City Commission - Regular Meeting

HDMI. Jackson

present. Very good. First item is approval of the agenda. Everyone has a copy. All right. Motion will be in order to approve the agenda. I make a motion to approve the agenda. Second. Person. Robinson. Yes. Yes.

Okay. Next item on the agenda is approval of the February and March special meeting minutes of 22426 meeting and the 313 meeting. I believe we can act on both. Motion is in order. I make the motion that we approve both uh minutes of the special meetings. Do we have copies of those? Should be in the email. In the email. Roll call. Chair Little.

Yes. Trusty Robinson. Yes. Trusty Hatchard. Yes. Trusty Jackson. Yes.

Okay. Next item on the agenda is a financial report. Um, if you're ready. Yes.

That's not what I wanted it to do. Trying to make it so everyone can see this time. All right. All right. So, we'll start where we always start with bank balances or or your cash account for February. That was $542,710.74. that is down compared to the prior month and that is down about $58,000. Um looking at our other um most noteworthy assets due from federal government was $483,58.85.

Yeah. How about that? We good?

Yeah. No problem. No problem. So, that is up compared to the prior month. And that is up roughly $113,000 from the prior month. And that is it'll continue to climb until FTA starts paying us. Um, your due from state is this number here, the $634,789.72. That is also up. Oh, I'm sorry. That's the complete number. My bad. This one right here is the 1512 8087. So, my apologies there. I grabbed the total and I wanted just this one. That is down compared to the prior month. Um, and it is down approximately rounded to a nice clean number. It's down $64,000. Um, so that's nice. The state continues to pay. Uh not a whole lot to talk about in prepaid expenses. Those are behaving normally as they should. Um fuel inventory is up in the month of February. Um what tends to happen is, you know, you'll have one month where you fill up and then the next you'll just let it drain out and then or you'll you'll use it up and then you get one big fill. So that's what happened in February. Um nothing to really report in fixed assets, right? They're behaving normally. you didn't have any additions. So the only thing happening there is your monthly depreciation gets added to your accumulated totals. Now um moving on to the liability section here. Um accounts payable was 125,586. It's up a little bit from last month. That's up about grab go down here. You're up about $12,000. Um nothing

crazy to report there. There's nothing like um there wasn't a huge addition. Just a little bit more payables.

It's just the it's the difference here. So the 125 compared to last month which was the 113. So that's that's up about 12. That's where that's coming from. Um, that pretty much runs through what you needed to know with the balance sheet. So, let's move along to Scroll down. Oh, it's right in there. Perfect. Perfect.

Let's move along to the P&L. All right, here we are. Let me switch here so I can get my comparisons ready. All right. jump down here. Here we go. There we go. All right. So, your passenger fairs is in total for the year from October through February. That's $75,7749. So, that is performing favorably with the prior year. You guys are up about $9,000 in your passenger fairs from the last year. So from month to month there's a little bit of volatility but it's overall it's working out better compared to the prior year for you. Local contributions are behind a bit compared to where they were at last year. So you can see here your local contributions are the $19515.15. Last year at this time we were at 39 but then again that it just right now that just comes from taxes. So, until it comes in, um, that's going to be what it's going to be. Moving along, we have our state of Michigan operating grants. That is $518,584. Um, comparing to the prior year, we are performing favorably there. We have about $65,000 more than we had in the prior year. Looking at our federal oper our federal revenue here, we've got $595,583.35. Um that is also um favorable to the prior year. Um and that favorable we have about $35,950

more than we had in the prior year. Um, so something to note here is that um, your profit and loss is always the acrruel basis, right? So it's what you've earned, not necessarily what you've received. So that's why every month we're posting um, federal operating revenue. But until we get the until we get the echo draw downs to keep coming in, that money is not actually making it into our bank account. So all these things added together come to our total income which is 1,29,67483. If you were to compare that to where you were at last year at this time, you're down 32,11. So while the federal and state revenue is performing favorably with the prior year um that the local tax revenue is down compared to where we were at and then also there was a large payment for an insurance thing that's just obviously not there this year. Moving along expenses. What I'll do here is I'll jump down to the bottom and we'll talk about the major um the major categories. So your total expenses were 1,32,19723 and that's not covering the depreciation section. We'll cover that in a bit. Um in terms of areas that change drastically from I shouldn't say drastically, but just changed noticeably from month to month. Um,

