monterey regional taxi authority - mryrta · 2016. 4. 18. · ben miller pebble beach company . ken...

Monterey Regional Taxi Authority

City of Carmel-by-the-Sea • City of Del Rey Oaks • City of Marina • City of Monterey City of Pacific Grove • City of Salinas • City of Sand City • City of Seaside Monterey

Peninsula Airport District • County of Monterey

Board of Directors Regular Meeting April 25, 2016

10:00 a.m.

MST Conference Room One Ryan Ranch Road, Monterey, CA 93940

1. CALL TO ORDER

1-1. Roll Call.

1-2. Pledge of Allegiance.

1-3. Review highlights of the agenda. (Carl Sedoryk)

2. PUBLIC COMMENTS ON MATTERS NOT ON THE AGENDA

Members of the public may address the Board on any matter related to the jurisdiction of The Monterey County Regional Taxi Authority but not on the agenda. There is a time limit of not more than three minutes for each speaker. The Board will not take action or respond immediately to any public comments presented, but may choose to follow-up at a later time, either individually, through staff, or on a subsequent agenda.

3. CONSENT AGENDA

These items will be approved by a single motion. Anyone may request that an item be discussed and considered separately.

3-1. Adopt Resolution of Appreciation 2016-01 for services rendered by

Victoria Beach. (Carl Sedoryk) (pg. 5)

3-2. Minutes of the regular meeting of January 25, 2016. (Anita Flanagan) (pg. 7)

3-3. Receive July 2015 – March 2016 Financial Statements. (Angela Dawson)

(pg. 11)

3-4. Receive update on Senior Voucher Acceptance Process. (Hunter Harvath) (pg. 15)

End of Consent Agenda

4. REPORTS & PRESENTATIONS No action is required unless specifically noted.

4-1. Receive update from RTA staff and the January – March 2016 Report

from RTA Administrator. (Hunter Harvath) (pg. 19) 5. BIDS/PROPOSALS

6. PUBLIC HEARINGS

7. ACTION ITEMS

7-1. Receive FY 2015 Annual Financial Report & Audit. (Hunter Harvath)

(pg. 29)

7-2. Adopt FY 2017 Preliminary Draft Operating Budget and refer to Finance Committee for review and recommendation. (Hunter Harvath) (pg. 43)

8. COMMENTS BY BOARD MEMBERS

9-1. Reports on meetings attended by board members at RTA expense.

(AB1234).

9-2. Board member Comments and Announcements.

9-3. Board member Referrals to TAC or future RTA agendas. 9. CORRESPONDENCE AND INFORMATION ITEMS

10. CLOSED SESSION

As permitted by Government Code §64956 et seq. of the State of California, the Board of Directors may adjourn to Closed Session to consider specific matters dealing with personnel and/or pending possible litigation and/or conferring with the Board's Meyers- Milias-Brown Act representative.

11. RETURN TO OPEN SESSION

12-1. Report on action taken during Closed Session.

12. ADJOURN

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NEXT MEETING DATE: July 25, 2016 at 10:00 a.m.

LOCATION: Monterey-Salinas Transit, 1 Ryan Ranch Rd. Monterey, CA 93940

NEXT AGENDA DEADLINE: July 12, 2015 Materials related to an item on this Agenda submitted to the Board after distribution of the agenda packet are available for public inspection at the Monterey-Salinas Transit Administration office at 1 Ryan Ranch Road, Monterey, CA during normal business hours.

Upon request, the Monterey County Regional Taxi Authority will provide written agenda materials in appropriate alternative formats, or disability-related modification or accommodation, including auxiliary aids or services, to enable individuals with disabilities to participate in public meetings. Please send a written request, including your name, mailing address, phone number and brief description of the requested materials and preferred alternative format or auxiliary aid or service at least three working days prior to the meeting. Requests should be sent to Monterey County Regional Taxi Authority/MST – c/o Clerk to the Board, 1 Ryan Ranch Road, Monterey, CA 93940 or [email protected]. Taxi-related materials and information are available on www.mryrta.org.

mailto:[email protected]

http://www.mryrta.org/

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Agenda # 3-1 April 25, 2016 Meeting

APPRECIATION FOR SERVICES RENDERED

BY VICTORIA BEACH

WHEREAS, Victoria Beach has served on the Monterey County Regional Transit

Authority from October 2012 to April of 2016; and

WHEREAS, Victoria Beach was a strong advocate for the taxicab companies, taxi drivers, and the citizens of the City of Carmel-by-the-Sea – including seniors and persons with disabilities – who depend upon safe and reliable taxi service; and

WHEREAS, Victoria Beach was active in the development of RTA policies, rules and

regulations; and WHEREAS, Victoria Beach provided valuable review and feedback during the

development of Ordinance 2016-01, which requires taxicab operators to accept credit card transactions; and

WHEREAS, Victoria Beach has made a substantial and lasting contribution to the

improvement of taxicab service throughout Monterey County;

THEREFORE, BE IT RESOLVED that the Board of Directors gives Victoria Beach its sincerest thanks and best wishes as she leaves the Monterey County Regional Transit Authority Board of Directors.

THE BOARD OF DIRECTORS OF MONTEREY-SALINAS TRANSIT

PASSED AND ADOPTED RESOLUTION 2016-01 this 25th day of April, 2016. _______________________ _______________________

Mary Ann Leffel Carl G. Sedoryk Chairperson Secretary

RTA Agenda | April 25, 2016 |


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Monterey County Regional Taxi Authority Monterey-Salinas Transit, 1 Ryan Ranch Rd.

