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HomeMy WebLinkAboutCentral Cascade Lines SummaryDeschutes County / Oregon Department of Transportation Site Review Summary July 31, 2008 Central Cascade Lines Background / History Central Cascade Lines, Inc. (CCL) registered with the State of Oregon as a domestic non-profit corporation in May 2006. The business is located in La Pine, Oregon and was formed for the purpose of providing transportation services for residents of southern Deschutes County. The Oregon Secretary of State's Office records Lupita Lewis as the current president and registered agent of CCL. Services CCL operates both a deviated fixed -route service that transports commuters between La Pine and Bend several times a day and a demand -response service that provides door-to-door transportation for older adults and people with disabilities. The organization operates four vehicles for this purpose: 1 25 -passenger bus, 1 17 -passenger bus, and 2 7 -passenger vans. According to a status report submitted to Deschutes County for the 3 -month fourth quarter period of March 1, 2008 through June 30, 2008, CCL provided 400 one-way fixed route trips and 250 demand responsive one-way trips for older adults and people with disabilities. In a grant application submitted by CCL to Deschutes County in May 2008, this figure was stated as representing 65% of the organization's total ridership. Based on those figures and a calculation of full seating for the vehicles operated continually throughout the day, Deschutes County staff estimates that, at a maximum, CCL currently has the capacity to provide 894 one-way trips per day. However, this estimate, as detailed below, does not allow for driver breaks, in -town driving, and delays for picking up and dropping off passengers: 1 25 -passenger bus x 6 one-way trips per day between Bend and La Pine = 150 passengers 1 17 -passenger bus x 24 one-way trips per day between Bend and La Pine = 408 passengers 2 7 -passenger vans x 24 one-way trips per day between Bend and La Pine = 336 passengers Funding Budget documents submitted with grant applications and prior year tax returns indicate that sources of revenue used to operate the business include primarily private and public grants as well as fare receipts. In July 2007, CCL received a grant award of $41,409 from Deschutes County to provide transportation services to elderly and disabled populations using Special Transportation Funds (STF) made available through ODOT. In addition to the STF grant award, the Deschutes County Board of Commissioners has awarded a total of $22,500 in economic development grants to CCL, including the following: • $1,500 awarded in 2006 to purchase a computer, monitor, portable computer with speech output, printer, office supplies and grant reference manual. • $2,500 awarded in 2007 for operational costs related to providing a shuttle service between La Pine and the Deschutes County fairgrounds during the 2007 County Fair event. • $3,500 awarded in 2007 to repair/replace the transmission and shift differential on a 25 - passenger bus. • $10,000 awarded in 2007 for emergency funds to pay for fuel and wages. • $5,000 awarded in 2008 to purchase a high-speed photocopier. Deschutes County has offered additional assistance to support CCL during the past year as well, including grading and improving County -owned property used for the La Pine Park and Ride at Lupita Lewis' request and making space available at the South County Services Building for overnight bus storage. Discretionary Grants Each biennium, Deschutes County solicits applications from local transportation service providers for projects to be included in the County's request for funding through ODOT's Public Transit Division Discretionary Grant Program. Applications are reviewed and recommended by the County's STF Advisory Committee, approved by the Board of County Commissioners, then evaluated by ODOT which makes a final determination of awards. CCL requested a total of $549,089 through the Discretionary Grant Program for the 2007-09 biennium, including funds for preventive maintenance, purchase of a new bus, operations, and computer equipment. In most cases, ODOT awards discretionary grants directly to the service provider. However, current policy does not allow ODOT to contract directly with newly -formed non-profit entities that are unable to demonstrate a proven record of performance. As a result, ODOT asked Deschutes County to be the direct recipient of two discretionary grants to support transportation services between La Pine and Bend, one in the amount of $82,103 to purchase a new bus, three additional computers, and one additional printer and one in the amount of $25,000 for Job Access and Reverse Commute (JARC) services to improve access to employment centers. The Board of Commissioners agreed to act in the role of direct recipient with the intention of entering into a sub -agreement with CCL to fulfill the grant requirements. ODOT delivered the direct recipient agreements to be signed by Deschutes County in September of 2007. The Deschutes County Board of Commissioners authorized the Chair to sign the agreements in October 2007 and the signed, executed agreements were returned by ODOT to the County in December 2007. Deschutes County staff then prepared and delivered to CCL two sub - recipient agreements for signatures the first week of February 2008. In a telephone call made to County staff in March 2008, Lupita Lewis stated that CCL's Board of Director's had reviewed the agreements, but were considering requesting that changes be made to the documents. No further information was provided and Ms. Lewis next indicated that she was ready to sign the agreements in May 2008. Service Complaints In March 2008, ODOT received a complaint regarding a payroll dispute between CCL and one of its drivers. The complainant was advised by ODOT, and later by Deschutes County, that the appropriate forum for resolving the issue was the Bureau of Labor and Industries (BOLI). However, in subsequent communications, the complainant also reported concerns about the safety of CCL's operations. Between March and June 2008, ODOT and Deschutes County received several more