HomeMy WebLinkAboutIR 9676 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9676
To the Mayor and Members of the City Council October 21, 2014
tte. Page 1 of 1
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SUBJECT: FORT WORTH TRANSPORTATION AUTHORITY'S PERFORMANCE
rrn REPORT
The City of Fort Worth and the Fort Worth Transportation Authority (The T) entered into a
Memorandum of Understanding (MOU) on February 28, 2013, as authorized by City Council
resolution 4175-01-2013. The main purpose of the MOU is to provide increased transparency in
The T's planning, operations, and fiscal stewardship. The specific provisions of the MOU mirror
the current reporting provisions under which the Dallas Area Rapid Transit agency operates. The
MOU provides for 12 specific performance measures to be reported annually. The MOU and the
T's reporting of these measures are attached as Exhibit A. The T's approved operating and
capital budget for FY 2015 is included as Exhibit B. Going forward, staff will work with The T on
annual informal reports to the City Council on the deliverables detailed in the MOU.
In addition, the T was required to commission an independent performance audit of its overall
operations every five years starting in 2013. The T completed the independent performance audit
in March of 2014 (Exhibit C). Staff has noted nineteen specific recommendations which can be
found on page three of the report. The T's staff agreed with the majority of the findings and
indicated the recommendations would be implemented. The most apt description of the report
can best be summarized by a passage found on page five of the report. Although this passage
related directly to The T's ability to deliver the TEXRail project, the tenor of the report generally
follows this statement found in the Executive Summary:
Having completed the performance and management review of The T, it is
TransTech's view that the transit authority is one of the best we have examined.
While there is room for improvement, as is the case in every public and private
entity, The T scores well above average in most functions and activities.
Staff continues to work closely with The T as progress is made on the TEXRail project and the
system planning study.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
Exhibit A
The T's FY 2014 Responses to MOU Provisions
Executed MOU between the City of Fort Worth & The T
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l-n'SECRET ,l�jj Z
CONTRACT NO.
MEMORANDUM OF UNDERSTANDING AND AGREEMENT BETWEEN THE CITY
OF FORT WORTH AND THE FORT WORTH TRANSPORTATION AUTHORITY
REGARDING IMPROVED PROGRAM ASSESSMENTS AND TRANSPARENCY
This Memorandum of Understanding and Agreement (Agreement") is entered into by and
between the City of Fort Worth (the City), a home-rule municipal corporation of the State of
Texas, acting by and through its duly authorized Assistant City Manager, and the Fort Worth
Transportation Authority ("The T"), a regional transportation authority ("RTA") consisting of
one subregion, acting by and through its duly authorized Executive Director. The City and The
T are each referred to individually herein as a"Party" and collectively as the"Parties."
RECITALS
The City and The T agree that the following statements are true and correct and constitute the
basis on which they have entered into this Agreement.
WHEREAS, in two separate elections in 1983, voters in the North Texas area authorized
the creation of two RTAs, each consisting of a single subregion — the Dallas Area Rapid Transit
System (DART) for the Dallas subregion and The T for the Tarrant subregion — under the
statutory predecessor to Chapter 452 of the Texas Transportation Code and authorized each RTA
to collect a designated percentage sales tax for provision of public transportation; and
WHEREAS, in the nearly three decades since the creation of the two RTAs, the area has
experienced explosive growth, with the combined population of Tarrant and Dallas Counties
nearly doubling—from a little over 2.4 million in 1980 to almost 4.2 million in 2010; and
WHEREAS, the tremendous level of growth combined with the aging infrastructure of
the federal and state highway systems has resulted in increased congestion on area roadways and
additional strain on limited tax dollars; and
WHEREAS, these conditions have further emphasized the growing importance of
providing viable public transportation alternatives in a manner that conforms to public demand
and that is as efficient as possible; and
WHEREAS, the Texas Legislature has built into Chapter 452 a number of provisions
that require on-going analysis and public input with respect to the transit operations provided by
DART but has not provided corresponding requirements for The T; and
WHEREAS, the Parties agree that implementing processes to provide similar analysis
and public input would constitute exercise of powers necessary and convenient in The T carrying
out Chapter 452 and would be extremely beneficial in ensuring that the operations of The T are
as efficient and responsive as possible and in assuring the public that its voice is being heard and
that its tax dollars are being spent in the most efficient and effective manner possible; and
WHEREAS, the Parties wish to enter into the Agreement to provide for more beneficial
operational analysis and public input in the operation of The T.
OFFICIAL RECORD
RE�EivE� -LU � � ",i1i1
CITY SECRETARY
FT. WORTH, TX
Memnrandnm of I lndP.mtandina anti Aoree-ment C'FW and The T Pave I of 10
NOW, THEREFORE, for and in consideration of the premises outlined above and the mutual
covenants herein contained, the City and The T do hereby agree as follows:
AGREEMENT
1. PURPOSE AND SCOPE.
The purpose of this Agreement is to set forth the terms and conditions under which the
City and The T will cooperate to provide for additional operational analysis and public input
with regards to The T's transit operations.
2. TERM.
This Agreement shall commence on January 1, 2013 and will expire December 31, 2016
("Initial Term"). Following the Initial Term, this Agreement will automatically renew for
successive two-year periods unless either Party provides the other with written notice of intent
not to renew at least 180 days prior to the expiration of the then-current term.
3. DUTIES OF THE PARTIES AND SERVICES PROVIDED.
3.1. The T will:
a. Within one week of The T staff submitting its initial annual budget
proposal to The T board, provide a copy of the initial budget proposal to
the City for review and comment;
b. Within one week of The T board voting to approve the annual budget,
provide a copy of the adopted budget to the City;
C. At least 20 days before the date of a public hearing under subsection (h),
provide notice to the governing body of each municipality and the
commissioners court of each county affected by the subject of the public
hearing by depositing properly addressed notice in the United States mail
with postage paid.
d. On or before July 1 of 2013 and of each fifth year thereafter, evaluate each
distinct transportation service The T provides that generates revenue,
including light rail, bus, van, taxicab, and other public transportation
services, and determine whether The T should solicit competitive, sealed
bids from other entities to provide these transportation services.
Before October 1 of the year in which the evaluation is conducted, deliver
a copy of the evaluation results and of The T's response, if any, to the
evaluation to: (i) the county judge of each county having territory in The
T; and (ii) the presiding officer of the governing body of each municipality
having territory in The T.
e. Seek voter approval, in the manner provided for the issuance of bonds and
notes under Subchapter H of Chapter 452 of the Texas Transportation
Memmmnchim of I Intleroantiino and Aoreement—C'FW anti The T Pane?of 10
Code, for any lease or financing agreement secured wholly or partially by
the assets of The T if the duration of the lease or financing agreement is
longer than five years, provided however, that The T shall not be required
to seek voter approval if the transaction meets the criteria established
under Section 452.108(d) of the Texas Transportation Code.
f. Document the reasons for the award of a contract for (i) professional
services awarded to a person other than the person proposing to deliver the
services at the lowest cost; or (ii) construction, services, or property
awarded to a person other than the person recommended by the staff of
The T, with such documentation to include all of the reasons for not
selecting, as appropriate, the person proposing to deliver the services at
the lowest cost or the person recommended by the staff.
Within one month of awarding a contract subject to the preceding
paragraph, deliver a copy of the documentation of reasons to: (i) the
county judge of each county having territory in The T; and (ii) the
presiding officer of the governing body of each municipality having
territory in The T.
g. Require a two-thirds vote of The T board in order to (i) issue any debt
allowed by law; (ii) enter a lease as lessee or financing agreement as
obligor if the lease or agreement is secured by the other assets of The T;
(iii) effect a major change in a service plan as described by Section
452.303 of the Texas Transportation Code; (iv) approve the financial plan
for The T; or(v) enter an agreement with any municipality included in the
area of The T for the distribution of The T's revenues.
h. Hold a public hearing on (i) any fare change; (ii) a service change
involving (A) 25 percent or more of the number of transit route miles of a
transit route; or (B) 25 percent or more of the number of transit revenue
vehicle miles of a transit route, computed daily, for the day of the week for
which the change is made; or(iii) the establishment of a new transit route.
When the number of changes of a type described in the preceding
paragraph in a fiscal year would equal the percentage applicable in that
paragraph, the public hearing must be held before the change that would
equal or exceed the percentage.
For purposes of this subsection the following definitions and criteria shall
apply:
(i) "Transit route" means a route over which a transit vehicle
travels and that is specifically labeled or numbered for the purpose
of picking up or discharging passengers at regularly scheduled
stops and intervals.
(ii) "Transit route mile" means one mile along a transit route
regularly traveled by transit vehicles while available for the
general public to carry passengers.
Memnranhim of 1 Inderctandinv and Agreement—rFW and The T Noe I of I0
(iii) "Transit revenue vehicle mile" means one mile traveled by a
transit vehicle while the vehicle is available to the general public to
carry passengers.
(iv) "Service change" means any addition or deletion resulting in
the physical realignment of a transit route or a change in the type
or frequency of service provided in a specific, regularly scheduled
transit route.
(v) The length of a transit route is the distance traversed in
traveling completely over the route and returning to the starting
point to begin another circuit of the route. If a route is defined in
one direction only, the one-directional distance is the route length.
i. Hold a public hearing on a proposed change in the service plan that would:
(i) change the location of a right-of-way of a fixed guideway system; (ii)
change or add a width of a right-of-way of a fixed guideway system; (iii)
change a grade separation or add a grade separation to a fixed guideway
system; (iv) move the location of a station of a fixed guideway system; (v)
reclassify the aerial, at-grade, or subgrade vertical alignment of a fixed
guideway or establish the vertical alignment of a fixed guideway; (vi)
move the location of. (A) a parking lot;(B) a maintenance facility; or(C)
an off-street transfer center; (vii) add a facility listed in subsections (i)-
(vi); or(viii) add a route for a fixed guideway system.
Before holding a public hearing required under the preceding paragraph
The T board shall in writing notify: (i) each owner of real property located
within 400 feet, including streets and alleys, of the boundary of the
proposed right-of-way or the boundary of property on which the facility is
proposed to be located; and (ii) the governing body of each municipality
and the commissioners court of each county in which the changed or
additional right-of-way or facility is to be located.
The notice required by this subsection shall be given to each governing
body and to the property owners shown by the municipal or county tax roll
at least 20 days before the date of the hearing by depositing the properly
addressed notice in the United States mail with postage paid.
j. After the public hearing under subsection (i), require a favorable vote of
two-thirds of the members present to make a change in the service plan
described by subsection (i).
Within one week of the vote to make a change in the service plan under
this subsection, The T board shall give notice of the change to: (i) the
commissioners court of each county in which the changed or additional
right-of-way or facility is to be located if the change is located in an
unincorporated area; and (ii) the governing body of each municipality in
which the changed or additional right-of-way or facility is to be located.