Monterey, CA 93940

MINUTES January 25, 2016

10:00 a.m. Present: Fernando Armenta County of Monterey

Tony Barrera City of Salinas Victoria Beach City of Carmel-by-the-Sea Ken Cuneo City of Pacific Grove Libby Downey City of Monterey Mary Ann Leffel Monterey Peninsula Airport District Pat Lintell City of Del Rey Oaks (alt.) Frank O’Connell City of Marina David Pendergrass City of Sand City

Staff: Carl Sedoryk General Manager/CEO

Hunter Harvath Asst. GM of Finance & Administration Mike Hernandez Asst. GM/COO Deanna Smith Executive Assistant/Clerk to the Board David Laredo De Lay & Laredo Angela Dawson Accountant

Sally Cota Customer Service Representative Public: Kathi Krystal Associated Taxi Ben Miller Pebble Beach Company

Ken Griggs Monterey Regional Airport Michael LaPier Monterey Regional Airport Michael Cardinelli Salinas Yellow Cab Tom Mancini TAC Senior Representative John Cardinelli Salinas Yellow Cab Alec Stefan Salinas Yellow Cab

1. CALL TO ORDER

Chairperson Leffel called the meeting to order at 10:02 a.m. Roll call was taken

and the Pledge of Allegiance followed.


1-1. Roll Call. 1-2. Pledge of Allegiance. 1-3. Review highlights of the agenda.

Mr. Sedoryk reviewed the highlights of the agenda.

2. PUBLIC COMMENTS ON MATTERS NOT ON THE AGENDA

No public comment.

3. CONSENT AGENDA

3-1. Minutes of the regular meeting of October 26, 2015.

3-2. Receive October – December 2015 Financial Statements.

3-3. Receive update on RTA procurement of General Liability and Directors and Officers insurance.

Director Pendergrass made a motion to approve the Consent Agenda. Director Armenta seconded the motion, which was approved unanimously.

No public comment.

4. REPORTS & PRESENTATIONS

4-1. Receive update from RTA staff and the July 2015 – December 2015 Report from RTA Administrator.

Chairperson Leffel indicated that training is needed regarding the Measure Q program and senior voucher issues, and Mr. Harvath noted that outreach and training is forthcoming.

Director Barrera noted that Salinas Yellow Cab is implementing a voucher program in response to Measure Q.

Board members discussed the senior voucher issue regarding the lack of communication between the seniors and taxicabs, and they agreed that outreach is necessary.

Public Comment:

Tom Mancini suggested providing educational items to senior program users and local jurisdictions.


Kathi Krystal stated that seniors are not informing taxi dispatch when they are a voucher customer, and sometimes seniors call non-participating taxis, which will not accept vouchers. Ms. Krystal also provided comment regarding the permit revocation process.

Close public comment.

Director Beach requested that the senior voucher issues be discussed soon.

5. BIDS/PROPOSALS

6. PUBLIC HEARINGS

6-1. Hold public hearing to consider revocation of taxicab dispatching company permit for MC & Sons, LLC, d/b/a DGTC Taxi.

Mr. Harvath stated that this company was approved for a permit by this board at its July 28, 2014, meeting. However, DGTC Taxi has not commenced operations, nor have permits been submitted to the Monterey Police Department. In addition, dues and payments have not been received from this company, and no comment cards have been received regarding DGTC Taxi.

Chairperson Leffel opened the public hearing. There was no public comment received and Chairperson Leffel closed the public hearing. Director Armenta made a motion to revoke the permit of MC & SONS, LLC d/b/a DGTC TAXI to provide taxi services in the Monterey County Regional Taxi Authority (RTA) jurisdictions and approve a revocation of RTA permit of MC & SONS, LLC as a taxi dispatching company for non-compliance with the RTA Regulations. Director Pacheco seconded the motion, and the motion passed unanimously.

7. UNFINISHED BUSINESS

8. NEW BUSINESS

9. COMMENTS BY BOARD MEMBERS

9-1. Reports on meetings attended by board members at RTA expense. (AB1234).

9-2. Board member Comments and Announcements.

Director Barrera noted that MST will receive a special award at the next Salinas City Council meeting for its outstanding contribution to the City.

9-3. Board member Referrals to TAC or future RTA agendas.

Director Beach moved to direct staff to place the senior voucher acceptance process and communication issues on the agenda for the April 25,


2016, meeting. Director Cuneo seconded the motion, which was passed unanimously.

10. CORRESPONDENCE & INFORMATION ITEMS

11. CLOSED SESSION

12. RETURN TO OPEN SESSION

12-1. Report on action taken during Closed Session.

13. ADJOURN

Director Barrera made a motion to adjourn the meeting and Director Downey seconded the motion, which was passed unanimously.

There being no further business, Chairperson adjourned the meeting at 9:52 a.m.

Prepared by: ______________________

Anita Flanagan, Deputy Secretary



To: Board of Directors From: H. Harvath, Deputy Treasurer Subject: Financial Report: July 2015 – March 2016 RECOMMENDATION: Receive and accept the quarterly financial report of the Monterey County Regional Taxi Authority. DISCUSSION: The financial report for Quarters 1 through 3 of FY 2016 of the Monterey County Regional Taxi Authority (RTA) is attached for your review.