labor and benefits. So, labor and benefits in total was the 820,6958 figure here in the total column over there. Um, that is up about $20,000 compared to where it was last year. So, um, wages are up a little bit. Um something to note, uh another big change is going to be the fleet expenses. So the fleet expenses are at $263,647.95. Um last comparing that to last year, you're down about $10,000. And a lot of that comes from savings in repairs and maintenance. If you were to look at just the repairs and maintenance line, um right now we're at the 40,89549 whereas last year that number was $120,000 and again that relates to a bus accident. So that's what really that's the big swing there. Um moving along, get some other comparisons for you. other ineligibles is down a good chunk. Let's get to that for you. So, right now, other ineligible expenses, as you can see, is just the $241 for this year, whereas last year that figure was um nearly $60,000. Then again, that related that related to an MTP refund that you got. It was a retroactive refund. So that was back from the when you buyers were in the transit pool for your insurance.

Yeah. And then lastly, lastly, what we'll mention, we'll talk about is the other expenses section. So right now that's sitting at um a total of 203,59. Oh, oops. Sorry, I'm getting my columns confused again. I apologize. Um, that's $127,241. And this we're seeing a lot of savings here. Depreciation is about $62,000 less than it was in the prior year. And then also, we don't have that big loss that we had to recognize related to the various incidents throughout 2024. um you're saving about $140,000 because that was the loss that we recognized in fiscal year 2024. Um that covers all the all the big things for the financial statements. Um all the changes in your major um revenues and expenses at this time. Are there any questions on them that I can answer?

Yeah. What's up? February.

Yes, it comes to the end of February. Yes, it'll have Yeah, it'll have March on there basically. And I Teresa can correct me if I'm correct me if I'm wrong here, but I think what will happen is you'll see a much bigger uptick in your contracted services and then there are still vendors that you'll hold on to and VIA will reimburse you for and then so there so what I would say is you'd see a big large uptick in the contracted services and then your other expenses should fall.

I imagine if this helps answer your question as well that the format will stay the same because we have these things on the fiscal year from earlier in the year. So, we'll still have the line item for some things um like bus maintenance even though VIA will be doing the bus maintenance.

Does that make sense? Does that answer your question? I've been trying to claim determine what we need from terms of what was that we just Um, Jack, would you like to answer that? Give me just a moment.

Sorry. Hold on. I think I got to turn you up.

All right. Sorry, Jack. Try again. Oh, I know what it is. No, I don't. Go ahead. Can hear you and I can hear you. I'll just do this. We Hold on, guys. I don't want to end the meeting. Come on.

Okay, now try. Okay, now try. Can you hear me now? Okay. I was just saying I don't want to, you know, speak to how your financial reporting will look, but just in terms of, you know, how how the finances work with um it's just

I don't know why it won't go through the other speakers. We just do like a test test.

It's probably as good as we can get it at the moment. So you you can't hear us. It's just not coming through the big speakers. Got it. Have you checked the sound output? Yeah, I have. sound output. I've gone back and forth to the options it's giving me and it's not

changing it. Did you get it? Do the best I can.

Do the best I can. They're they're going to need some kind of breakdown. I don't know what's up on my question. I asked the question as to this report that we now get from Hunger Force when now that VIA is taking over as of April. What kind of report are we going to be getting to distinguish the difference of what they're doing? Yeah, but I don't hear him. can change. Sounds like him and Oliver talking. Sounds like him and Oliver. Yeah. Go ahead and and try talking one more time, guys. It's not going to be perfect, but I put my phone over by them, so hopefully they can hear.

Not really, but talk loud.

Talk loud. I can't speak to what the financial, you know, your own financial reporting will look like. That's totally up to you guys and how you want to do your financial reports. Um in terms of of the relation with VIA, it will be quite straightforward in terms of you guys pay us on an hourly rate um for our services and then that hourly rate encompasses all the you know expenses that we make and so we have our own kind of internal ways of of doing that. But what you should probably only see on your sheet is the expense that hourly rate the aggreate of that hourly rate. Um, and you should see a decrease in a lot of categories. Like you wouldn't see many costs for employment since we're employing most of the team. Um, and so up to you guys and how you want to structure it. Um, but in terms of you know VA's role in this, it'll just be you know a monthly invoice that you get that is the sum of the hours for that month. So just for just for clarification now uh you've answered my question is monthly you're going to submit us a voucher for an hourly rate showing what what what you do what's due to you correct

correct is is that what you're saying is that what you're saying yeah she's saying that um you said monthly they're going to send us an invoice of what's due to you. That's pretty much as I expected.