Memorandum of 1 IndPro indinn and Agreement—CFW and The,T Pape 4 of I n
k. Within one month of completion of an audit prepared under Section
452.451 of the Texas Transportation Code, The T board shall deliver a
copy of the audit to the City's internal auditor within one month of the
date such audit is completed. The City's internal auditor may elect to file
any comments about the audit with Fort Worth City Council and The T
board, subject to a risk assessment performed by the City's internal auditor
and to the Fort Worth City Council's approval of including the preparation
of the comments in the internal auditor's annual audit plan. The T shall
allow the City's internal auditor to (i) examine any work papers from The
T's audit; or (ii) audit the financial transactions of The T if the City's
internal auditor determines an audit is necessary.
1. On or before April 1 of 2013 and of each fourth year thereafter, contract
for a performance audit of The T to be conducted by a firm that has
experience in reviewing the performance of transit agencies. The
purposes of the performance audit are to provide: (i) evaluative
information necessary for the performance of oversight functions by state
and local officers; and (ii) information to The T to assist in making
changes for the improvement of the efficiency and effectiveness of The
T's operations.
Each performance audit must include an examination of:
(i)one or more of the following:
(A) the administration and management of The T;
(B)transit operations; or
(C) transit authority system maintenance;
(ii) The T's compliance with applicable state law, including
Chapter 452 of the Texas Transportation Code; and
(iii)the following performance indicators:
(A) subsidy per passenger, operating cost per revenue mile,
and operating cost per revenue hour, with
(I) the subsidy per passenger being computed by
subtracting annual operating revenues from annual
operating costs and dividing that amount by the
total number of passengers for the same period;
(II) the operating cost per passenger being
computed by dividing The T's annual operating cost
by the passenger trips for the same period;
Memoranchim of 1 Inrlemtanrlino anti Agreement—C'FW anti The.T Noe 5 of 10
(I11) the operating cost per revenue hour being
computed by dividing the annual operating cost by
the total of scheduled hours that The T's revenue
vehicles are in revenue service for the same period;
and
(IV) the operating cost per revenue mile being
computed by dividing the annual operating cost by
the number of miles traveled by The T's revenue
vehicles while in revenue service;
(B) sales and use tax receipts per passenger, with the
receipts per passenger being computed by dividing the
annual receipts from The T's sales and use taxes by
passenger trips for the same period;
(C) fare recovery rate, with the rate being computed by
dividing the annual revenue (including fares, tokens,
passes, tickets, and route guarantees) provided by
passengers and sponsors of passengers of revenue vehicles
by the operating cost for the same period but excluding
from revenue provided by passengers and sponsors of
passengers all charter revenue, interest income, advertising
income, and other operating income;
(D) number of passengers per hour, with the number being
computed by dividing the total number of annual
passengers by the total number of revenue vehicle hours for
the same period;
(E) on-time performance, with such performance being
computed by determining an annual percentage of revenue
vehicle trips of revenue vehicles that depart from selected
locations at a time not earlier than the published departure
time and not later than five minutes after that published
time. On-time performance is computed only for fixed
route revenue service;
(F) number of accidents per 100,000 miles, with the
number being computed by multiplying the annual number
of accidents by 100,000 and dividing the product by the
number of miles for all service, including charter and
nonrevenue service, for the same period. In this subsection,
"accident" includes: (1) a collision that involves a T
revenue vehicle, other than a lawfully parked revenue
vehicle, and results in property damage, injury, or death;
and (II) an operating incident resulting in the injury or
death of a person on board or boarding or alighting from a
T revenue vehicle; and
Memnrandum of I Inderctandinv and Avreemrnt—C'FW and Thr T Pave 6 of 10
(G) number of miles between mechanical service calls,
with the number being computed by dividing the annual
number of miles for all service, including charter service
and nonrevenue service, by the number of mechanical
service calls for the same period. In this subsection,
"mechanical service call" means an interruption in revenue
service that is caused by revenue vehicle equipment failure
that requires assistance from a person other than the vehicle
operator before the vehicle can be operated normally.
A subject described under subsection (i)must be examined at least once in
every third audit.
For purposes of this subsection the following definitions shall apply:
"Operating cost" means The T's costs of providing public transit service,
including purchased transit service not performed by The T, but excluding
the costs of. (A) depreciation, amortization, and capitalized charges; (B)
charter bus operations; and (C) coordination of carpool and vanpool
activities.
"Passenger" or "passenger trips" means the number of all passenger
boardings, including transfers, but excluding charter passengers and
carpool and vanpool passengers whose trips are only coordinated by The
T.
"Revenue service" means the time a T revenue vehicle is in service to
carry passengers, other than charter passengers.
"Revenue vehicle" means a vehicle, or a combination of rail vehicles
comprising a train, that is: (A) used to carry paying passengers; and (B)
operated by The T or as a purchased service.
M. Prepare a written response to the performance audit report. The response
must include each proposal for action relating to recommendations
included in the report, whether the proposal for action is pending, adopted,
or rejected.
The T shall make copies of the report and the response available for public
inspection at the offices of The T during normal business hours.
The T shall conduct a public hearing on each performance audit report and
The T's response to the audit. The T shall give notice of the hearing by
publication of the notice in a newspaper of general circulation in the area
included in The T at least 14 days before the date of the hearing.
n. Before February 1 of the year after the year in which the performance
audit is conducted, deliver a copy of each performance audit report and of
The T's response to the report to: (i) the county judge of each county
having territory in The T; and (ii) the presiding officer of the governing
body of each municipality having territory in The T.
Memorandum of I Inderotanding and Agreement—CFW and The T Page 7 of 10
o. For any public hearing required under this section, post notice of the
public hearing in the same manner in which The T posts notice for
meetings that are subject to the Texas Open Meetings Act. Notice
required under this subsection shall be in addition to any other notice
required herein.
3.2 The City will:
a. Perform, at its own expense, all tasks associated with considering matters
under Section 3.2 that require City review, input, or approval.
b. Through its internal auditor, provide, at the City's own expense, (i) review
of The T's annual financial audit, including, when warranted, the filing of
comments about the audit with Fort Worth City Council and The T board,
subject to a risk assessment performed by the City's internal auditor and to
the Fort Worth City Council's approval of including the preparation of the
comments in the internal auditor's annual audit plan; (ii) examination,
when warranted, of any work papers from The T's audit; and (iii) audit the
financial transactions of The T if the City's internal auditor determines an
audit is necessary.
C. Assist in efforts to publicize The T's notices of changes and public
hearings by posting notices that the City receives from The T on the City's
website and by including information regarding such notices in water bill
inserts and City page articles as resources allow.
4. CONSIDERATION.
By execution of this Agreement, the City and The T acknowledge and agree that
performance by each Party of its respective obligations under Section 3 and the exchange of the
other covenants and promises expressed herein serves as adequate consideration for entering into
this Agreement and for binding the Parties hereto.
5. GENERAL PROVISIONS.
5.1 No Waiver. The failure of either Party to insist upon the performance of any
provision or condition of this Agreement or to exercise any right granted herein
shall not constitute a waiver of that Party's right to insist upon appropriate
performance or to assert any, such right on any future occasion.
5.2. Severability. If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired.
5.3. Force Maieure. The Parties shall exercise their best efforts to meet their
respective duties and obligations hereunder. However, if either Party is unable,
either in whole or part, to fulfill its obligations under this Agreement due to acts
of God; strikes, lockouts, or other industrial disturbances; acts of public enemies;
MPmnrandnm of I IndetNtanding and Agreement—C'FW and The T Page R of 10
wars; blockades; insurrections; riots; epidemics; public health crises; earthquakes;
fires; floods; restraints or prohibitions by any court, board, department,
commission, or agency of the United States or of any state; declaration of a state
of disaster or of emergency by the federal, state, county, or City government in
accordance with applicable law; issuance of a Level Orange or Level Red Alert
by the United States Department of Homeland Security; any arrests and restraints;
civil disturbances; or explosions; or some other reason beyond the Party's
reasonable control (collectively, "Force Majeure Event"), the obligations so
affected by such Force Majeure Event will be suspended only during the
continuance of such event..
5.4 Venue and Jurisdiction. This Agreement shall be construed in accordance with
the laws of the State of Texas. Venue for any action brought on the basis of this
Agreement shall lie exclusively in state courts located in Tarrant County, Texas.
5.5 Compliance with Laws, Ordinances, Rules and Regulations. This Agreement
is subject to all applicable federal, state and local laws, ordinances, rules and
regulations, including but not limited to all provisions of the City's charter.
5.6 Independent Contractors. Each Party shall operate hereunder as an independent
contractor and not as an officer, agent, servant or employee of the other Party.
Each Party shall have the exclusive control of and the exclusive right to control
the work designated to be performed by that Party under the terms of this
Agreement, and of all persons performing the same and shall be solely
responsible for the acts and omissions of the Party's officers, members, agents
and employees. Neither Party shall be responsible under the doctrine of
respondent superior for the acts or omissions of the officers, members, agents,
employees or officers of the other Party. Nothing herein shall be construed as
creating a partnership or joint enterprise between the City and The T.
5.7 Immunity and Third Parties. It is expressly agreed that, in the execution and
performance of this Agreement, neither the City nor The T waives, nor shall be
deemed to waive, any immunity or defense that would otherwise be available to
that Party with respect to third parties against claims arising in the exercise of the
Party's respective powers and functions. Nothing in this Agreement shall be
construed to benefit any third party who is not a signor to this Agreement. This
Agreement may not be construed to expand the liability of the City or The T
beyond the scope of Chapter 101 of the Texas Civil Practice and Remedies Code.
5.8 Amendment. No amendment, modification, or alteration of this Agreement shall
be binding unless the same is in writing, dated subsequent to the date hereof, and
executed by both Parties.
5.9. Notices. All notices required by this Agreement shall be addressed to the Parties
at the following address, or at such other address as either Party designates in
writing, by hand delivery or by United States first-class mail, postage prepaid:
Memomanrhim of(fnfiemtandino and Avreement—C'FW anti The T Page 4 of 10
If to the City: If to The T:
Fernando Costa, Asst. City Manager Richard Ruddell, Executive Director
1000 Throckmorton St. 1600 East Lancaster Avenue
Fort Worth, TX 76102 Fort Worth, Texas 76102
5.10 Review of Counsel. The Parties acknowledge that each Party and its counsel
have had opportunity to review and revise this Agreement and that the normal
rules of construction to the effect that any ambiguities are to be resolved against
the drafting party shall not be employed in the interpretation of this Agreement or
any exhibits hereto.
5.11 Entirety of Agreement. This written instrument (together with any attachments,
exhibits, and appendices) constitutes the entire understanding between the Parties
concerning the subject matter addressed herein, and any prior or
contemporaneous, oral or written agreement that purports to vary from the terms
hereof shall be void.
EXECUTED in multiple originals as of the last date indicated below:
CITY OF FORT WORTH FORT WORTH TRANSPORTATION
AUTHORITY:
By: By:
Fernando Costa Richard Rdddell
Assistant City Manager Executive Director
Date: �ZS!!.� Date:
nu►.