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To: Board of Directors From: Hunter Harvath, AICP, Deputy Treasurer Subject: Senior Voucher Acceptance Process RECOMMENDATION: Receive update on Senior Voucher Acceptance Process FISCAL IMPACT: None POLICY IMPLICATIONS: At the January 25, 2016, meeting of your Board, Director Victoria Beach representing Carmel-by-the-Sea requested that senior taxi voucher issues be agendized at a forthcoming Board meeting. DISCUSSION: At the January 25, 2016, meeting of your Board, Chair Leffel indicated that training was needed regarding how the senior voucher program, now funded by MST’s Measure Q sales tax revenues, is utilized. Other Boardmembers discussed lack of communication issues between seniors and the taxicab providers. In response to these remarks, as well as to input from the public during public comment, Director Beach requested that this matter be agendized on a future Board meeting agenda. In that regard, this memo serves as an update on progress made on the senior voucher program. TACT Training MST staff is working on the development of a specialized training program that would be offered free of charge to local taxi drivers who wish to participate in the RIDES and senior taxi voucher programs. Dubbed “TACT” (Taxi ADA Certification Training), the training program will be conducted in two parts; (1) an online video course provided by the Taxi, Limousine and Paratransit Association™ (TLPA), and (2) a half-day classroom session with TACT instructors. The online training will cover serving people with disabilities, safety, and building repeat business through good customer service.


Five designated TLPA video courses will be mandatory, and four more will be optional. The mandatory courses titles include:

1. Professional Service Delivery 2. Passenger Relations and Effective Communications Skills 3. Basic Passenger Rights and Driver Service Responsibilities 4. Driver Safety and Health 5. Defensive Driving

The classroom training will emphasize how to provide quality and respectful service to seniors and people with disabilities, accept taxi vouchers, properly serve RIDES customers, and comply with ADA mandates for taxi operators as well as FTA requirements which extend to MST contractors and subcontractors. Staff anticipates that the TACT program will begin offering training session to taxi drivers by the end of this fiscal year.

Senior Taxi Voucher Usage Analysis Staff is currently analyzing the rates of usage of senior taxi vouchers in the various jurisdictions that participate in this program. Initial results of this analysis indicate that, even though some jurisdictions have run out of taxi vouchers for seniors, only approximately 70% of them have been used. As such, it appears that some seniors are picking up the vouchers, but not using them.

It has been noted that, when the cities managed their now discontinued senior taxi “scrip” programs, which predated the RTA, reports of “hoarding” occurred, as some participants would save up the scrip in case they needed it at some point in the future – which may or may not ever occur. Staff suspects that a similar situation is happening with the current MST senior taxi voucher program, even though the taxi vouchers are stamped with an expiration date of June 30, 2016 – the end of this fiscal year. In that regard, staff has been in contact with two of the largest users of vouchers – the cities of Monterey and Seaside – as to exploring possible solutions to this usage situation for implementation next fiscal year. Once those solutions are developed, new informational materials will be distributed to seniors who use taxi vouchers in the various RTA jurisdictions. Included in this information will be advice and procedures for improved communications between voucher users and taxi providers.

Senior Taxi Voucher Request for Qualifications Staff is working on a new request for qualifications (RFQ) to once again give all RTA taxi dispatching companies the opportunity to participate in the senior taxi voucher program. As it has been several years since the original RFQ was issued to kick off the voucher program, there may be other companies that are now interested in offering this service, which would give customers a greater variety of taxi providers from which to choose. There is no cost for a taxi dispatching company to participate in the senior taxi voucher program, nor are there a limited number of available slots to compete for. Rather, this RFQ is open to all who are qualified to provide this service. In particular,


one of the requirements of the new RFQ will be participation in the aforementioned TACT training program. Wheelchair Accessible Vehicle Request for Proposals In tandem with the voucher RFQ, staff will also be releasing a Request for Proposals (RFP) for leasing wheelchair accessible vehicles from MST. Over the last months, several of the wheelchair accessible vehicles purchased by MST and leased to local taxicab companies have been turned back in to MST for various reasons. MST desires to get these vehicles back out on the road and providing service to the community. As such, through this RFP staff will be seeking interest among local companies to enter into low-cost leases with MST for these vehicles. Once these vehicles have been leased out, seniors will have more provider options with which to utilize their taxi vouchers.


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To: Board of Directors From: H. Harvath, Deputy Treasurer Subject: RTA Administrator Report, January - March 2016 RECOMMENDATION: Receive and accept the RTA Administrator Report for the months of January - March 2016.

DISCUSSION: The current RTA Administrator Report for the Monterey County Regional Taxi Authority (RTA) is attached for your review. ATTACHMENT 1: RTA Administrator Report ATTACHMENT 2: RTA Administrator Incident Detail


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July Aug Sept Oct Nov Dec Jan Feb March FY 2016 FY 2015 FY 2014 FY 2013