Yeah, we would be re we would the months that have already been recorded continue to be a part of it for the whole year. But uh on most basis we have variance by hours and um MTA may ask us for some information that we might have passed in but other than that it would be the items that we are still paying for including the ones that they would reimburse us for and uh so it would be sort of a combination But the

guess I'm I'm I the items that we are paying for that's going to be broken down and it'll be basically looking the same as this. It's not changing. Correct. Okay.

Any other questions? Any other questions?

All right. Anything else to add to our report, Ryan? I think I'm all set. You're all set. Okay. All right. Let me close out of that guy.

Uh, you know what? If you want to turn the volume down or just hold on to it for now because we're going to have a via update. Okay. Uh, let's see. There we go. All right. Next thing we're looking at is current fair box through February. One thing that we noticed when we were looking through this is that there were some pretty big

jumps and dips. But it kind of just looks like people are purchasing tokens and tickets that they would have purchased. in a different month the previous year. So let's say typically they buy a thousand tokens in March.

This year they purchased it in April. So March looks like it's down. But if you look at the kind of average across everything, Fairbox right now is really steady. One thing that I did think was interesting, um, we've had pretty heavy use of our tokens until January of this year. All of a sudden that took a really sharp drop and instead people are buying the white and blue cards.

I don't know if that's a trend that'll continue, but that was an interesting thing to see reflected. um we will have a an even better idea of Yeah, I think I think the white and blue cards give you better access and and more and more uh value. I think they too do too. They're easier to carry. Um they're pretty easy to buy. They can be used on either the fixed route or on demand. So yeah, I think it's a good deal, too. And there's a discount. So yeah. Um any questions about this?

So the total fair box revenue to date for 26 is 75,774 believe. So would you mind saying that? Did you say $75,774? Yeah. Yep. Yep. You got it. year the same time it would have been 181. No, this is for the entire fiscal year. For the upper one. Yeah.

Okay. All right. With that, next item on our agenda is the VA update.

Give this back to you all. Go ahead whenever you're ready. I turn Okay. Incredible. Yes. They were talking about us. Yeah.

No, but what service were they talking about? Uh, like so much better than before. Which service were they talking about? The on demand or the fixed route? Probably on demand.

Yeah, on demand. experience experience. Hi. Yeah. Nice.

Yeah, I want to echo all of that. I have had several passengers that are regular passengers who have come up to me at the front desk and been like, "This service is amazing. This is always what we wanted. This is what we needed." Um, also in terms of the app use, correct me if I'm wrong, Jack, but that number is so high compared to what you aimed for. He thought it was wrong. was wrong. Skyler gave an estimate that was about 25%. He was like, "No, that can't be right. That's way too high." Yeah. So, it's it's been really good.

It's been really good. Mhm. Any other questions? Thank you, sir.

All right. Next on our agenda is the financial plan for my phone. We all have an opportunity to grieve financial management. This being created now something just changes to reflect what's going on. I do have a copy that just has the changes that were made

which we can certainly go through. If everyone's satisfied though, we can move on to the resolution.

All right. Under the comment copy didn't bring all the comments.

The important ones had to do with what was referenced in the letter and it was taught a request from FTA uh about making sure that the UN entrance policies and procedures showed the separation of duties that they require and was uh adjusted in terms of how we're actually doing who's doing yanko and what the uh procedure is. Okay.

Yeah. Um, we did take the opportunity to make some additional changes just because we've had some obvious structural changes. We no longer have an office manager. We no longer have uh forgetting what Nick was listed on this, but basically Nick and Gel and Joshara are no longer with the agency. So, it doesn't make sense to have those positions listed in the financial management procedures. Uh so instead we divided everything up between our consultants um including our current accountants, the compliance manager aka Oliver, uh our grants and procurement manager which is Mark eps and then the executive director role.