ATTE$ ,� �F S
By: J �e
Mary Kayser N
City Secretary
Date: 3)1 h3 �gy� 000°°ba
APP VED AS TO FORM AN Y:
By:
Denis WMcElr , Assistant City Attorney
� } 4r-K- Of-20l3
R
IAL RECORDSECRETARYWORTH,TX
Memmmndnm of 1 Indemtandino and Avreement--CFW and The T Pave.10 of 10
Exhibit B
The T's FY 2015 Operating & Capital Budget
Exhibit B
the FORT WORTH TRANSPORTATION A UTHORITY
1600 E.Lancaster Avenue ❖Fort Worth,Texas 76102 ❖ (817)215-8709 ❖ (817)215-8700
September 26, 2014
Bryan Beck
Regional Transportation Coordinator
City of Fort Worth
1000 Throckmorton St.
Fort Worth, TX 76102
Dear Mr. Beck:
The Fort Worth Transportation Authority (The T) is pleased to submit its annual budget for the fiscal
year beginning October 1, 2014. Attached are summaries of The T's operating and capital budgets, which
were approved by The T's Board of Directors on September 22,2015.
The fiscal 2015 annual budget meets key financial standards adopted by the Board of Directors to
ensure a sound financial future. These standards are:
• Ensure that annual operating expenses do not exceed annual operating revenues;
• Establish and maintain a self-insurance reserve;
• Establish and maintain an operating reserve; and
• Build a rail reserve to match other funds for the TEX Rail project.
Operating and Capital Budget for fiscal year 2015
Total operating expenses before depreciation for fiscal 2015 are increasing 3.2%. Operating
revenues (which exclude capital grants and contributions) are budgeted at $88.5 million and are
expected to increase $0.8 million or 0.9% from the fiscal 2014 forecast. This increase is primarily due
to increased sales tax revenue. The fiscal 2015 operating budget expenses before depreciation total
$67.0 million, which is 3.2% greater than the fiscal 2014 estimated expenses.
The T's total capital budget for fiscal 2015 of $947.4 million consists of all projects that we have
identified and are able to estimate the cost, whether they are near completion or will be started at some
future date.
We expect that the maximum amount of capital expenditures during fiscal 2015 will be
approximately $131.5 million. Of that amount, $59.0 million, or 44.9%, will be funded with federal
grants. Most capital expenditures in fiscal 2015 will be for the TEX Rail project. These expenditures will
include initial payments for vehicles and real estate acquisitions.
CITY BUS SERVICE ■COMMUTER RAIL SERVICE ■SERVICE FOR THE MOBILITY IMPAIRED ■CARPOOL&VANPOOL MATCHING
Page 2
Changes from the Preliminary Operating and Capital Budgets
The fiscal 2015 Operating Budget revenue increased due to Sales Tax, which is based on a 4.6%
growth rate. Expenses decreased 0.7% due primarily to a reduction in Fringe Benefits, specifically Group
Health Insurance rates and were partially offset by an increase in Other Service type expenses, specifically
Professional Services.
Changes from the Preliminary Budget are as follows:
(amounts in thousands)
Inc/(Dee)
Revenue
Sales Tax 229
Total Revenue Increase 229
Expense
Salary&Fringe Benefits (502)
Services 39
Total Expense Decrease (463)
Net decrease in Reserves $ (234)
Changes from the preliminary operating revenue budget are due to updated sales tax revenue projections
based on better than expected growth in the last three months. Salary and fringe benefits changed because
the group health insurance rate changed from an estimated 12% to an agreed upon 6% decrease. The
service type expense change was due to adding professional services for consulting on an Enterprise
Resource Planning system.
The summary of The T's proposed Capital Budget for fiscal 2015 is attached. Projects that will be
carried over into fiscal year 2015 were updated to include the Ellipse Upgrade project. This project was
originally scheduled to be completed in fiscal 2014; however, due to extending the evaluation period in
order to ensure the project appropriately meets the needs of The T the completion date was pushed out.
Capital Maintenance T Facilities—FYI was increased to include the replacement of the South Park&Ride
Canopy. Tex Rail totals were updated using the most current project budget.
Summary
In summary, The T's annual budget for fiscal 2015 is balanced and reflects our vision and goals of
providing services beyond those of traditional bus operations. We strive to provide effective multi-
modal public transportation that meets the needs of our customers.
As always, The T will work to provide excellent public transportation services throughout our
service area that will contribute to our region's goals for mobility, clean air, and economic prosperity.
We appreciate your support and active participation and look forward to many more years of
providing public transportation to citizens of our member cities.
Sincerely,
Paul J Ballard
President&CEO
CITY BUS SERVICE ■COMMUTER RAIL SERVICE ■SERVICE FOR THE MOBILITY IMPAIRED tCARPOOL&VANPOOL MATCHING
Page 3
PB/dw
Enclosures
W. City Council Members
David Cooke, City Manager
Fernando Costa,Assistant City Manager
Bryan Beck, Regional Transportation Coordinator
CITY BUS SERVICE ■COMMUTER RAIL SERVICE ■SERVICE FOR THE MOBILITY IMPAIRED ■CARPOOL&VANPOOL MATCHING
Fort Worth Transportation Authority
Operating Budget
(Amounts in Thousands)
FY 2015
Budget
Operating Revenue
Fixed Route $ 3,811
Para-transit 1,052
TRE 2,563
E-Pass 310
Other Operating 358
Total Operating Revenue 8,094
Other Revenue
Sales Tax 64,762
Investment 200
Advertising 360
Operating Grants 13,175
Capital Grants 58,999
Contributions from Grapevine 9,091
Contributions from Partners 910
Miscellaneous 375
Rental Income 600
Total Other Revenue 148,472
Total Revenue 156,566
Operating Expense
Salary and Benefits 34,818
Services 22,251
Fuels and Lubricants 3,215
Tires and Tubes 400
Maintenance Materials 3,188
Supplies and Materials 340
Utilities 888
Insurance 390
Taxes and Fees 111
Miscellaneous 918
Total Operating Expense 66,519
Local Area Programs 146
Other non-operating expense 1,491
Net Available for Capital
Expenditures and Reserves 88,410
Capital Expenditures 131,535
Capital Lease Principal Payment 275
Decrease in Reserves $ (43,400)
Budgeted Non-Cash Depreciation $ 14,544
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Exhibit C
2014 Performance and Management Audit
Exhibit C
Fort Worth
Transportation
Authority (The T)
Performance and Management
Audit Services Final Report
February 2014
TransTech
Management, Inc.
in association with
Azimuth Group, Inc.
Nancy R. Edmonson Transportation Consulting
Table of Contents
ExecutiveSummary ..................................................................................................................2
Introduction .............................................................................................................................6
Methodology............................................................................................................................7
BoardSupport - BSP..................................................................................................................9
Compliance - COM ..................................................................................................................11
Contract Administration/Procurement - PRO ..........................................................................13
CustomerService- CUS...........................................................................................................15
Finance Functions and Accounting- FIN...................................................................................16
GeneralCounsel - GEC.............................................................................................................17
Grants/DBE Administrator- GRT.............................................................................................19
HumanResources - HRD..........................................................................................................21
InformationTechnology- INT..................................................................................................25
Marketing- MKT.....................................................................................................................37
Mobility Impaired Transportation Service - MITS.....................................................................38
Organizational Structure and Board Governance - ORG ...........................................................54
Operations and Maintenance - MPM ......................................................................................62
PerformanceIndicators - KPI...................................................................................................66
Planning- PLN.........................................................................................................................69
ProjectManagement- PMT ....................................................................................................71
PropertyManagement - PPT...................................................................................................72
Risk and Safety Management - RSM........................................................................................73
Transportation Management (Grant-Funded)—TRM...............................................................77
TrinityRailway Express—TRE..................................................................................................78
TransitSecurity- SEC ..............................................................................................................79
AppendixA.............................................................................................................................81
AppendixB...........................................................................................................................135
AppendixC...........................................................................................................................136
AppendixD...........................................................................................................................138
Fort Worth Transportation Authority TransTech Management, Inc.
Performance Audit Page 1
Executive Summary
Highlights of the Fort Worth Transportation Authority
The Fort Worth Transportation Authority (The T) is a regional transportation authority and a
political subdivision of the State of Texas created and existing by Transportation Code to build
and operate a transportation system. There are currently three member jurisdictions that
voted to be in The T-the cities of Fort Worth, Blue Mound, and Richland Hills, all located within
Tarrant County. The T annually provides nine million passenger trips on buses, vanpools and
the Trinity Railway Express (TRE), which it jointly owns and operates with Dallas Area Rapid
Transit. Also, the T is developing TEX Rail, a new commuter rail from downtown Fort Worth to
DFW Airport.
The T is governed by a nine member Board of appointed officials. Eight Board members are
appointed by the Fort Worth City Council and one is appointed by the Tarrant County
Commissioners Court, in accordance with Transportation Code. The Board sets policy and
establishes broad business goals and policies for management.The President/Executive
Director reports to the Board and is responsible for implementation of Board policies and day-
to-day operation of The T.
Purpose of the Performance and Management Audit
The overall objective of the third-party performance and management audit is to review and
assess the Authority's core management processes and practices to ensure a world-class
operation.
Methodology
The T and TransTech identified twenty-one major departments or functional areas of particular
importance in this study.
With the assistance of various organizational units of The T, the TransTech team assimilated a
wide array of documents and data. This material, in addition to information from the National
Transit Database and selected components of peers' operations, the TransTech team secured
the base necessary for the detailed examination of each department, which follows.
Detailed, comprehensive interviews with agency executives and managers enabled an initial
identification and evaluation of the most pressing problems by agency management and the
consulting team, as well as provided a check for consistency of perspective. Interviews were
conducted according to a pre-approved (by The T) guideline to ensure completeness and
consistency.
Fort Worth Transportation Authority TransTech Management, Inc.
Performance Audit Page 2
Following the primary round of interviews, TransTech conducted a diagnostic assessment to
share initial observations with all team members. Subsequently, additional data and
information were collected, and follow-up interviews in selected areas were conducted.
The results of the areas studied are presented in alphabetically-listed separate sections, and
each is labeled with a 3-letter designation which will aid identification in tracking their
implementation. Most sections contain introductory material, observations and a listing of
specific recommendations, as applicable. These are provided in the main text of the report.
Following several review sessions involving key FWTA managers and executives and TransTech,
Appendix A reports on The T's compliance with federal and state laws and regulations, and
Appendices B and C report on the Board's 2013 successful efforts to bring two matters into
compliance. Appendix D provides commentary by The T executives and managers on various
observations and recommendations.
Primary Recommendations
The Request for Proposals identified seventeen important functional areas requested in this
study. Since several were divided into two components for clarity and transparency, the final
report provided twenty-one key Sections, or Chapters.