2015 2015 2015 2015 2015 2015 2016 2016 2016 YTD Total Total Total

New Company Permits 0 0 0 0 0 0 0 0 0 0 0 0 0

New Driver Permits 0 1 1 0 1 0 0 1 1 4 17 17 64

Driver Renewals 10 7 13 8 12 4 14 13 13 81 154 138 134

Driver Transfers 3 0 1 1 0 0 1 0 1 6 7 7 n/a

Vehicle Permits 18 6 11 15 12 11 3 16 5 92 152 153 227

Incidents Logged 1 1 5 2 2 2 0 0 0 13 26 34 39

Appointments 41 16 26 33 31 14 23 13 21 197 424 525 786

Random Inspections 2 3 0 0 0 3 2 0 0 10 39 4 39

Driver Permit Suspension 0 0 0 0 0 0 0 0 0 0 0 1 1

Driver Permit Denial 0 1 0 0 1 0 1 1 1 5 3 0 13

Driver Permit Revocation 0 0 1 0 0 0 0 0 0 1 0 0 0

Appeals Hearing 0 0 0 0 0 0 0 0 0 0 1 1 6

Administrative Hearing 0 0 0 1 0 0 1 0 0 2 2 0 6

Administrative Action 0 0 0 1 0 0 0 0 0 1 1 0 6

Customer Comment Card 23 8 1 0 0 0 0 0 0 32 26 n/a n/a

133

136 Permitted Taxis as of March 30, 2016

142 Permitted Drivers as of March 30, 2016

FY 2016 RTA Administrator Report

July 2015 - March 2016

173 171

149

160

154158

160

152 151 154157 161

136

177

171

151

159

158164

159147 151 149

146 151

142

100

110

120

130

140

150

160

170

180

190

200

210

220

230

240

250

Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16

Permitted Drivers and Taxis by Month

Permitted Taxi Cabs Permitted Drivers


ATTACHMENT 1

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ATTACHMENT 2

Monterey County Regional Taxi Authority

INCIDENT LOG - FY 2016

March 2016

Incident 1: On March 23, 2016, an MST staff person in Monterey witnessed a vehicle that was painted yellow with an expired RTA sticker (dated October 2015), but there were no decals or lettering on the outside of the vehicle. A driver permit and a taximeter were displayed on the inside.

Incident Update: On March 30, 2016, RTA staff forwarded these pictures to MPD with a request to be on the lookout for this vehicle and requested that, if a citation is given, a copy is sent to the RTA so that additional administrative fines can be assessed on this driver.


February 2016

Incident 1: Yellow Cab reports one of their former drivers, Jesus Roman, is no longer employed with them, but has not turned in his vehicle overhead light and meter. He is still picking up fares in Salinas as Yellow Cab. The original taxi number is no longer on the vehicle. The vehicle’s license plate is 8J96516.

Incident Update – RTA staff has informed the SPD of this violation and requested that they be on the lookout for this vehicle. RTA staff has recently requested an update from SPD and is awaiting a response.

January 2016

Incident 1: On January 11, 2016, multiple drivers complained that Uber drivers are flagging individuals on Alvarado St.

Incident Update – RTA staff informed the MPD of this violation, and no related incidents have been reported by patrol.

December 2015

Incident 1: On December 30, 2015, a Salinas Yellow Cab employee said that there are two Salinas Yellow Cabs, #4 and #8, driving around Salinas and Monterey with expired RTA stickers.

Incident Update – RTA staff informed the Salinas PD of this potential violation. RTA staff has recently requested an update from SPD and is awaiting a response.

November 2015

Incident 1: On November 4, 2015, a Salinas Yellow Cab employee said that currently there is a Salinas Yellow Cab driving around Salinas without an RTA Sticker. The vehicle’s license plate is 60815R1, CAB #4. The cab usually can be found at the Natividad Hospital in the mornings around 9 am.

Incident Update – RTA staff informed the Salinas PD of this potential violation. RTA staff has recently requested an update from SPD and is awaiting a response.

Incident 2: On November 16, 2015, passenger was picked up at her home in Seaside by “Central Coast Yellow Cab #16” and was driven to Forest Hill in Pacific Grove. The meter read $21 at the end of her trip. The passenger was charged for the full price of the trip in addition to her senior voucher, which was obtained from the City of Seaside. She should have been charged a total of


$7 (the $3 voucher co-pay plus $4 to cover the difference between the $17 maximum allowable trip cost and the $21 meter reading). The passenger requested a follow up.

Incident Update – RTA staff initiated the investigation of this complaint and found that the company in questions was in fact Salinas Yellow Cab, not “Central Coast Yellow Cab” as indicated by the customer service report. In that regard, Salinas Yellow Cab was contacted via e-mail on 11/23/15, and again by phone on both 12/7/15 and 12/10/15. Michael Cardinalli responded on 12/10/15 and said the taxi in question was not #16 but was #61. The driver of this cab is a 10 year veteran, and understands how the program works. The driver maintains that Ms. Escalante was charged $7.00 ($3.00 co-pay plus $4.00) and a Senior Taxi Voucher for the $21.00 trip. The passenger was contacted on 12/10/15 and again re-iterated that Ms. Escalante was charged $21.00 and a voucher. Michael Cardinalli has agreed to cut Ms. Escalante a check for $21.00 because she is a long-time customer and they appreciate her business.

October 2015

Incident 1: On October 8, a Salinas Yellow Cab employee said that there is a Central Coast van driving around town without an RTA sticker on the back of the vehicle. The number of the van is either 310 or 301.

Incident Update – This information was forwarded to Monterey Police Department for clarification and investigation. MPD responded that a permit was issued to the van in error as the van was not painted the appropriate color for Central Coast vehicles. MPD staff would be taking steps to rectify the situation and reported that as of October 28th, the permit sticker was removed due to the color scheme compliance issue.

Incident 2: On October 8, a Salinas Yellow Cab employee said that he saw Duane Gida, owner of Central Coast Cab, driving a taxi van around town. The employee was uncertain whether or not Mr. Gida was operating a taxi service using the van.

Incident Update – While Mr. Guida’s RTA driver permit has been revoked, he still maintains a valid RTA company owner permit. As such, he is still permitted to drive around in a marked Central Coast vehicle to oversee the operations of his taxi dispatching company business. However, he cannot pick up passengers and operate as a taxi driver in service.

September 2015

Incident 1: On September 1, a Monterey Police Officer, while on patrol, spotted Salinas Yellow cab #75 with an expired permit of August 31, 2015. The cab driver was driving all over the roadway as if he was under the influence of alcohol and drugs.