complaints regarding the safety of CCL's services. Beginning in June 2008, both ODOT and Deschutes County also received several letters of support for CCL and its services. Examples of safety concerns cited by the complainants include the following: • Drivers not properly licensed or certified to operate large passenger buses (CDL required in vehicles with 16 occupants, including driver). • Drivers operating buses in unsafe condition, including with a flat tire, without chains during winter months, and with emergency exits locked. • Drivers routinely speeding in school zones, residential areas, and on the highway. • Drivers routinely running red lights and stop signs and making illegal turns. • Overbooked trips with passengers occasionally seated in wheel wells. • No driver training and testing in driving, safety, or first aid. • No driver testing for alcohol or drug use. • Many seatbelts not functional. In consultation with ODOT, Deschutes County determined that the safety complaints were serious enough to warrant a site review of CCL's operations. Site Review Process In June 2008, Lupita Lewis requested a meeting with County Administrator Dave Kanner to discuss the complaints and the process that would be used to resolve them. Mr. Kanner and Management Analyst Judith Ure met with Ms. Lewis and CCL board member T.J. Miller on June 12 and outlined the site review process recommended by ODOT to determine if CCL was in compliance with state and federal laws and regulations required by entities receiving public funds for transportation purposes (as further described in Federal Register, Volume 72, No. 206, published Thursday, October 25, 2007). Rather than attempt to address each individual complaint made, the site review process was intended to uncover underlying deficiencies, if any, that may have led to the complaints. During the meeting, Mr. Kanner and Ms. Ure indicated that, if deficiencies were identified, the County would attempt to work with CCL to resolve them. The same day, Ms. Ure provided Ms. Lewis with copies of the complaints the County and ODOT had received and a site review checklist. As outlined, the site review process included: • Completion by CCL of a site review checklist answering specific questions related to financial, management and legal sufficiency; transit operations, safety, and security; the Americans with Disabilities Act (ADA), and the FTA drug and alcohol program. • A site visit to verify that responses made on the checklist were accurate and to inspect operational records, equipment, and premises. Ms. Lewis submitted the completed checklist document to the County on June 27, 2008 and Judith Ure and Joni Bramlett, ODOT Capital Program Manager, conducted a site visit on July 18. Lupita Lewis, T.J. Miller, and a receptionist employed by CCL were present during the site visit. General Assessment The issue of greatest concern identified during the site review process is that CCL does not have, or was unable to produce for review, written policies and procedures necessary to determine if the business complies with state and federal laws, rules, and regulations concerning transportation services or if the entity is eligible to receive public funds for such services. Such policies and procedures that do exist at CCL are often informal in nature and communicated verbally which is difficult to verify and does not satisfy requirements for receiving grant funds. Some documents, including a non-discrimination policy and notice, Title VI complaint form, drug and alcohol policy, employment policies and procedures, safety, security, and emergency preparedness plan, pre-employment driving evaluation, and driver daily vehicle inspection report were produced by Ms. Lewis and briefly reviewed on site. However, despite a request made during the site visit, copies were not provided to the review team for more comprehensive evaluation until nearly two weeks after the visit took place. As a result, much information that could have been obtained from those documents is not included in this report. Ms. Lewis indicated that other required written policies and procedures have not yet been developed or adopted, including financial management policies and procedures, procurement policies and procedures, vehicle and equipment maintenance plan and procedures, seat belt and child seat procedures, and passenger guidelines. Specific Issues of Concern Although this document does not provide a complete list of findings made during the site review process, a lack of documentation and established business practices on the part of CCL resulted in the following specific areas of concern being noted by the review team: Financial Policies, Procedures, and Controls: At the time of the site visit, CCL did not have written financial policies, procedures, and controls in place. To be eligible for public funding, CCL must, at a minimum, develop, adopt, and make available for review by State and County officials, policies and procedures that: • Segregate grant funds, matching funds, and expenditures. • Specify cash handling procedures, including frequency of bank deposits. • Specify authority for and limits to payment authorization. • Specify authority for use of business credit cards. • Fare collection and accounting procedures. Use of State and Federal Funds: At the time of the site visit, CCL did not have procedures in place to define and verify the proper use of equipment purchased with state and federal funds. While CCL does not currently operate with any such equipment, such procedures must be developed and adopted before public funds can be received for the purchase of a bus or other equipment. Procedures must include provisions for the following: • Equipment is used consistent with the original purpose. • Equipment is tagged or otherwise identified as property purchased with state or federal funds. • Records must be maintained identifying equipment identification, procurement process, grant sources used, condition, and disposition. • Equipment must be protected from misuse, misappropriation, waste, etc. • A physical inventory system must be in place. Budget and Accounting Systems: CCL was unable to produce adequate documentation that programs