In the Executive Summary, we have identified the recommendations that we feel are most
relevant and will be the most meaningful to the agency. They are lettered and numbered so
that they may be easily located within the text; overview sections and observations are also
provided to help explain the nature and extent of each recommendation.
Recommendations GRT-1. Develop specific objectives for the number of DBE firms to be
contacted in a given year.
Recommendation INT-1. Develop a comprehensive information technology strategic plan.
Recommendation INT-2.2. Apply a structured project management methodology including an
integrated approach to cultural change management.
Recommendation INT-3. Develop and execute a comprehensive information technology
disaster recovery and business continuity plan.
Recommendation INT-4. Initiate the planning, evaluation and selection process for
replacement of the Ellipse enterprise resource planning software package.
Recommendation INT-5. Increase the authorized staffing of the Information Technology
Department, over time and as resources permit, to a minimum of nine full time personnel.
Recommendation MKT-1. Establish goals for specific marketing programs to help assess
ridership effectiveness.
Fort Worth Transportation Authority TransTech Management, Inc.
Performance Audit Page 3
Recommendation MITS-5. Track eligibility and screening data to provide management with
the information needed to evaluate the effectiveness of the screening process.
Recommendation ORG-1. Introduce consistency in titles and unit labels, insofar as possible.
Recommendation ORG-4. Develop a succession planning program for key areas of the
agency.
Recommendation ORG-5. The T staff needs to continue its public governance and transit
education efforts for the Board.
Recommendation ORG-6. Relatively small changes 'at the margin' will improve the logic and
functioning of the agency, particularly in regard to clarity of mission and purpose for each
organizational unit. Recommendations include the creation of a new Executive Leadership
Team of six positions, as expressed in the recommended "functional" organizational chart.
Recommendation MPM-2. The new President/Executive Director should assess the
relationship between the administrative and operations teams at The T and —working with
the executive staff- ensure that the historic culture that has been long-established at The T is
preserved and strengthened.
Recommendation MPM-3. Monitoring of the application of the FMLA should be as rigorous
as is needed to ensure appropriate compliance. Of course, the same goes for all union
agreement provisions.
Recommendation KPI-1._
The new KPI process should be developed with the assistance of the
outside auditors of The T and in discussions with the City of Fort Worth.
Recommendation PLN-2. Create a Five-Year Service Plan for the T's bus service.
Recommendation PMT-1. Develop a five-year capital plan for The T.
Recommendation RSM-2. Develop a more robust system of safety performance
measurement and reporting.
Recommendation SEC-1. Expand, upgrade and replace the TRE video surveillance equipment
and systems as required, using either local funds, grant support or some combination thereof.
Fort Worth Transportation Authority TransTech Management, Inc.
Performance Audit Page 4
Staff Capability to Oversee and Manage TEX Rail
Having completed the performance and management review of The T, it is TransTech's view
that the transit authority is one of the best we have examined. While there is room for
improvement, as is the case in every public and private entity, The T scores well above average
in most functions and activities. Given the success of its role in the Trinity Railway Express
project, and supported by a substantial planning, design and full service engineering firm, there
is no reason to believe that The T's future role in TEX Rail will not be equally successful.
Fort Worth Transportation Authority TransTech Management, Inc.
Performance Audit Page 5
Introduction
The third-party Performance Audit was initiated at the request of the President/Chief Executive
Director as a means of providing the Board with a comprehensive assessment of the
management and operations of the Fort Worth Transportation Authority (The T).
The assessment was conducted by a team of transportation management consultants led by
TransTech Management, Inc., a firm that specializes in assisting transit, toll and highway and
other public works agencies in North America to improve their efficiency and effectiveness.
The Fort Worth Transportation Authority (The T) is a regional transportation authority and a
political subdivision of the State of Texas created and existing in accordance with Chapter 452
of the Transportation Code to build and operate a transportation system. There are currently
three (3) member jurisdictions that voted to be in The T, including the cities of Fort Worth, Blue
Mound, and Richland Hills. These jurisdictions are all located within Tarrant County. The T's
Service Area is 322 square miles with a population exceeding 751,400 people. Also, the city of
Grapevine, population 46,334, has contracted with The T for future commuter rail service.
The T is governed by a nine (9) member Board of appointed officials. Eight (8) Board members
are appointed by the Fort Worth City Council and one (1) Board member is appointed by the
Tarrant County Commissioners Court, in accordance with Subchapter N., Sec. 452.562 (c) — (f) of
the Transportation Code. The Board sets policy and establishes broad business goals and
policies for management. The President/Executive Director reports to the Board, and is
responsible for implementation of Board policies and day-to-day operation of The T.
The T annually provides nine million passenger trips on buses, vanpools and the Trinity Railway
Express (TRE), which it jointly owns and operates with Dallas Area Rapid Transit. The T is
developing TEX Rail, a new commuter rail from downtown Fort Worth to DFW Airport.
Fort Worth Transportation Authority TransTech Management, Inc.
Performance Audit Page 6
Methodology
The overall objective of the third-party performance audit is to review and assess the
Authority's core management processes and practices to ensure a world-class operation.
In the Request for Proposals, The T identified seventeen major functional areas of particular
importance in this study:
1. Accounting
2. Administration
3. Finance
4. Grants
5. Human Resources
6. Information Technology
7. Lega 1
8. Maintenance
9. Marketing
10. Mobility Impaired Transportation Services
11. Operations
12. Planning
13. Procurement
14. Project Management
15. Property Management
16. Risk Management
17. Security
The TransTech team conducted an orientation session with executives to ensure matched
expectations for the assessments.
With the assistance of various organizational units of The T, the TransTech team assimilated a
wide array of documents and data. This material, in addition to information from the National
Transit Database and selected components of peers' operations, the TransTech team secured
the base necessary for the detailed examination of each department.
Detailed, comprehensive interviews with agency executives and managers enabled an initial
identification and evaluation of the most pressing problems by agency management and the
Fort Worth Transportation Authority TransTech Management, Inc.
Performance Audit Page 7
consulting team, as well as provided a check for consistency of perspective. Interviews were
conducted according to a pre-approved (by The T) guideline to ensure completeness and
consistency.
Following the primary round of interviews, TransTech conducted a diagnostic assessment to
share initial observations with all team members. Subsequently, additional data and
information were collected, and follow-up interviews in selected areas were conducted.
The results of the areas studied are presented in alphabetically-listed separate sections that
follow, and each is labeled with a 3-letter designation which will aid identification in tracking
their implementation. Most sections contain introductory material, observations and a listing
of specific recommendations, as applicable. These are provided in the main text of the report.
Following several review sessions involving key FWTA managers and executives and TransTech,
Appendix A reports on The T's compliance with federal and state laws and regulations, and
Appendices B and C report on the Board's 2013 successful efforts to bring two matters into
compliance. Finally, Appendix D provides commentary by The Ton various observations and
recommendations.
Fort Worth Transportation Authority TransTech Management, Inc.
Performance Audit Page 8
Board Support - BSP
A single individual serves in the position as Director of Administration/Board Liaison. This
position supports the Board and reports to the 9-member Board of Directors, the
President/Executive Director and Executive Vice President/C00. As noted, on the
Organizational Chart in the ORG section, the duties also extend to the support of other senior
executives.
The Director of Administration/Board Liaison is also a member of Senior Staff. All requests and
duties pertaining to the Board of Directors is handled by this incumbent. This includes but is
not limited to:
• Coordinating Board and Board Committee meeting materials
• Coordinating the Monthly Board of Directors Meeting
• Coordinating meeting schedules for Board Members
• Maintaining official documents of Board and Board Committee meetings
• Planning all aspects of Board members travel, including air travel and hotels
• Filing expense report
• Training Board members on using any electronic devices that are required to be used
during their appointment
• Communicating frequently which each member of the Board
• Attending all committee meetings and takes notes in some
• Handling audio/visual tools involved during meetings that are filmed and recorded,
including the Governance Committee and the Commuter Rail Meetings which involve
TRE and TEX Rail.
The incumbent also serves as the Liaison to Administrative Law Judges.
Comparing The T to DART and other transit properties, similar Board support functions provide
the following administrative support to the Board (items 1-5) as well as supporting several
other entities (non-transit) on an as-needed basis (items 6):
1. Distributes information to each Board member
2. Assists in handling Board member requests
3. Coordinates Board and Board Committee meeting materials
4. Coordinates meeting schedules for Board members
5. Maintains official documents of Board and Board Committee meetings
6. Serves as Liaison to Administrative Law Judges.
Fort Worth Transportation Authority TransTech Management, Inc.
Performance Audit Page 9
Items 1-5 above are typical board support functions for public agencies of all types and for
many private sector boards. Depending on many factors, including how often the Board and
committees meet, the activity level of the Chairperson, the board's desire for in-depth pre-
meeting materials, their interest in operational details, nature and extent of Board committees,
and so forth, the employees required to provide board support may vary widely.
At The T, the incumbent (who has served for seven years) Director of Administration / Board
Liaison is satisfied with the work load and thus does not see a need for additional assistance in
her office.
Observation BSP-1. There are no significant observations that require attention of the Board
or executive staff in this area.
Fort Worth Transportation Authority TransTech Management, Inc.
Performance Audit Page 10
Compliance - COM
The Fort Worth Transportation Authority (FWTA) was created under the Texas Transportation
Code, Chapter 452 Regional Transportation Authorities. Transportation authorities created
under Chapter 452 fall under one of two subchapters— N or 0. FWTA is governed by
Subchapter N which states, "This subchapter applies only to the board of a subregion that has
no principal municipality with a population of more than 800,000." With a 2010 census
population at 741,206 and an average annual growth over the last two years of 8,302, it seems
likely that Fort Worth will exceed the 800,000 population limit by 2020. This would result in
FWTA moving from the governance of Subchapter N to that of Subchapter 0, which is entitled
"Subregional Board In Subregion Having Principal Municipality With Population Of More Than
800,000." The primary significance of this shift is that transportation authorities governed by
Subchapter 0 have substantially more requirements imposed upon them by the statute than do
those governed by Subchapter N.
As a part of its performance audit of FWTA, TransTech has examined FWTA's compliance with
applicable state and federal laws. The matrix which follows lists state law requirements and
TransTech's observations regarding compliance. Given the above-referenced anticipated
change in FWTA's statutory status, requirements under both Subchapters N and 0 have been
included. Requirements limited to those authorities governed by Subchapter 0 are highlighted
in yellow and are acknowledged as not required.
It should be noted that as of March 1, 2013, a Memorandum of Understanding and Agreement
was entered into between the City of Fort Worth and FWTA which, in part, imposed multiple
duties upon FWTA which coincide with the Subchapter 0 requirements. This has resulted in
FWTA frequently being in compliance with the Subchapter 0 provisions despite the fact that
the statute does not require it. These instances are noted in the matrix in Appendix A.