Incident Update – The driver was pulled over and was not DUI, but was on his mobile dispatch device. The Monterey Police Officer gave him a verbal warning. The officer also advised the taxi driver not to work any longer because of his expiration or else he will be cited.

Incident 2: On September 4, a complaint was submitted by an individual stating that on September 3, at approximately 5:11 p.m., a Marina taxi, travelling at a high rate of speed, crossed over the center divider to illegally pass another vehicle. The individual was stationary awaiting traffic to clear to make a left hand turn onto Portola from Reservation Rd. The taxi was heading straight toward the driver at a high rate of speed, and the individual flashed his headlights and “laid on” the horn. The taxi driver returned to his lane, laid on his horn, and flipped off the individual. The taxi was going so fast the individual could not see the taxi number. It was a white Marina Cab.

Incident Update – RTA staff sent Marina Taxi a certified letter informing them of the need to obtain permits from both the RTA and City of Marina. Staff will follow up via phone call to ensure they become fully compliant. Staff also alerted the Marina City Manager about the complaint, which he forwarded to Marina PD. If Marina Taxi does not obtain company, taxi, and driver permits within two weeks after phone call, the RTA will take enforcement measures. Subsequently, staff has met with the owners of Marina Taxi, who have also met with the Marina representative on the RTA Board of Directors in order to find a way to come into compliance with RTA regulations. Staff continues to work with Marina Taxi owners in their attempts to secure driver, vehicle and company permits.

Incident 3: On September 11, Kathi Krystal of Associated Taxi reported a verbal complaint that a gray van, license number unknown and possessing a taxi dome light, is operating as a taxi. No other signage is displayed on the van except a phone number on back. Both Robert Buswell, owner of Associated taxi, and Ms. Krystal have seen the van. The van seems to be operating late in the afternoon on and nights on weeknights.

Incident Update – Staff has forwarded this information to Monterey Police Department so that they can be on the lookout for this vehicle.

Incident 4: On September 30, RTA staff received an email complaint asking why those who call to request a taxi using a senior taxi voucher are required to inform the dispatcher that they intend to use a voucher. The rider stated this seems to put them at the bottom of the list. The rider detailed having to call three times to request a cab for a senior voucher ride, each time being told the cab would arrive in ten to fifteen minutes. The cab never arrived, and only after the rider became angry did the dispatcher send a cab, which then arrived in 4 minutes.

Incident Update – RTA staff has followed up on the matter and is waiting on a response from Salinas Yellow Cab. Staff informed the rider that customers are only required to inform the cab driver they are using a senior voucher; they are not required to inform the dispatcher.


Incident 5: A Salinas Yellow Cab driver complained that Uber drivers are picking up passenger from the Airport without authorization. Uber vehicle license plate # 7LPM854.

Incident Update – As of October 1, 2015, Uber drivers are now permitted to pick up at the Monterey Regional Airport under an official contractual arrangement between Uber and the Airport.

August 2015

Incident 1: A Taxi Cab driver is complaining about a Salinas Yellow Cab driver (cab #53) driving without an MCRTA sticker on the back. He also mentioned that Orange cab #4 is driving without a sticker. The vehicle plate # is 60815R1.

Incident Update – Hunter Harvath notified the owners of Salinas Yellow Cab and requested information on whether this cab was currently in their service. He was told that the driver had moved to Uber. As no records on Orange Cab #4 can be found in the vehicle roster, RTA staff has sent the information about Orange Cab #4 to Salinas Police Department and is working with Monterey Police Department to identify the owner of this vehicle through the license plate number. Once identified, staff will send a certified letter to the owner of the vehicle and the owner of Orange Cab informing them of the potential fines for operating a taxi vehicle without a permit.

Incident Update – Hunter Harvath attempted to investigate Orange Cab #4, but could find no current records of the cab. Staff did trace records back to 2013 and found Orange Cab #4 with a different license plate number permitted by a driver named Ricardo Fernandez Zamora, which has expired. Staff sent a letter to the owners of Orange Cab asking them to make sure the vehicle is permitted to avoid fines, or to request that Mr. Zamora remove the RTA sticker from the vehicle.

July 2015

Incident 1: On July 27, the Monterey Police Department informed the RTA that a Salinas Yellow Cab #82 was operating as an unlicensed taxi cab company. The vehicle was also observed with an expired vehicle tag.

Incident Update – The incident was corroborated by the owner of Salinas Yellow Cab, who confirmed the driver had previously operated cab #82 while in their employ. RTA staff sent driver Gerald Locke a letter informing him of his violations of RTA regulation and administrative fines the RTA was authorized to levy for the violations. The letter confirmed fines in the amount of $2,940 for three violations, and was told to cease operations immediately. Staff has since spoken to Mr. Locke, who assured that he was not operating as a taxi. Staff instructed him to remove the expired RTA sticker from the back windshield as well as the #82 from the exterior of


the vehicle to avoid any confusion. In addition, Mr. Locke was informed that the Monterey County Sheriff’s Department has been alerted to be on the lookout for his vehicle in Carmel Valley to observe whether he is picking up passengers and operating as an illegal taxicab. Unless there is some direct observation of illegal activity by public safety officers, the fine will not be collected.



To: Board of Directors From: Hunter Harvath, Deputy Treasurer Subject: Fiscal Year 2015 Audit RECOMMENDATION:

Receive Fiscal Year 2015 Audit for the Monterey County Regional Taxi Authority.

DISCUSSION: To provide transparency for the general public as well as for local, state, and federal stakeholders, it is good practice for governmental agencies to hire an independent accounting firm to attest to the state of the agency’s finances.