We also referred to the finance team instead of the finance department. we felt that was more accurate to the way things function. Uh we also changed some language instead of a comparison to the previous year which we can always get. Um but the monthto-month budget like we presented to you this month we thought is something that's more realistic to put together every single month to give you guys. Um, finance directors, labeled accountants,

occasionally compliance manager,

try to move down to things that are that were bigger changes. We took out the union contract mentioned because we no longer have a union contract. I think this one was important. So, expenditures are approved by Takata board of trustees during monthly review of financial reports.

Uh, invoices from vendors are going to be sent to the accounting consultants or assigned staff for processing, reviewed by the executive director and then submitted to the grants and procurement manager for payment. Uh most of the payments are kind of automatic, but whenever something needs to, you know, someone has to click send, we thought that would add that extra control.

Um let's see. Similarly, transfers are monitored by the accounting consultants uh and the grants procurement manager. They then notify the executive director or designate.

Um, and then we also have the accounting consultants listed as backup to the grant manager for their roles in this section if necessary. That way if Mark's on vacation, we're still covered. We removed this section in the financial plan. We've never had a five-year financial plan. Occasionally, we do several years. Um, it's probably a good practice to do it, but since we haven't done it, and usually when we get dinged for compliance, it's because we're not following our own rules. So, instead of promising we will do this, we decided to Yeah. Yeah.

Uh, all right. What else? some additional language about the state of Michigan and via um the accounts payable changed a lot. This was a section where we noticed that there were so many staffing changes um or things just practically weren't working the way that they were written. So, we changed it. Uh in this case, the executive director and grants procurement manager are going to create a purchase request. Um the state of Michigan's my deal contracts are going to be looked at before we go anywhere else. Uh after receiving an invoice, the invoice will be emailed to Tcata.com for processing by the accounting accountants. Uh the executive director matches the purchase order to the invoice and signed receiving report and checks for accuracy and or duplication. Um and then and approves the invoice. Uh the invoice is then sent for final approval by the grant and procurement manager. Again, this is in there as an additional control. it. There are uh problems that could come up if you have someone who is doing all of this, right? So, to make sure I don't steal any money, um Mark's going to make sure that everything feels like it's above board. Um and vice versa, right? Because we're both looking at it. Uh otherwise, our accountants are recording the invoices in QuickBooks in accordance with the GAP. Um director will submit an accounts payable list and an accounts payable unpaid list to the board for approval at their

monthly meeting. um payments requiring physical checks are created by Takata's staff consultant bill kind of as sees fit whether it's an automatic payment someone has to physically go in or someone has to physically write it um and they're sent out that same day uh echo we made some changes as well instead of finance director we put in the compliance manager um supported by additional finance team for uh the echo draw downs. Really we all kind of look at these things together on a regular basis. Um we also put in an authorized signatory instead of putting a very specific title or person. Um then the grants procurement manager will send the form to Echo FTA for initial approval. This is the sort of long process that we have right now. And I think those are some really really big changes of a jump. We also put in for record retention, the destruction of any federal award records has to be approved by the executive director or the Takata board if no director is available. Um, Fairbox, we're still working out a little bit of the overall process with VIA on a practical basis, but generally it's going to be the same. assigned personnel or consultant is going to receive the front desk logs for the fair box each Monday. Um, and then it says what they need to be on those

in order to complete accounting correctly. I have just a general policy but they Yes. Uh and then after that it's just the operating assistance project attachment and the uh echo worksheet which is much prettier in the PDF. Um but those were already there. Those aren't changes at all.

Any questions? Anyone? Okay. We will be submitting to the cover letter to address the concerns that FDA raised. Okay. Item next. Well, we we still need to do the resolution to approve the management procedures is what's next on the list. We all have that resolution. Uh this is the resolution here. resolution.

Correct. And I'm making a resolution. Oh, gotcha. Motion made by virtual hatcher. I thought you were trying to read something else. No, no, no. I do. Um I didn't want to preach out too many in case changes are made. So this is how to do that.

It's okay. Chair uh Little Yes. Chair Robinson. Yes. Chair uh Achard. Hatchard. Yes. Hatchard. Um Chair Jackson. Yes. trustee.

Okay. Next on the agendation of signature authority letter and the resolution designation of signature authority.

