management and Weed Control
Services for DRPA and PATCO Facilities
RESOLUTION
RESOLVED: That the Board of Commissioners of the Delaware River Port Authorityauthorize DRPA staff to negotiate a three (3) year contract with Weeds,Inc. of Aston, Pennsylvania to provide Vegetation Management andWeed Control Services to all DRPA Bridges and PATCO High SpeedRail Line.
RESOLVED: The Chair, Vice Chair and the Chief Executive Officer approve and arehereby authorized to approve and execute all necessary agreements,contracts, or other documents on behalf of the DRPA. If suchagreements, contracts, or other documents have been approved by theChair, Vice Chair and Chief Executive Officer and if thereafter eitherthe Chair or Vice Chair is absent or unavailable, the remaining officermay execute the said document(s) on behalf of DRPA along with theChief Executive Officer. If both the Chair and Vice Chair are absent orunavailable, and if it is necessary to execute the said document (s) whilethey are absent or unavailable, then the Chief Executive Officer shallexecute such documents on behalf of DRPA
SUMMARY: Amount: $182,100.00Source of Funds: Operating Budget - Revenue FundCapital Project #: N/AOperating Budget: $182,100.00Master Plan Status: N/AOther Fund Sources: N/ADuration of Contract: Three (3) YearsOther Parties Involved: N/A
SUMMARY STATEMENT
ITEM NO.: PATCO-16-003 SUBJECT: Temporary Workers -Transit Ambassadors
COMMITTEE: Operations & Maintenance
COMMITTEE MEETING DATE: February 2, 2016
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board authorizes staff to negotiate a three-year contract withAccountants for You, Inc. to supply temporary workers for theposition of Transit Ambassador occasionally required by PATCO.
Amount: NTE: $1,125,000
Consultants: Accountants for You, Inc.1175 Marlkress Road, Suite 1040Cherry Hill, NJ 08054
PURPOSE: To adopt a resolution authorizing staff to negotiate a contract withAccountants for You, Inc. to supply temporary workers to fill theposition of Transit Ambassador in PATCO stations during eveninghours and special events.
BACKGROUND: Transit Ambassadors provide a recognizable, professional andcourteous presence throughout the PATCO system. They assistcustomers with navigating and understanding how to use theAutomated Fare Collection system in the PATCO stations, includinghow to purchase fare media from ticket vending machines and how touse that media in fare gates. Transit Ambassadors provide on-sitecustomer service by greeting customers and answering their questionsregarding PATCO’s schedule, train arrival times, information relatedto connections to NJ Transit and SEPTA, and information about localpoints of interest. When asked, the Transit Ambassador will escortcustomers from the station to their cars in the parking lot or along theconcourse in the Philadelphia stations.
Transit Ambassadors have become a vital part of the communicationprocess during evening and weekend shifts. Transit Ambassadorscommunicate with Center Tower (PATCO’s Control Center) asrequired reporting incidents and conditions or situations that mayneed maintenance or custodial attention, including but not limited to,graffiti, dangerous and/or unsafe conditions, and inoperable stationelevators and escalators.
SUMMARY STATEMENT -2- Temporary Workers -O&M 02/02/2016 Transit Ambassadors
Transit Ambassadors are stationed in a specific station per shift, orwhen required, roam the system, riding trains and interfacing withother Transit Ambassadors. The work hours and locations maychange or vary based on PATCO needs.
On October 7, 2015, a Request for Proposal was publicly advertisedon the DRPA web site. Two proposals were received. Proposals wereevaluated on completeness, qualifications of firm, understanding ofscope, and hourly bill rate. Staff has reviewed and evaluatedAccountants for You, Inc.’s proposal and determined it to be fair andreasonable.
It is recommended that a contract be negotiated with Accountants forYou, Inc. to supply temporary workers for Transit Ambassadors.Accountants for You, Inc. is one of the current providers of workersfor the Transit Ambassador position.