Article VII. Board Responsibilities, Section c., of the Monterey County Regional Taxi Authority (RTA) Bylaws, states:

“The Board shall… cause a post audit of the financial transactions and records of the Authority to be made at least annually by a certified public accountant.”

In that regard, the Fiscal Year 2015 audit for the Monterey County Regional Taxi

Authority (RTA), prepared by Vavrinek, Trine, Day & Co., LLP, is attached for your review and will be made available to the public on the RTA website.

A highlight of the audit is that the agency’s net position improved by $22,511

from FY 14 to FY 15 – an increase of 92%, with revenues exceeding expenses for the year. It should be noted, however, that revenues from taxi dispatching companies dropped by 14%, from $73,225 in FY 2014 to $63,024 in FY 2015. This reduction in revenue can in large part be attributed to the entry of Uber into the Monterey County marketplace. Still, even with the reduction in revenue, staff was successful in keeping expenses below what was budgeted by over $5,000 – a positive variance of 12%. ATTACHMENT: FY 2015 MCRTA Annual Financial Report & Audit


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MONTEREY COUNTY REGIONAL TAXI AUTHORITY

ANNUAL FINANCIAL REPORT

FOR THE YEARS ENDED

JUNE 30, 2015 AND JUNE 30, 2014


ATTACHMENT 1


TABLE OF CONTENTS

JUNE 30, 2015 AND JUNE 30, 2014

Pages

INDEPENDENT AUDITOR’S REPORT 1

MANAGEMENT’S DISCUSSION AND ANALYSIS 3

FINANCIAL STATEMENTS

Statement of Net Position 5

Statement of Revenues, Expenses and Changes in Net Position 6

Statement of Cash Flows 7

NOTES TO FINANCIAL STATEMENTS 8


FINANCIAL SECTION


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1

260 Sheridan Avenue, Suite 440, Palo Alto, CA 94306 Tel: 650.462.0400 Fax: 650.462.0500 www.vtdcpa.com

F R E S N O L A G U N A P A L O A L T O P L E A S A N T O N S A C R A M E N T O R I V E R S I D E R A N C H O C U C A M O N G A

INDEPENDENT AUDITOR’S REPORT

Governing Board

Monterey County Regional Taxi Authority

Monterey, California

Report on the Financial Statements

We have audited the accompanying basic financial statements of the Monterey County Regional Taxi

Authority (Authority), as of and for the years ended June 30, 2015 and June 30, 2014, and the related notes

to the financial statements, which collectively comprise the Authority’s basic financial statements as listed

in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America; this includes the

design, implementation, and maintenance of internal control relevant to the preparation and fair

presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted

our audit in accordance with auditing standards generally accepted in the United States of America. Those

standards require that we plan and perform the audit to obtain reasonable assurance about whether the

financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial statements. The procedures selected depend on the auditor's judgment, including the assessment

of the risks of material misstatement of the financial statements, whether due to fraud or error. In making

those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair

presentation of the financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal

control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of

accounting policies used and the reasonableness of significant accounting estimates made by management,

as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the

financial position of the Authority as of June 30, 2015 and June 30, 2014, and the changes in financial

position and cash flows thereof for the years then ended in accordance with accounting principles generally

accepted in the United States of America.


2

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s

discussion and analysis, as listed in the table of contents, be presented to supplement the basic financial

statements. Such information, although not a part of the basic financial statements, is required by the

Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for

placing the basic financial statements in an appropriate operational, economic, or historical context. We have

applied certain limited procedures to the required supplementary information in accordance with auditing

standards generally accepted in the United States of America, which consisted of inquiries of management

about the methods of preparing the information and comparing the information for consistency with

management's response to our inquiries, the basic financial statements, and other knowledge we obtained

during our audit of the basic financial statements. We do not express an opinion or provide any assurance on

the information because the limited procedures do not provide us with sufficient evidence to express an

opinion or provide any assurance.

Palo Alto, California

April 7, 2016



MANAGEMENT’S DISCUSSION AND ANALYSIS

JUNE 30, 2015 AND JUNE 30, 2014

3

The following narrative provides an overview and analysis of the financial activities of the Monterey County

Regional Taxi Authority (the Authority) for the years ended in June 30, 2015, respectively. It is provided in order

to enhance the information in the financial audit and should be reviewed with the audit report.

Agency Profile

The Authority was formed on August 9, 2010 as a Joint Powers Authority (JPA). The members of the JPA are

currently the City of Carmel-by-the-Sea, City of Del Rey Oaks, City of Monterey, City of Pacific Grove, City of

Salinas, City of Sand City, City of Seaside, Monterey Peninsula Airport District and County of Monterey. The

Authority was formed to provide services of providing taxi permits. Monterey-Salinas Transit (MST) provides

administrative, licensing and inspection services to the Authority. The Authority is governed by a nine-person

board comprised of one elected official from each member jurisdiction. MST contracts with the City of Monterey

Police Department to provide services related to taxi driver permitting and taxi vehicle inspections.

Financial Highlights

Initial startup costs for the Authority totaling $15,000 were provided by the original 8 member agencies upon its

inception at the beginning of FY 2011. An additional $1,875 was provided by the County of Monterey when it

joined the RTA in February of 2011. Monterey Salinas Transit (MST) provides administrative services for the

Authority. During the course of 2015 and 2014, MST paid for the operating expenses of the Authority in the

amount of $40,513 and $30,701, respectively. The balance of the Due-To-MST decreased to $34,275 in 2015

from $178,419 in 2014. In order to fully retire the Due-To-MST balance, the member agencies voted in April 2013

to assess themselves additional funds in the amount of $108,505 to be collected in fiscal year 2014. These start-up

fees would subsequently be reimbursed to member agencies through future permit revenues. The assets of the

Authority consist of cash in banks which decreased by $102,719 from 2014 to 2015. This reduction in assets

represents primarily the reimbursement of startup costs from FY 2011 through FY 2014, which were advanced by

MST to the Authority.