Observation COM-1.1. Section 452.547 of the Texas Transportation Code is in practice, but
not codified in The T's bylaws.
• On November 18, 2013 the Fort Worth Transportation Authority Board of Directors
passed a resolution that addressed this issue. The resolution can be found in Appendix
B.
Observation COM-1.2. Section 452.1055(a) of the Texas Transportation Code was found to be
out of compliance.
• On November 18, 2013 the Fort Worth Transportation Authority Board of Directors
passed a resolution that addressed this issue. The resolution can be found in Appendix
C.
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Recommendation COM-1. There are no further compliance issues for the Board or staff to
address.
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Contract Administration/Procurement - PRO
Within The T organizational structure, the AVP Contract Administration / Procurement reports
to the VP/CFO. The two have an "open-door policy," and they communicate freely and
effectively with each other. The office is viewed as having two primary functions: a) Contract
Administration and b) Procurement.
The Contract Administration/Procurement (CA/P) team consists of five individuals:
1. AVP Contract Administration/Procurement, who— in addition to overall accountability
for the office - has direct involvement in the following:
• Archiving, development and maintenance of procurement policies and
procedures
• Procurement activities in relation to TEX Rail
• Purchase of rolling stock using the APTA template (Senior Buyer is being trained
to take over this role)
• Procurement protests
• FTA and NTI workshops which take place every one to two years.
2. Senior buyer.
• Large and complex procurements such as construction projects
• Supervision of the Management Assistant.
3. Buyer. Smaller procurements, usually service contracts.
4. Management Assistant.The Assistant is in charge of maintaining the procurement
website and the vendor database.
5. Contract Administrator oversees contracts approved by The T's Board of Directors which
includes, but not limited to the following activities:
• Monthly DBE participation reporting for AVP of Contract Administration and
Procurements' monthly DBE Board report
• Negotiate, draft, and process Contracts for signature
• Resolve contract compliance issues
• Reviewing contractor billing and activities for compliance with contract terms
before processing payments
Procurements policies and procedures are two documents. The policies are Board approved
and the procedures outline specific processes for Contract Administration and Procurement to
follow for compliance with the policies.
While the Grants & DBE Administrator office is responsible for DBE requirements and federal
reporting, the AVP of Procurement and Contract Administrator has a role in the DBE program,
as described. In fact, Procurement is involved daily to ensure DBE guidelines are properly
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contracted and subsequently monitored. This may involve use of the Texas Unified Certification
Program (TUCP) DBE Directory, which uses about half dozen agencies to provide certification of
all DBEs within the State.
Some other organizational units within the agency indicated that they had discussions from
time to time with Procurement involving a number of matters. As best could be determined,
these discussions are a matter of planning, negotiating, and executing relationships with
vendors and doing so within federal, state and local rules and regulations. It appears that
Procurement is doing a commendable job in this regard.
The Procurement department has often had to work against ambitious deadline expectations
set by other departments. The nature of the job in Procurement characteristically puts
Procurement near the end of the project chain, and they are a critical link in getting a project
initiated.
Compared with other transit and public agencies, the contract administration process and
documentation for The T is excellent. The solicitation packets (RFPs) are well-written, clear and
complete. The service contracts are straight-forward, brief, clear and comprehensive.
Communication with the Contract Administrator is excellent.
Observation PRO-1. There are no substantive observations and recommendations that need
to be addressed by the Contract Administration/Procurement office.
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Customer Service - CUS
The T's Customer Service function is led by the Customer Service Administrator who reports to
the Senior Vice President. She has 14 fulltime employees, four part-time employees, and two
temporary employees that work at an office at the T's Intermodal Center in downtown Fort
Worth.The Customer Service department handles all calls for the fixed-route and MITS
systems, booking all paratransit trips. The group also staffs a kiosk at the Intermodal Center
that sells passes, handles lost and found, and answers customer questions; the kiosk staff can
also answer the phones.
The call center operates from 5:00 am to 10:00 pm Monday through Friday, 8:00 am to 8:00 pm
Saturday, and 8:00 am to 5:00 pm Sunday. Every six months, staff can bid for different shifts,
with the assignments based on seniority. The Administrator generally works days, but will alter
her schedule periodically to come in on evenings or weekends.
Even though the group is physically separated from the rest of The T staff, the Administrator
feels her group gets the support it needs from Human Resources, IT, and other administrative
areas. Customer complaints are logged in through an electronic system and routed to the
appropriate departments for response.
The Administrator tracks key statistics such as rate per hour and off-phone percentage for each
agent. Calls average two to two and one-half minutes, and 98% of calls are answered. They do
not track average wait time, which is relevant to ADA compliance for paratransit (see MITS
section for more detail).
Observation CUS-1. There is no designated "lead" agent or second-in-command in charge
when the Administrator is not there.
• While the staff is seasoned and competent, issues can arise that require decision-
making authority.
• With the center open 106 hours per week, the Administrator is only able to be present
to provide leadership less than half the time.
Recommendation CUS-1. Create two Lead Customer Service agents who will be in charge
when the Administrator is not there.
• Staff schedules should assure that the administrator or one of the lead agents is on site
at all times.
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Finance Functions and Accounting - FIN
Four functions report to the Chief Financial Officer— TEX Rail, Accounting, Finance, and
Procurement. The CFO splits his time among the functions, but most of his time is currently
focused on TEX Rail. Even though the Trinity Railway Express (TRE) is not formally a Finance or
CFO operation, the CFO also spends time in the management of the service. (TRE operational
matters are handled with the EVP/COD's office.) Two of the four functions comprise what is
normally considered the Finance function at a transit agency—Accounting and Finance—and
these two areas are covered here. The other two sections are covered elsewhere in the report.
The Accounting function is led by the Assistant Vice President of Accounting, who reports to the
Chief Financial Officer. The department includes 15 staff members (eleven full-time and four
part-time) who perform the following functions: performance reporting, State reporting,
National Transit Database reporting (including entering random ridership survey data), farebox
pulling and cash counting, pass sales and distribution, front desk staffing and, ticket vending
machine (TVM) servicing and minor maintenance, fixed asset accounting, general ledger,
accounts receivables (including for vanpool program, which is managed in-house), accounts
payables, annual financial and single audit oversight and all other general accounting duties.
The department works closely with almost all areas of The T, but has particularly strong working
relationships with IT and Grants Administration. Accounting relies on IT for Ellipse support,
while Human Resources and Grants Administration rely on Accounting for support of payroll
function (which resides in Human Resources), tracking and review of the federal and state grant
expenditures.
The Finance section handles investments, cash management, budgeting, and variance analysis.
It includes two staff members—the Assistant Vice President for Finance and the Budget Analyst,
with outside support provided by investment advisors and fuel futures consultants. The group
also creates and maintains the agency's long-range financial plan (which currently extends to
2035). This plan leads to the annual budget.
The Finance staff works closely with all departments by virtue of its budget function. Finance
provides Operations with an estimate of the operating budget each year, and Operations and
Planning then determine the service plan for the year. The group relies on support from IT, Risk
Management, and Operations.
The Accounting and Finance functions perform their functions effectively and efficiently. The
Accounting and Finance sections of the Finance Department are led by competent and
experienced staff. The department provides the other departments of the agency with the
support they need to perform their own functions.
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General Counsel - GEC
The T General Counsel's office consists of two professionals—the General Counsel and an
individual who serves as a paralegal. The organizational chart shows the incumbent reporting
to the Board of Directors and coordinating activities with the President/CEO and Executive
Assistant/ Board Liaison.
The responsibility of the General Counsel is to "...protect The T's legal interest and maintain its
operations within the scope established by applicable laws." This primary legal role extends to
the following areas:
• Providing legal counsel to the Board of Directors, President/Executive Director, and
senior staff
• Identifying and analyzing legal issues, drafting key documents, presenting
recommendations, and assuring legal compliance
• Negotiating, drafting, and reviewing proposed contracts, leases, formal agreements, and
other legal instruments which include researching and providing legal opinions,
selecting and managing relations with outside counsel and other agency counsel
• Managing litigation
• Ensuring The T's operations and Board of Directors meetings are conducted in
compliance with all relevant statutes. (There are five committee meetings and one
Board meeting per month.)
As in most General Counsel offices, budgeted funds are available to cover a) internal operations
(salary, benefits, supplies, etc.) and b) some estimated level of external counsel, which may or
may not be needed. In the case of The T, the total General Counsel's budget is$400,000,
although there is considerable flexibility to retain outside counsel depending on need. External
counsel typically handles items such as union contract law, torts, eminent domain cases, and
procurement protests.
In recent years, the incumbent has been assigned responsibilities for the following related
activities:
• Real property acquisition, disposition, and relocation in accordance with the Uniform
Act
• Drafting agency Real Estate Policies and Procedures and the Advertising Policy that was
approved by the Board
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The paralegal handles the vast majority of these extensive real estate-related activities,
exclusive of TEX Rail, at this point in time.
The General Counsel supports or otherwise works closely with the Board of Directors, Executive
Staff and Senior Administrators, Finance and Accounting, Procurement and Contract
Administration, Planning, Project Management, Information Technology, Human Resources,
Grants, and Risk Management. In this regard, the General Counsel has widespread contact with
key staff throughout the agency on a large number of matters. External to The T, the General
Counsel maintains contact with more than a dozen associations and sister agencies, from the
Southwest Transit Association Law Conference to the International Right of Way Association.
These activities include conference attendance, presentations, attending webinars, etc. which
are helpful in keeping abreast of other transit properties' operations. It is noted that Texas
does not have the resources to establish and maintain a lawyer committee within the Texas
Transit Association, which inhibits inter-agency communications to some degree.
Observation GEC-1. The General Counsel's office is concerned about data security and
confidentiality of electronic communications.
• The office lags some transit properties in terms of electronic media and in its use in legal
matters.
• The General Counsel's office and the Human Resources department are most in need of
improved IT support, according to staff.
Recommendation GEC-1. If IT resources allow, the IT department should assign an individual
who is dedicated (but not necessarily exclusively) to overseeing the technology components
of General Counsel and Human Resources communications.
• This approach would limit access to a single IT individual that would serve these two
particularly sensitive functions.
• The feasibility of this approach will need to be judged by the IT Manager and the
availability of staff to comply with the avowed need.
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Grants/DBE Administrator - GRT
The Grants & DBE Administrator reports to the Senior Vice President for routine daily matters
dealing with grants and directly to the CEO in his role as DBE Administrator, as required by
federal law.
The incumbent applies for and manages grants—mostly FTA formula grants--but he also looks
for and pursues discretionary grants as well. The T currently receives funding though New
Freedom, JARC, and the Bus Liveability program for a bike share program.The Grants
Administrator also manages the FTA Triennial Audit process every three years. In the role as
Grants Administrator, he works closely with Project Management, IT, Planning, Security, and
any other areas seeking project funding. The VP of Accounting provides a review function for
the grants administration. The FTA found no deficiencies in grants or the DBE program at The T
–or, in any other matter- in its most recent triennial report. This level of compliance is unusual
and deserves commendation.