SUMMARY: Amount: Not to exceed $1,125,000Source of Funding: General FundOperating Budget: PATCO - Passenger Services Dept.Capital Project #: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: Three (3) yearsOther Parties Involved: N/A
PATCO-16-003
Operations & Maintenance: February 2, 2016
Board Date: February 17, 2016
Temporary Workers – Transit Ambassadors
RESOLUTION
RESOLVED: That the Board of Commissioners of the Port Authority Transit
Corporation authorizes staff to negotiate a contract with Accountants
for You, Inc. to supply temporary workers for the position of Transit
Ambassador, not to exceed $1,125,000.00; and be it further
RESOLVED: That the Chairman, Vice Chairman and the President must approve
and are hereby authorized to approve and execute all necessary
agreements, contracts or other documents on behalf of PATCO. If
such agreements, contracts, or other documents have been approved
by the Chairman, Vice Chairman and President and if thereafter
either the Chairman or Vice Chairman is absent or unavailable, the
remaining Officer may execute the said document(s) on half of
PATCO along with the President. If both the Chairman and Vice
Chairman are absent or unavailable, and if it is necessary to execute
the said document(s) while they are absent or unavailable, then the
President shall execute such documents on half of PATCO.
SUMMARY: Amount: Not to exceed $1,125,000Source of Funding: General FundOperating Budget: PATCO - Passenger Services Dept.Capital Project #: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: Three (3) yearsOther Parties Involved: N/A
NEW BUSINESS
SUMMARY STATEMENT
ITEM NO.: PATCO-16-004 SUBJECT: Consideration of PendingPATCO Contracts (Between $25,000and $100,000)
COMMITTEE: New Business
COMMITTEE MEETING DATE: N/A
BOARD ACTION DATE: February 17, 2016
PROPOSAL: That the Board consider authorizing staff to enter into contracts as shownon the Attachment to this Resolution.
PURPOSE: To permit staff to continue and maintain PATCO operations in a safe andorderly manner.
BACKGROUND: At the Meeting held August 18, 2010 the PATCO Commission adoptedResolution 10-046 providing that all PATCO contracts must be adopted atan open meeting of the PATCO Board. The Board proposed modificationsto that Resolution at its meeting of September 15, 2010; specifically that allcontracts between $25,000 and $100,000 be brought to the Board forapproval. The contracts are listed on the Attachment hereto with theunderstanding that the Board may be willing to consider all of thesecontracts at one time, but if any member of the Board wishes to remove anyone or more items from the list for separate consideration, each memberwill have that privilege.
SUMMARY: Amount: N/ASource of Funds: See Attached ListCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: N/A
PATCO-16-004New Business: February 17, 2016
Board Date: February 17, 2016Consideration of Pending PATCO Contracts
(Between $25,000 and $100,000)
RESOLUTION
RESOLVED: That the Board authorizes and directs that subject to approval by theChair, Vice Chair, General Counsel and the Chief Executive Officer,staff proceed to negotiate and enter into the contracts listed on theAttachment hereto.
SUMMARY: Amount: N/ASource of Funds: See Attached ListCapital Project #: N/AOperating Budget: N/AMaster Plan Status: N/AOther Fund Sources: N/ADuration of Contract: N/AOther Parties Involved: N/A
CONSIDERATION OF PENDING PATCO CONTRACTS (BETWEEN $25,000 - $100,000) – FEBRUARY 17, 2016
Item # Vendor/Contractor Description Amount Procurement Method Bids Received Bid Amounts Source of Funds
1 SimplexGrinnell
Horsham, PA
One (1) Year Service
Contract for PATCOHardening Project -
Access Control System
Service Call Coverage
and Inspections.
$58,975.00 In accordance with Commonwealth of
PA Contract #4400010438.
1. SimplexGrinnell
Horsham, PA
1. $58,975.00 General Fund
2 Grant Thornton
Philadelphia, PA
Provide assistance and
subject matter expertisefor the Authority's
Automated Fair
Collection System,
including assessment
and remediation of thePayment Card Industry
Data Security Standard
(PCI DSS), assistance
in the creation of the PCI
Self-AssessmentQuestionnaire for the
bank processor, and
cybersecurity
penetration testing.
$89,700.00 In accordance with Federal GSA
Contract #GS-35F-5461H.
1. Grant Thornton
Philadelphia, PA
1. $89,700.00 General Fund