Economic Factors and the Next Year’s Budget

After two years of negative income the Authority is now a self-sustaining agency in which revenues have exceeded

expenses in FY 2013, FY 2014 and FY 2015. In FY 2012, the Authority paid extraordinary legal and other

administrative costs that have not recurred in subsequent years, which resulted in expenses exceeding revenues by

$49,713. However, in FY 2013 operating revenues exceeded expenses by $4,686, demonstrating that the

Authority can be self sustaining when normal expenditures and revenues occur. In FY 2014, the Authority’s net

position increased by $48,339, and, for the first time since its inception in the beginning of FY 2011, assets

exceeded liabilities. In FY 2015, the authority demonstrated its further financial stability, which enabled the Board

of Directors to vote at its April 27, 2015 meeting to repay all liabilities due to Monterey-Salinas Transit from FY

2011 through FY 2014. With that completed, it is expected that a payment plan for those member jurisdictions

seeking reimbursement for start-up fees would be proposed to the Board of Directors in FY 2016 as part of the FY

2017 budget process.



MANAGEMENT’S DISCUSSION AND ANALYSIS

JUNE 30, 2015 AND JUNE 30, 2014

4

Contacting the Monterey County Regional Taxi Authority Financial Management

This financial report is designefd to provide JPA’s customers, stakeholders and other interested parties with an

overview of JPA's financial operations and financial condition. Should the reader have questions regarding the

information included in this report or wish to request additional financial information, please contact the Assistant

General Manager for Finance and Administration at One Ryan Ranch Road, Monterey, California 93940-5795.



STATEMENT OF NET POSITION

JUNE 30, 2015 AND JUNE 30, 2014

See accompanying notes to the financial statement.

5

2015 2014

ASSETS

Cash in banks 65,088$ 167,807$

Accounts Receivable 10,815 30,354

Prepaid items 5,450 4,825

Total Assets 81,353 202,986

LIABILITIES

Due to Monterey-Salinas Transit 34,275 178,419

NET POSITION - UNRESTRICTED 47,078$ 24,567$



STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION

FOR THE YEARS ENDED JUNE 30, 2015 AND JUNE 30, 2014


6

2015 2014

OPERATING REVENUES

Taxi permit revenue 63,024$ 73,225$

OPERATING EXPENSES

Salaries and benefits 5,140 3,611

Contracted services 5,876 5,829

General expenses 29,497 21,261

Total Operating Expenses 40,513 30,701

OPERATING INCOME 22,511 42,524

NON-OPERATING REVENUES

Member contributions - 5,815

Total Non-Operating Revenues - 5,815

INCREASE IN NET POSITION 22,511 48,339

NET POSITION, BEGINNING OF YEAR 24,567 (23,772)

NET POSITION, END OF YEAR 47,078$ 24,567$



STATEMENT OF CASH FLOWS



7

2015 2014

CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from taxi permits 59,070$ 73,225$

Cash paid to MST for expense reimbursement (178,420) (31,438)

Net Cash Provided by (Used for) Operating Activities (119,350) 41,787

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES

Member contributions 16,631 5,815

Net Cash Provided by Non-Capital Financing Activities 16,631 5,815

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (102,719) 47,602

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 167,807 120,205

CASH AND CASH EQUIVALENTS, END OF YEAR 65,088$ 167,807$

RECONCILIATION OF OPERATING NET INCOME (LOSS) TO

NET CASH PROVIDED BY OPERATING ACTIVITIES

Operating income (loss) 22,511$ 42,524$

Adjustments to reconcile operating net income to net

cash provided by operating activities:

(Increase) decrease in due to accounts receivable 2,908 (30,354)

(Increase) decrease in due to prepaid items (625) (4,825)

Increase (decrease) in due to MST (144,144) 34,442

NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES (119,350)$ 41,787$



NOTES TO THE FINANCIAL STATEMENTS


8

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Monterey Regional Taxi Authority (“the Authority”) conform to accounting

principles generally accepted in the United States of America as prescribed by the Governmental Accounting

Standards Board (GASB). The following is a summary of the more significant accounting policies:

Description of the Organization

The Authority was formed on August 9, 2010 as a Joint Powers Authority (JPA). The members of the JPA are

currently the City of Carmel-by-the-Sea, City of Del Rey Oaks, City of Monterey, City of Pacific Grove, City of

Salinas, City of Sand City, City of Seaside, Monterey Peninsula Airport District and County of Monterey. The

Authority was formed to provide services of providing taxi permits. Monterey-Salinas Transit (MST) provides

administrative, licensing and inspection services to the Authority. The Authority is governed by a nine-person

board comprised of one elected official from each member jurisdiction. MST contracts with the City of Monterey

Police Department to provide services related to taxi driver permitting and taxi vehicle inspections.

Basis of presentation and Basis of Accounting

The accounts of the Authority are organized on the basis of fund accounting. The operations of the fund are

accounted for with a set of self-balancing accounts that comprise its assets, liabilities, net position, revenues and

expenses. The Authority utilizes a proprietary-type fund to account for its activities.

Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the

financial statements. Basis of accounting relates to the timing of measurement made, regardless of the

measurement focus applied.