The Grants Administrator is responsible for making application for, ensuring the
appropriateness of grant administration and management, and closing out grants. He has
'cradle to grave' responsibility for grants administration, including e-communication with the
FTA grants clearinghouse (ECHO). About 70% of the incumbent's time is spent on
grantsmanship.
In the DBE Administrator role, the incumbent's primary relationships are with Procurement,
Project Management, and Planning. The administrator works on outreach to potential DBE
contractors in addition to monitoring compliance with the T's DBE goals. The Grants & DBE
Administrator was involved in TEX Rail in the early planning and design stages, and may be
again when construction begins. Staff routinely attended applicable meetings and interfaced
with other staff involved in TEX Rail who were The T and/or The T-related staff and with
external stakeholders.
The percent goal for DBE vendors "depends on the time of year," implying a 'running total' of
how close The T is to meeting goals at any point in time. As needed, objectives are fine-tuned
and/or specific goals are altered primarily by a committee of three: DBE Administrator,
Procurement, and the appropriate Project Engineer or Manager. In setting its own goals (per
FTA guidelines), The T identified goals of 20%for each of 2011, 2012, and 2013. On occasion, a
small business procurement may be substituted in lieu of a DBE.
All claims for registration as a DBE are evaluated though the North Central Texas Regional
Certification Agency, which provides a similar role for many public institutions in the region
such as the DFW airport, DART, and the City of Fort Worth. This minimizes the role required of
The T in DBE certification.
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Observation GRT-1. The T has no specific DBE outreach objectives.
• It is difficult to measure whether the incumbent's outreach efforts are sufficient.
• If utilization exceeds the stated goal for the year, then the presumption is that outreach
efforts are sufficient. If not, a need for more outreach may be assumed.
Recommendations GRT-1. Develop specific objectives for the number of DBE firms or
percentage of DBE effort to be contracted in a given year.
• While The T currently meets its DBE contracting goals, having specific outreach
objectives would ensure that it can prove the sufficiency of its outreach efforts in the
event that it falls short of its contracting aspirations in a given year or on a given
procurement.
• By knowing how much outreach is expected and/or needed, the DBE Administrator
could more effectively budget his time and efforts on outreach throughout the year.
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Human Resources - HRD
According to The T organizational chart and listing of key positions, the Vice President (VP)
Human Resources is one of nine Senior Staff: President/ED, General Counsel, Director of
Administration, TRE COO, EVP/COO, Senior Vice President, VP/CFO, VP of Project Management
and VP Human Resources. As such, the head of Human Resources operations carries the rank
of Vice President and thus participates in executive and leadership discussions and decisions.
Highlights of various policies, procedures and issues of HRD
Communications between HR staff and the employees is perceived in some areas as
inconsistent. Policies, procedures, and objectives for increased communication are in place but
can always be improved upon. Since HR's primary customers are the employees, the unit may
be expected to be strongly customer-focused, which some believe is not the case. Further,
there is room for improvement in communications between certain FWTA units and outside
stakeholders.
Further, there are HR personnel who feel that employee relations has deteriorated from prior
years, and the void therein has had to be filled by others, most notably the EVP/COO. In fact,
consistent, appropriate communications up and down The T communications chain, as well as
laterally across departmental lines, are lacking. It is the perspective of some employees— both
inside and outside the HR Department -that such communications are handled outside HR or
not at all. However, The T's Benefits Specialist has a communication plan that is updated yearly
to focus on changes to the organization's programs and benefits.
Turnover in HR has been a recurring problem due to a lack of 360 degree training as in prior
years, employee dissatisfaction with the direction HR is headed, and/or the nature and extent
of services it is providing. In fact, HR does not have a mission statement, although one has
been drafted. It was noted that it has been "in process for a year and needs to be vetted by
Senior Staff."
There is an opportunity to enhance internal performance management, although there is no
'system' or process in place. Some elements are tracked and a few are reported, however.
None appear in the Monthly Performance Report, which focuses on operations and finance
exclusively. All of The T's stats are discussed internally within the HR department on a monthly
basis.
'Low wages' are mentioned infrequently among The T employees. Also we heard nothing about
the quality of benefits, which would seem to be excellent. The T's retirement program is as
follows:
Employee contribution = 0% and Company Match is 3%
Employee contribution = 1% and Company Match is 4%
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Employee contribution = 2-3%and Company Match is 5%
Employee contribution =4% and Company Match is 6%
As can be seen, the retirement system is not longevity based; rather, it is based on the level of
employee contribution. It is an unusually robust system for a public agency.
Primary daily functions of HRD staff
The VP of HR is responsible for planning, organizing, developing, implementing, directing, and
coordinating all the activities of the Human Resources Department including but not limited to
recruitment, organizational development; benefits and compensation; formulating and
recommending policies and procedures; human resources management; and ensures full
compliance with applicable laws, labor contract, and developing, implementing and evaluating
ongoing strategic Human Resources functions, goals and objectives
The VP Human Resources has four direct reports, per below, and a total of 7.5 positions:
1. Payroll Specialist
2. Benefits Specialist
• Leave Specialist
3. Human Resources Manager ("generalist")
• Hiring Coordinator
• HR Assistant (25 hours/week) — validates accuracy of data entry; maintains all
filing
4. Health & Wellness Manager
Payroll Specialist
Processes biweekly payroll, including responsibility for quarterly reports, year-end reports, (all
payroll tax requirements) and W-2's. Payment to employees is made via direct deposit/or
paycard.
Benefits
Manages all employee benefits in collaboration with an external broker. This program ensures
that employees understand benefit programs by regularly generating ongoing communications,
presentations and counseling to employees and their dependents as situation arises. The HR
Department also periodically publishes "The News: News, Events, Wellness, Safety," an
employee newsletter for employees.
HR Manager (Generalist)
The incumbent's responsibilities include:
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• Supervising the Leave Specialist and leave program
• Hiring Coordinator
• Maintenance of file room
• Special projects, such as succession planning, operational handbook, individual
performance audit system, unemployment claims, and counseling
• Oversight of drug and alcohol third-party vendor and the third-party vendor for worker's
compensation
• Maintains all employee files (Assistant)
• Audits data entry results from Ellipse (Assistant)
• Assists other specialists as needed (Assistant)
Recruitment
Recruitment process includes handling background checks, employee and applicant screening,
and assisting managers with filling vacancies.
Health and Wellness
Health and Wellness Manager oversees The T's wellness program to provide The T employees
with an environment conducive to a healthy and productive workforce.
Training
Training within The T— including McDonald Transit—is coordinated through the Human
Resources Department. Training has two primary components:
• HRD provides administrative training which includes introductory levels of safety, drugs
and alcohol prevention, ethics issues, authority benefits, customer service, etc.
• Operations (McDonald Transit) handles operator technical, other technical, and similar
training.
Observation HRD-1. Communications up and down and across the chain of command is the
subject of criticism. This is particularly noted by the HR Department, some of whom have
extensive contact with employees at all levels and feel a strong need to address the issue.
• Little attention is paid to the development and implementation of an HR based
communications program —a program that is driven by HR's ability to reach out
consistently and frequently to employees. Successes in this regard would seem to be
due to the individual effort of a select number of HR staff rather than through a
Department-wide initiative.
• The communications issue inhibits a strong internal customer-focused initiative in an
important unit that serves every employee on the property.
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Recommendation HRD-1. Improved communications with The T should be an agency-wide
effort.
• The HRD is in a strong position to identify communications issues, initially assess them,
suggest improvements therein, and recommend solution options to senior
management. Following internal vetting, executives and managers should then
encourage widespread acceptance of communications improvements throughout the
Authority.
Observation HRD-2. An HR performance management system does not exist except
sporadically. As noted elsewhere, performance indicators are not reported on a wide-spread
basis, i.e., at the executive and Board level on a routine basis.
Recommendation HRD-2. Increased focus on the creation of performance indicators and
Authority-wide reporting is needed.
• The Monthly Performance Report is an excellent vehicle to report basic personnel
activities and results so the Executive Staff and Board can understand the shifts in
perspective and concerns of the employee base, as well as selected external drivers
such as compensation and benefits and labor availability.
• Selected examples of human resource performance indicators might include the
following:
o Turnover ratio by department or primary function
o Days to process application / make a hiring decision
o Attendance records by unit
o Grievances settled
o Compensation vis-a-vis peer agencies
o Individuals trained by curriculum
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Information Technology - INT
The T's Strategic Plan, as presented in the 2013 Business Plan for the Authority, lists three
"overriding" goals:
• Transportation— related to the development of Tarrant County's public transportation
system.
• Timeliness— related to both the on-time performance of the system and the delivery of
transportation projects on schedule.
• Technology— related to the effective leverage of information technologies to improve
both the customer experience and operational efficiency.
More particularly with respect to technology, The T seeks to:
• "Use new technologies to improve services, communicate with customers, and bring
more customers to existing services,
• Utilize technology to increase efficiency within the organization,
• Integrate region-wide transit modes."
The Information Technology Department, organized under the direct supervision of the
Executive Vice President/Chief Operating Officer, has the lead responsibility for the execution
of the technology-related objectives of the organization, working as an internal support
function to the operating and staff units of the Authority. Other internal support functions
included within this group included Security, Risk and Safety Management and Property
Management.
Led by an Assistant Vice President, the Information Technology Department is responsible for
the development, maintenance and support of The T's technical infrastructure, operation of the
technology help desk, applications software and database support, telecommunications,
technology project management and new product implementations. The Department of
Information Technology is authorized nine full time positions, of which seven are currently
filled, as follows:
• 1 Assistant Vice President
• 3 Project Coordinators supporting the T's major enterprise application systems
o Ellipse core enterprise resource planning functionality
o Trapeze operations, scheduling and dispatching functionality
o Passenger information, ticket vending and access control systems.
• 1 Technical Services Coordinator staffing the internal help desk
• 1 Network Administrator supporting all aspects of the technology infrastructure
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• 1 Systems Administrator primarily focused on database and operating system software.
The two unfilled positions were assigned to supporting the T's administrative software package,
Ventyx Ellipse.Those support activities are now outsourced to a company called AddOns, Inc.
Among the major business systems and software applications supported by the T's Information
Technology Department are the following:
• Ventyx Ellipse (formerly Mincom) enterprise resource planning
o Finance/Accounting
o Asset Management
o Purchasing
o Human Resources
o Payroll
o Benefits Administration
o Maintenance.
• Trapeze Systems
o Planning and scheduling
o Dispatching (fixed route and paratransit)
o Maintenance Scheduling.