We've had discussion about this before. Yes. We have FTA asked us to put it in a specific format

to make authority. Chair Little. Yes. Trusty Robinson. Yes. Trustee Hatchard. Trusty Jackson. Yes. Great. Next item on the agenda is authorizing compliance with circular 9030.1.

I have no idea what this is. See it. All right.

Um, so this is this is another item that we need to update for FTA and they require it to be in a specific format. Um, okay. I think it's probably best if I just give it a quick read for you guys. So, resolution authorizing the filing of applications with the Federal Transit Admin Ad Administration and Operating Administration of the United States Department of Transportation for Federal Transportation Assistance, authorized by 49 USC, Chapter 53, Title 23, United States Code or other federal statutes administered by the Federal Transit Administration. Whereas the Federal Transit Administration has been delegated authority to award federal financial assistance for transportation project. Whereas the grant or cooperative agreement for federal financial assistance will impose certain obligations upon the applicant and may require the applicant to provide the local share of the project cost. Whereas the applicant has or will provide an annual all annual certifications and assurances to the Federal Transit Administration required for the project. Now therefore be it resolved by Takata board of directors that the executive director interim or otherwise and Takata's board chair in the event the executive director is unavailable are authorized to execute and file an application for federal assistance on behalf of Takata with the FTA for federal assistance authorized by 49 USC chapter 53 title 23 yada yada yada yada yada. Um, I'm going to jump down to the next one. Basically, it's saying we have the ability to go into these systems and sign documents. Um,

yep.

All right. So looking at the second one that the executive director in ter or otherwise in Takata's board chair in the event the executive director is unavailable or authorized to execute and file with its annual applications the annual certifications, assurances and other documents the federal transportation administration requires before awarding the federal assistance grant or cooperative agreement that the executive director interim or otherwise and Takata's board chair in the event the d the executive director is unavailable are authorized to execute grant and cooperative agreements with the FTA on behalf of Twin Cities Area Transportation Authority. Uh the undersigned duly qualified executive director interim or otherwise and Takata's board chair in the event the executive director is unavailable acting on behalf of Takata certifies that the board going is true and correct. Copy of a resolution adopted at a legally convened meeting of the Takata board held March 31st, 2026.

Motion reser.

Trusty Robinson. Yes. Trusty Hatchert. Yes. Trusty Jackson. Yes.

Okay. Authority. Resolution to approve the vendor and contractor. I feel like we skipped something. Great. Um, did any of you have any concerns about how these things were distributed? When you say distributed, what do you mean by?

Uh, so everything that's in the green section is going to be reimbursed by VIA Tutakata. Everything that's in the red section is what Takata is going to need to pay for going forward of sort of these vendors and contractors. Um, so really the big ones are it so we can maintain our historic archives, email, things like that. Um, the WDU lease it, we don't think we're going to need it. Um, we've paid for it one more time just in case. Um, but VIA has their own system that they use. The security cameras in the vehicles are going to be paid by VIA. So, we don't need to pay Angel Tracks or I think is it REI? No, REI. We someone does need to pay, but the we have two different types of cameras in the vehicles in the past. We don't need to pay them anymore. um accounting, our annual auditor and then anything from the A&E firm if we do anything with the A&E firm would be us. I think actually there might be two more. Oh yeah, PC trans if we want to pay for it that would be on us. Uh new vehicles,

Takata aka federal funded and um Oliver Another advanced stone as we situation change we may change for our activity up to now and for a period of time to But once the information be Second,

Chair Little. Yes. Chair Jackson, I mean, Trusty Jackson, yes. Trustee uh Hatchard, yes. Trusty Robinson, yes. Okay. Next item on the resolution to approve the organizational chart. I I got I got a question. Sure. In regards to um these are all operated and managed by

No, it's it's just the center box that says operations that box and then maintenance, dispatch, bus operators. That is all via um accounting, legal, compliance, grants management, that's all still our responsibility. Okay. Motion is

Yes. resolution to approve the organizational chart and organizational chart itself.

Chair Little, yes. Trusty Robinson, yes. Trustee Hatch, yes. Trusty Jackson, yes. Great. All right. Next updated opinion of council letter basically I believe provides what is requesting us on the second page of the letter we have that motion will be in order to accept

resolution to approve finance projection plans. Yes. Opinion opinion of council. Yes. Motion resol. We're just looking for a motion to approve the resolution to accept the updated opinion of council letter. I approve. Yes, I did. I thought it was raining pretty good for a minute. So, I'll second it. All right. Very good. Chair Little. Yes. Trusty Robinson. Yes. Trusty Jackson. Yes. Trusty Hatchard. Yes. Great. Okay. Next item is resolution to approve updated financial projections plan.