Proprietary funds are accounted for using the accrual basis of accounting. Revenues are recognized when earned

and expenses are recognized when the related liabilities are incurred. The Authority applies all GASB

pronouncements as applicable.

NOTE 2 – CASH AND CASH EQUIVALENTS

Cash equivalents consisted of cash in banks in the amount of $65,088 and $167,807 for the fiscal years ended June

30, 2015 and June 30, 2014, respectively, all of which are FDIC insured.

NOTE 3 – DUE TO MST

The expenses of the Authority are paid by MST. During the fiscal years ended June 30, 2015 and 2014,

respectively, MST made payments of all the expenses on behalf of the Authority in the amount of $40,513 and

$30,701. The Due To MST balances were $34,275 and $178,419 for the fiscal years ended June 30, 2015 and

June 30, 2014, respectively.

NOTE 4 – NET POSITION

The surplus in net position represents equity of the members of the JPA. Generally, there is no accounting for

individual member's equity on the books of the Authority. As of June 30, 2015 and June 30, 2014, respectively,

the Authority had net position in the amount of $47,078 and $24,567.



To: Board of Directors From: Hunter Harvath, Deputy Treasurer Subject: FY 2017 Preliminary Budget RECOMMENDATION:

Adopt FY 2017 Preliminary Draft Operating Budget and refer to Finance Committee for review and recommendation.

FISCAL IMPACT: $51,000 in revenues and $45,800 in expenses

POLICY IMPLICATIONS: Article XIII. Budget Process, Section a., of the RTA Bylaws states:

“For each fiscal year…the Board shall adopt an Authority budget for capital and operating expenses, as well as capital and operating revenues.”

In addition, Article XIII, Budget Process, Section b. states:

“The Board shall adopt at least a preliminary budget by June 30 which shall serve as the tentative Authority budget pending adoption of a final budget. A final budget shall be adopted no later than August 30 of each year.”

DISCUSSION:

Section 4: Administrative Costs of the Monterey County Regional Taxi Authority Joint Powers Agreement states:

“It is the intent of the Parties to establish and collect fees from taxi operators which are sufficient to cover the administrative costs of the RTA, the premium cost for any liability insurance coverage carried for the benefit of the RTA and the cost of services to be provided by MST to the RTA.”

As of December 2011, the city of Monterey, via subcontract to MST, is responsible for conducting vehicle and driver permitting. That service is self-funded through fees charged by the city to drivers and vehicle owners.


The remainder of RTA’s administrative costs, including holding Board and

Technical Advisory Committee meetings, procuring liability insurance for board members, legal fees, as well as processing permits and enforcing regulations for taxi dispatching companies, must be generated through annual permit fees levied on taxi dispatching companies. Based on the current fee structure approved by your Board of $1,000 per dispatching company (which includes the first vehicle dispatched) and $300 per additional vehicle dispatched, staff is estimating revenues for FY 2017 to be $51,000, a 7% decrease from the budgeted FY2016 revenues. This decrease is due in part to there being one fewer taxi dispatching company permitted in the area after the revocation by your Board at its January 25, 2016, meeting of the DGDC, Inc. taxi dispatching company permit.

In addition, based on the data provided to RTA staff by Monterey Police

Department (MPD) regarding the number of taxicab vehicles permitted over the last twelve months, staff is forecasting 10 fewer taxicabs to be permitted next year compared to the current year. This can be attributed in large part to the expanding presence of Uber in the Monterey County market and will likely result in lower overall taxicab dispatching company permit revenues for the RTA. In the coming three months, staff will continue to monitor the total number of taxicabs permitted through the MPD and, if necessary, revise the permit revenues budgeted for the next fiscal year.

On the expense side, staff is holding expenses constant for the preliminary FY

2017 budget, which will yield cash available to be added to operating reserves in the amount of $5,200. While down 43% from the FY 2016 budget, this amount still represents revenues exceeding expenses for the fifth year in a row.

Staff recommends referral of this preliminary budget to the RTA Finance

Committee, with which staff will review actual expenditures to date for FY 2016, projected expenditures for the remainder of the fiscal year, as well as a proposed start-up cost repayment plan to RTA member jurisdictions. Based on input from the committee, a final draft of the RTA’s FY 2017 budget, as well as a draft repayment plan, will be presented to your Board at the July 25th meeting for consideration and adoption.

Attachment: Monterey County Regional Taxi Authority FY 2017 Preliminary Draft Operating Budget


ATTACHMENT 1

Revenue:

FY 2016 FY 2017 % Budget Budget Change

Permit Fees:

1st Vehicle Fee

$ 1,000 ea $10,000 $9,000 -10%

Subsequent Vehicles

$ 300 ea $45,000 $42,000 -7%

TOTAL REVENUE $55,000 $51,000 -7% Expenses: Labor:

RTA Admin Staff $6,000 $6,000 - Administrative:

Agenda production: $3,000 $3,000 -

Postage

$500 $500 -

Audit

$4,000 $4,000 -

Legal Notices

$3,500 $3,500 -

Customer Comment Card $0 $0 -

Website Admin

$1,000 $1,000 -

Board meeting stipends

$1,800 $1,800 -

Subtotal Administration $13,800 $13,800 - Legal:

Legal Services

$15,000 $15,000 -

Insurance:

Insurance

$11,000 $11,000 -

TOTAL EXPENSES $45,800 $45,800 - CASH ADDED TO RESERVES $ 9,200 $5,200 -43%

Monterey County Regional Taxi Authority FY 2017 Preliminary Draft Operating Budget


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