• NextBus passenger information system
• Genfare CENTSaBILL farebox
• Genfare Vendstar ticket vending machines
• Win-Pak access control system
• Fleetwatch fuel management
• Verint video system
• Dell KACE help desk software
• VMWare storage area network/server virtualization software
• Orion network monitoring
• Appassure backup and replication software
• Database software
o Oracle 10g and 11g
o Microsoft SQL Server 8 and 9
o Sybase
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o MS Access
• Microsoft Exchange 7 (email)
• Windows XP and 7 desktop
• Microsoft Office 2007
• ShoreTel VOIP phone system
• Oaisys call center recording
• Motorola radio system
The major technology goals established for fiscal year 2013, as shown in the adopted budget
and business plan, are as follows:
• Complete conversion of company desktops to Windows version 7
• Implement an automated timekeeping system
• Implement a disaster recovery/ business continuity plan and site
• Complete the MITS mobile data terminal upgrade
• Enhance the IT support infrastructure
• Implement the Trapeze Sign In Terminal software module
• Implement Interactive Voice Response System.
• Install new passenger information signs at TRE stations.
Observation INT-1. The T lacks an up-to-date information technology strategic plan.
• No formalized, adopted and approved long range technology plan currently exists. The
Director uses an internally-developed listing of technology projects and needs which is
used within the context of the annual budget process to establish technology spending
priorities on a year to year basis. Many such projects do involve funding requirements
over multiple years.
• The T's executive staff meets for an annual planning and goal setting retreat and this
venue is used to secure input into technology needs and priorities from the perspectives
of the various operating units of the Authority.
Recommendation INT-1. Develop a comprehensive information technology strategic plan.
• An effective IT strategy focuses on alignment of IT project and spending priorities with
the demonstrated business needs of the operating units.
• The technology plan should address both infrastructure and application needs of the
Authority over the next three to five year timeframe and should be developed as a
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collaboration between the Information Technology Department and the customer
business units.
• Important elements of a comprehensive strategic plan for information technology
include:
o A clearly articulated information technology vision and mission, clearly linked to the
overall vision and mission of the The T.
o Strengths, weaknesses, opportunities, threats (SWOT) analysis in terms of the
application of information technology to addressing known and future business
requirements.
o An "environmental scan" of current and emerging issues and trends.
o A thorough technology needs assessment, including documentation of both the
current state and the desired future state of the enterprise from a technology
perspective.
o Prioritized listing of IT initiatives needed to close the gap between the current and
future states.
o Business case documentation of the expected benefits and costs of each proposed
initiative.
o An implementation roadmap identifying dependencies, sequencing of initiatives and
projected costs and other resource requirement.
• The process of developing the plan should be highly collaborative and should include
significant engagement with users at all levels of the Authority. The Authority should
consider contracting with a third party consultant or firm to facilitate development of
the plan to provide an independent perspective and skilled and experienced resources
to the table.
Observation INT-2. The T lacks a structured information technology governance model or
policy.
• As defined by the Gartner Group, Inc., a widely respected and often-cited technology
research and consulting organization, information technology governance encompasses
"the processes that ensures the effective and efficient use of IT in enabling an
organization to achieve its goals." An effective IT governance model helps the enterprise
ensure the accountability and responsiveness of the technology organization itself,
drives compliance with technology standards, rules and regulations, focuses
investments on the needs of stakeholders and enables the management of technology-
related risks and the control of IT projects. (SOURCE: Gartner, Inc., IT Glossary, IT
Governance, http://www.gartner.com/it-glossary/it-governance/)
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• Despite the prominence of information technology as one of the top three focus areas
in the Authority's strategic plan, the Assistant Vice President is not organized as a
member of the executive management team and is classified at a lower level than the
heads of other mission-critical support functions such as Finance and Human Resources.
• No Information Technology Governance Committee or steering group, comprised of
senior members representing the operating units of the Authority, exists to review and
prioritize IT investments and budget requests for conformance with Authority business
goals and standards.
• Although the Information Technology Department has internally developed technology
standards for such things as supported database platforms, operating systems, desktop
productivity software, personal computers, mobile devices, etc., these standards do not
appear to be formally adopted nor are all technology investments required to conform
or seek a formal waiver from the Governance Committee.
• No standardized technology selection process, implementation project management
methodology or change management protocol have been documented, adopted and
deployed.
Recommendation INT-2.1. Develop, adopt and deploy technology governance structure and
policy.
• Various IT governance frameworks have been developed and are available in the
marketplace. Among the best known are ITIL (IT Infrastructure Library) and CoBIT
(Control Objectives for Information and related Technology.)
• The establishment of an IT Governance Committee, comprised of senior representatives
from key customer departments, is an important aspect of establishing effective
governance and should be one of the first steps in establishing the governance model at
The T.
• According to the IT Governance Institute, the fundamental concerns of IT governance
are "IT's delivery of value to the business and the mitigation of IT risks." They have
further identified the following key components of effective information technology
governance: (SOURCE: IT Governance Institute, Information Systems Audit and Control
Association, Board Briefing on IT Governance, 2nd Edition, IT Governance Institute,
2003.)
o Aligning IT strategy with the business strategy
o Cascading IT strategy and goals down into the enterprise
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o Providing organizational structures that facilitate the implementation of strategies
and goals
o Creating constructive relationships and effective communications between the
business and IT, and with external partners
o Insisting that an IT control framework be adopted and implemented
o Measuring IT's performance.
• Best practices in effective IT governance include, but are not limited to, the following:
o Position the CIO as a strategist who resolves business issues with information
technology
o Use an IT governance committee to oversee IT strategy and policy decisions
o Focus on optimizing alignment between business strategies and IT investments
o Inform business unit managers on the rationale behind IT policies and of emerging
technologies
o Monitor and report on the progress of the IT strategic plan
o Wherever possible, standardize common applications across departments and use
off-the-shelf software whenever possible
o Ensure that IT costs and cost recovery methods are transparent and clearly
communicated
o Use formalized project management, change management and project review
processes
o Use service level agreements (SLAB) as formal contracts between the Information
Technology Department and operating business units, and report on performance
metrics specified in the SLA.
o Use policies, procedures and clear authorities to manage change.
o Develop strong and broad staff competencies.
o Recognize the customer as an important resource.
o Measure performance and use the results to initiate improvements and change.
Recommendation INT-2.2. Apply a structured project management methodology including an
integrated approach to cultural change management.
• A formally documented project management methodology is necessary for the
Information Technology Department to drive repeatable, efficient, timely, accountable
and less risky delivery of technology solutions with high levels of customer satisfaction.
There are many project management models described in the professional literature,
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the most widely accepted being that described in the Project Management Body of
Knowledge (PMBOK) promulgated by the Project Management Institute.
• Each IT project should begin with the development of a written project plan, a task and
milestone delivery schedule, resource assignments and a detailed written charter
defining the project scope, expected benefits, deliverables and deliverable acceptance
criteria, change control protocols and the roles and responsibilities of all participants.
This plan should be prepared and submitted to senior management for approval and
then serve as the benchmark for the monitoring, measuring and reporting on project
progress.
• Each enterprise IT project should also have a planned and structured cultural change
management program embedded in the project plan and dedicated change
management resources assigned to the project team. Not to be confused with "change
control" —the management of modifications to project scope and contractual provisions
—cultural change management addresses the so-called "soft side" of the transition to
new processes and technologies. It is focused on supporting people through the change
process by addressing their need to understand the reasons for the process or
technology change, understand how the change will affect them in their jobs and,
ultimately, to accept and commit to the adoption of the new systems and procedures.
The T should consider development or adoption of a standardized change management
methodology such as the Prosci ADKAR (Awareness, Desire, Knowledge, Ability,
Reinforcement) or John P. Kotter's 8 Step Change Model, to build out its change
management approach in more detail.
Recommendation INT-2.3. Ensure that the information technology organization is consulted
and directly involved in all technology procurements.
• The T management should establish, by policy, that every enterprise class technology
project in the Authority should be subject to the evaluation processes and
implementation methodologies established by the Information Technology Department,
as defined and approved by the Governance Committee.
• A Technology Project Manager should be assigned to each project, along with a business
/functional team leader, to direct each such project using a defined and documented
technology selection, implementation and change management toolset.
• All purchases of technology products and services should be subject to required
advanced consultation with the Information Technology staff, review for conformance
with adopted standards and approval prior to purchase order execution or contract
award. Any deviations from approved standards, policies and procedures should be
reviewed and approved by the IT Governance Committee.
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Observation INT-3. A comprehensive business continuity and disaster recovery plan has not
been finalized and implemented.
• The development of a comprehensive business continuity and disaster recovery plan is a
stated priority of the AVP for Information Technology. The Authority has established a
remote backup site at the Intermodal Transportation with dedicated fiber connectivity
to the main data center at the Hershel R, Payne Transportation Complex and is
performing regular backup of critical systems and data. In a related realm, an updated
draft of an information security policy has been drafted and that draft is pending final
review and approval.
• Disaster recovery planning is a subset of business continuity planning and addresses the
processes, procedures and technologies required to restore the critical business systems
of the Authority to full operation in the event of a major disruption, either man-made or
natural. While disaster recovery is focused on the ability to rapidly restore critical
systems to functionality, business continuity considers the longer term needs and
effects on the operation of the entire enterprise.The Authority's Risk Management
function "owns" the responsibility for business continuity planning, with information
technology leading in the disaster recovery realm.
• The Government Finance Officer's Association (GFOA) has issued best practice
statements on business continuity planning and disaster recovery, and these document
the essential elements of each. These are available online (www.gfoa.org) and are titled,
respectively, "Business Preparedness and Continuity Guidelines" and "Technology
Disaster Recover Planning."
• With reference to IT disaster recovery planning in particular, the GFOA recommends
that, "every government formally establish written policies and procedures for
minimizing disruptions following resulting from failures in computers or other advanced
technologies following a disaster. These written policies and procedures should be
evaluated annually and updated periodically, no less than once every three years."
• Using this definition and standard,The T does not currently have a formally documented
business continuity/ IT disaster recovery plan currently in place that would give The T
reasonable assurance that it could quickly and reliably restore operations in the event of
a catastrophic event.
Recommendation INT-3. Develop and execute a comprehensive information technology
disaster recovery and business continuity plan.
• Information Technology and Risk Management should collaborate on the preparation of
a detailed business continuity plan that addressed all aspects of the Authority's business
operations and services, including but not limited to information technology disaster
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recovery. That plan should define and document the specific actions and procedures
required to return the business and/or component parts of the business to full
productivity following a service disruption, natural or manmade disaster in the most
efficient and timely fashion possible.