Is Yeah. Is that something that you have?

Okay. Good. Okay. Good. This one I don't think I've received. This is so Oh, there it is. Nope, that's not it. I don't think I got that one. Got it.

That guy from the Okay. Right.

Thanks. Thank you. Martin worked on this. That's one of the items that's requested in the letter from FTA and we're responding to the dots on the second page next to the last item says updated financial plan demonstrating adequate revenues to maintain and operate transit service in accordance with the written contract. contracts and agreements. And this basically shows the projected flow through um September 30. And at the end, the bottom of the last two, you'll note that uh those two are in red. And we've indicated we There's some 440 something thousand that is still is due to us that is being held up if they release those that will cover that short balance through the full year. Oliver, do you want to add any additional comments?

process. All right. Thank you, sir. motion. I make a motion to accept the resolution to approve the updated financial.

Chair Little, yes. Trusty Robinson, yes. Trusty Jackson, yes. Trusty Hatchet, yes. Okay. Uh, last but not least, last but not least,

it is time to cancel our vehicle insurance with Obsidian and general liability. Um, the form that I handed you is the form that I received today. We just have to decide we want to cancel it officially and then it can be signed and sent right back over. There's no need for it. Right. Exactly. There's no need for it.

Yeah. We've talked about it a lot. Sorry.

Motion is in order.

Chair Little, yes. Trusty Robertson, yes. Trusty Jackson, yes. Trusty Hatch, All right.

And that's the last item. on that one since we're all together. So, make sure like to just read the draft that had March 31st. In the effort to finalize our response to its performance outlined in your February 6th letter, the Takata board has taken the necessary actions and concluded with a board meeting acting on the items requiring board approval. Those items are being submitted as attachments to this letter. Sakata has already taken the action necessary to resolve the concern regarding executive whom you are familiar with. The Tucless requesting that FTA lift the echo draw down restrictions and pay the draws that have been held up. The contract with via has been activated and we are pleased to say that performance is exceptional as expected. We are submitting also a tax a projection through the end of September 2026 with the last two months showing a deficit that will be eliminated when the $443,65 already build but not paid is released. Mr. board will assure you that internal control standards will be met. Done has taken steps to ensure that the authorizing official and echo matches the approver of the draws and documentation is included in the financial plan policies to reflect that. Takata has documented clear roles and

responsibilities that reflect current practices and will be kept up to date as positions change. Updated policies and procedures that have been adopted by the Takata board are taxed to demonstrate Takata's legal, financial, and technical capacity to be eligible to receive federal assistance as requested. Takata is providing the following Takata's echo authorizing officials are Alexander Little Takata board chairman and all Lindsay contractor. The chairman and Mr. Lindy are serving on a permanent basis. An updated organizational chart identifying the names of all key staff and their position roles in the implementation is current. They are actively serving in those roles at the present time. An updated signature authority resolution has been approved and submitted. Updated board approved authorizing resolution is attached. Updated opinion council letter is attached. A copy of the updated policies and procedures document reflecting the segregation of duties and internal controls is attached. The updated financial plan demonstrated adequate revenues to maintain and operate transit service in accordance with written contract and agreements in the text. Hopefully, you will determine that Takata does possess the requisite internal control under 2CFR and 200.203 203 and recipient capacity to receive federal assistance under MTA's master agreement 34 and will release echo

access. If there are any questions or concerns, please contact Alex 2692042776 RBCHC us. We thank you for your assistant, support, and cooperation. And we'll have this letter finalized. We'll put all the attachments, get it off tomorrow,

by email. And uh with that for us to sign all of our documents here tonight. Okay.

Comments. Anybody online? Okay. From any of the participants? Anybody online? Not a motion.

I'll second it. Cheer. Uh, cheer little trusty Robinson. Yes. Trusty Jackson. Yes. Trusty Hatchard. Thanks, guys. All right, that's it. night. Have a great rest of your night. Thank you all very much. you. Okay.