With respect to information technology disaster recovery, the GFOA recommends the
following minimum standards.:
o Formally assign disaster recovery coordinators for each agency or department to
form a disaster recovery team. The responsibilities of team members should be
defined and a current list of team members and their telephone numbers should be
maintained.The government should also establish procedures for assembling the
team in the event of a disaster.
o Require the creation and preservation of back-up data. A government's procedures
in this regard should cover the regular and timely back-up of computer data (with
proper documentation) and the transportation and storage of back-up data off-site
(with proper documentation). The government should also ensure the security of
back-up data both during transport off site and during storage off site.
o Make provisions for the alternative processing of data following a disaster. A
government should enter into a contract for the alternative processing of data
following a disaster. It is essential that the government carefully monitor software
upgrades to ensure that any such alternative processing site remains capable of
processing the government's data. A government should also establish processing
priorities should the use of the alternative processing site become necessary. In
addition, in situations qualifying for federal emergency assistance, it is essential that
the government be capable of providing information to the federal government in
the format mandated by the Federal Emergency Management Agency.
o Provide detailed instructions for restoring disk files.
o Establish guidelines for the immediate aftermath of a disaster. Specifically, the
government's computer disaster recovery plan should provide guidelines for
declaring a disaster, for issuing press releases and dealing with the media, for
recovering communications networks, and for assessing damage.
o Keep copy off-site. A copy of the government's formal computer disaster recovery
policies and procedures should be kept off-site to ensure its availability in the event
of a disaster.
o Periodically test the plan. Every government should annually test its computer
disaster recovery plan, including communication within the disaster recovery team,
and take immediate action to remedy deficiencies identified by that testing. It is
essential that such testing encompass the restoration as well as the processing of
the government's data.
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o Determine adequacy of outsourced services. A government also should satisfy itself
concerning the adequacy of disaster recovery plans for outsourced services.
• The AVP for Information Technology should be responsible for the preparation of the
technology disaster recovery component of a comprehensive business continuity plan,
with the assistance and support of outside consulting resources as needed.
Observation INT-4. The Ellipse enterprise resource planning software product is not fully
functional.
• In approximately 2003-2004,The T selected and implemented the Ellipse software
application package to support the Authority's core administrative needs including
finance, purchasing, asset management, maintenance, human resources, benefits
administration and payroll.
• Mincom Ellipse (now Ventyx Ellipse) was selected over the competing proposal of
PeopleSoft/ MAXIMUS FleetFocus for a cost of$2.5 million. Annual maintenance fees in
the range of$91,000.
• The Ellipse product suite has never functioned to the full satisfaction of The T. There are
past due Ventyx invoices totaling just over$374,000 dating back to July 2011 that are
still open pending final resolution of outstanding issues. These issues relate to training,
missing/ incomplete documentation, reporting, system performance and outstanding
work orders/trouble tickets. Additionally, Ventyx customer support is reported by
users as non-responsive.
• Users across the Authority report varying levels of dissatisfaction with the functionality
and performance of the procurement and human resources modules, although there
has been improvement since the last software upgrade. Employee self-service
functionality is licensed but not deployed, and the Business Objects reporting tool is not
used to its full potential, with some users preferring Microsoft Access as a substitute
reporting solution.
• Although the Authority has experienced 10 years of frustration and reported under-
performance of the Ellipse product, no active plans exist to specify, evaluate and acquire
improved systems. Notwithstanding the fact that cost is seen as the primary constraint,
resolution of some of these issues is likely to require additional consulting fees and
expenses.
Recommendation INT-4. Initiate the planning, evaluation and selection process for
replacement of the Ellipse enterprise resource planning software package.
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• A cross-functional team of business unit representatives and technology staff should be
established to initiate planning for an ERP system replacement.
• A detailed needs assessment, requirements gathering and business case development
process should be undertaken. This will involve the examination of each core
administrative business process and the identification and prioritization of functional
requirements for each.
• Business and technical requirements should be developed for each business process
function, system interfaces, the underlying support technology and the implementation
and support of the system.
• Once the business requirements are completed, the Authority should undertake a
detailed software selection process to replace the existing Ellipse package. The selection
process should include the detailed requirements developed above as well as the
following key steps:
o Creation of a detailed RFP for software and implementation services.
o Release and support of the RFP.
o Evaluation of vendor proposals.
o Creation and execution of a detailed demonstration process including
demonstration scripts/scenarios.
o Detailed vendor reference checks and site visits
o Contract negotiations with successful vendor(s)
o Consider engaging an outside consulting firm to assist The T with the selection of
new software and in supporting the implementation of the selected replacement
solution. A third party firm provides vendor independence, current knowledge of the
marketplace, experience and expertise in designing effective evaluation processes
and practical knowledge of the implementation of similar software.
Observation INT-5. Existing IT staffing levels are only marginally adequate to address current
and expected workload effectively.
• The T's Information Department is authorized nine full time personnel. Seven of these
positions are presently filed, with the Ellipse technical and functional support roles
previously allocated to the two vacant positions now outsourced.
• This number of allocated technology staff is below industry benchmarks reported in the
most recent Gartner IT Key Metrics Data, 2013 IT Enterprise Summary Report. That
report shows that, on average, organizations in the transportation industry devote 3.1%
of their staffing resources to information technology functions. The same report
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indicates that state and local government organizations average 3.6% of their
headcount dedicated to IT staffing. Using an employee base of 559 including contract
staff, these measures suggest a range of technology staffing between 17 and 20 FTE for
The T, or eight FTE understaffed on the low end. If contract staff, few of whom require
IT support, are discounted, the supported estimated IT user base for this analysis is
closer to 250. Using this as the basis for application of the staffing average, the
computed staffing range becomes 6 to 9 technology personnel.
• We also applied another source to estimate a likely range of IT staffing needs based on
the "labor intensity" of the organization's technology environment. ("The Five Pillars of
IS Organizational Effectiveness," S. Mingay, J. Furlonger, F. Magee and E. Andren, The
Gartner Group Strategic Analysis Report, November 1998.) Using the labor intensity
model included in the report, we evaluated The T's technology staffing requirements as
falling at a "moderately intensive" level, suggesting IT staffing in the 3 - 5% of the
supported user base. With 280 desktop computers serving as the measure of the size of
the supported user base, a staffing requirement of 8 - 14 FTE results, suggesting that
The T is below the range of appropriate staffing and could be as many as 5-7 FTEs low.
Recommendation INT-5. Increase the authorized staffing of the Information Technology
Department, over time and as resources permit, to a minimum of nine full time personnel.
• Discussions with the AVP for Information Technology and members of the IT staff tend
to confirm a moderate need for additional personnel.The most pressing need cited is
for increased staffing of the Help Desk function. The second-cited area of need is
network support. An additional position is recommended for each of these areas.
• Longer term, and in light of the current workload and expected future expansion of the
system, additional focus on intelligent transportation system technologies and the
recommended replacement of the Ellipse ERP we suggest that The T begin to enhance IT
staffing levels as a high priority need as resources permit. We further recommend that
the staffing additions focus on professionals with strong business analysis skills and
experience in the deployment of large-scale management information systems. Key skill
set needs for the immediate future of The T include the support of complex business
applications systems such as the Oracle E Business suite, business intelligence and data
analytics and IT project management.
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Marketing - MKT
The Marketing Department consists of six staff members supported by two vendors, for an
annual budget of about$1.3 million. The Assistant Vice President for Marketing leads the
department and reports to the Senior Vice President.
The department handles marketing, advertising, promotions, graphic design, special events,
web site maintenance, community outreach, communications, social media, public and media
relations, distribution of maps and schedules to outlets, employer pass sales, and transit
advertising sales management. One vendor handles advertising of the T (marketing the T); the
other vendor sells advertising for the T (ads on buses and benches). Materials and programs
created by the department are professional and creative.
The Marketing Department reports its internal customers to be Planning, Scheduling, Executive
Office, Accounting, Human Resources, and Operations. It in turn relies heavily on Information
Technology, Procurement, and Maintenance to accomplish its mission. The AVP reports
receiving excellent support from these areas and feels the cooperation between departments
in exemplary.
The department does periodic join promotions with DART and Denton County Transportation
Authority(DCTA) developed though a regional marketing committee. These external
relationships appear to be positive and productive.
Observation MKT-1. The Marketing Department does not establish specific ridership goals for
its promotions.
• The Marketing Department examines trends in system-wide ridership to help monitor
its effectiveness.
• The Marketing Department also uses statistics such as number of media events, social
media statistics, and other activity-based measures as performance indicators.
Recommendation MKT-1. Establish ridership goals for specific marketing programs to help
assess effectiveness.
• Clearly, many factors other than the marketing program effect ridership on specific
services or for specific markets.
• Establishing goals and measuring ridership response is still the best way of determining
if marketing and advertising dollars are well spent.
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Mobility Impaired Transportation Service - MITS
The goal of the MITS paratransit review is three-fold:
1) To evaluate the management of The T's Mobility-Impaired Transportation Service (MITS)
in meeting demand for service,
2) To evaluate the support provided by the administrative departments of The T to MITS,
and
3) To evaluate compliance with relevant statutes, principally the federal Americans with
Disabilities Act (ADA).
To complete the evaluation, the TransTech team has reviewed and assessed the following:
• Organization structure
• Key performance indicators
• Compliance with ADA requirements
• Eligibility certification practices and trends
• Reservation, scheduling and dispatching practices
• Customer service policies and practices
• Call center operations
Each of the above items is reviewed in turn, including findings and recommendations, as
appropriate.
MITS Organization and Management
The MITS Mission cited on the website and contained in the Rider's Guide states:
MITS will provide customer service as our first priority by delivering safe,
courteous and dependable transportation services that respond to the ever
changing needs and independence of our mobility impaired customers.
The MITS organizational chart is presented below.
The MITS Administrator is also serving as the Interim AVP for Special Services; the MITS
operation reports to the Manager of Transportation.
MITS management staff, operators, and maintenance work for the McDonald Transit.
MITS also contracts with five vendors for supplemental service. The contractors are Gold-N-
Star, Metro Charter Tours, Catholic Charities, Yellow Cab, and Howard Medical Transportation.
There is a contractor liaison position who reports to the AVP of Special Services and manages
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the contracts for supplemental service, which vary by month but accounts for approximately
55% of all trips provided.
The position of AVP of Special Services is responsible for managing the operation and
overseeing the dispatchers, schedulers, and drivers. The Administrative Supervisor handles
eligibility determinations and oversees the travel training program.
MITS uses the most recent version of Trapeze software to reserve, schedule, and dispatch
service. MITS also uses automatic vehicle location and mobile data terminals to control service
on the street. The fleet consists of older Orion and newer Arboc vehicles.
Unlike most in-house paratransit operations, the reservation function does not reside under
MITS but is handled by a joint-fixed route and paratransit Call Center supervised by the
Customer Service Administrator who reports to The T's Senior Vice President. The Call Center is
located in downtown Fort Worth at the Intermodal Center, while MITS is located at the
Administration Building.
MITS Organization Chart
AVP
Special
Services
MITS (7)MITS (57) MITS
Administrator Supervisors Drivers
M ITS
MITS Scheduling MITS
Administration Supervisor Contractor
Supervisor Liaison
(2)Schedulers
(1) MITS Transit Ambassador Howard
Certification Supervisor Gold- Metro Yellow Catholic Med.
Coordinator N Star Charter Cab Charities Transp.
(1)MITSAss!stant (2)Transit
Ambassadors
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