receiving state, federal, or local funds are accounted for through specified accounts within the accounting system as required. Ms. Lewis indicated that she is currently working with an accountant to establish such a system. Such a system must include: • A defined method to distribute costs to the programs. • A defined method to distribute administration and other common expenses between programs. • A method of allocating costs to individual grant agreements. Grant Management: CCL is currently receiving grant funds, but could not produce evidence of an adequate system in place to track such funds. Ms. Lewis indicated that she is working with an accountant to establish a system to monitor grants and to meet financial and reporting requirements. At a minimum, the system must: • Provide a method to track matching funds contributed to grants. • Provide a method to track cash donations and in-kind non-cash contributions. • Document the source and amount of in-kind non-cash contributions. • Document tasks and hours per task performed by volunteers. • Document that volunteers are not paid more than out-of-pocket expenses. Procurement Policy and Procedure: CCL does not currently have a written procurement policy and procedures in place. Instructions concerning who is authorized to make purchases and at what limit Board approval is required are informal in nature and based on verbal understanding. The written procurement policy and procedure must: • Limit purchasing to specific individuals. • Require pre -approval for purchases exceeding a defined threshold. • Use an open solicitation and negotiated process to obtain the best possible price and quality. • Designate authority for signing contracts. • Establish procedures to ensure that equipment, goods and services are acquired and received as contracted. • Establish a system to maintain complete purchasing records. Board Management: CCL has adopted comprehensive written by-laws and articles of incorporation and maintains full copies of board meeting agendas and minutes. However, the board recruitment process is informal and based on word-of-mouth and board meetings are not widely advertised to the public. In addition, Lupita Lewis, who is currently holding the title of President of CCL, appears to also be acting in the capacity of Board Chair, possibly constituting a conflict of interest. Labor and Employee Relations: CCL provided a copy of a driver job description and application form during the site visit. However, a copy of the organization's employment policies and procedures was not provided until nearly two weeks after the site visit and, as a result, was not thoroughly reviewed prior to preparation of this report. Reviewers did not see evidence of a sample job announcement, use of the Employment Office for recruitment assistance, or a public recruitment process for filling vacancies. Passenger Guidelines: Ms. Lewis indicated that CCL is currently developing passenger guidelines and expects to have them completed by August 2008. However, currently the organization does not have written guidelines for passengers that describe safety instructions, a complaint resolution process, service boundaries, service categories and limitations, reservation policies, eligibility for reduced fare, or the use of seatbelts, service animals, and personal care attendants as required. Driver Training: CCL's response to the site review checklist indicates that a driver training program is currently under development. Although some training records were produced during the site visit, reviewers were unable to assess the scope of training required or made available to drivers. A training program must include the following: • Defensive driving. • Passenger assistance. • ADA requirements. • Passenger relations. • Evacuation and emergency procedures. • Behind the wheel orientation. • Drug and alcohol program policy and prevention. • Customer service. Safety and All Hazards Plan: Although a very rudimentary outline was in place at the time of the site visit, CCL does not appear to have an adequate safety and all hazards plan in place. Ms. Lewis indicated that CCL is currently developing a plan and expects to complete it in August. Such a plan must include provisions for: • Communicable diseases. • Bloodborne pathogens. • Hazardous materials. Vehicle Maintenance Plan: At the time of the site visit, CCL's vehicle maintenance plan was not adequate or complete. Although a visual inspection showed the equipment to be in generally good condition and vehicle maintenance logs were produced, there appeared to be no established schedule indicating when to perform routine maintenance to brakes, lifts, steering, and suspension systems or how to arrange or pay for high-cost repairs. Anti -Drug Use and Alcohol Abuse Prevention Program: To be eligible for JARC funding, CCL must meet requirements for anti-drug use and alcohol abuse prevention. While CCL does have a written drug and alcohol policy in place, some procedures must be strengthened, including: • Participating in an ODOT pool to meet random testing requirements (encouraged, but not required). • Conducting drug and alcohol tests of candidates prior to official hiring. • Establishing criteria for screening applicants with a positive drug or alcohol history. • Monitoring treatment progress when employees are referred after a positive test. • Establishing policies that document actions when a positive test is taken. • Documentation in policy regarding testing contractor and monitoring of the company. • Documentation in policy regarding thresholds for testing drivers post -accident. Conclusion Deschutes County and ODOT cannot be assured through the site review process that Central Cascade Lines, Inc. meets the requirements to receive public funding for transportation services. The organization is lacking documentation of critical policies and procedures necessary to, at a minimum, assess institutional, managerial, and financial capability to ensure proper planning, management, and completion of the affected projects or compliance in the following categories as required through certification to the Federal Transit Administration (further described in Federal Register, Volume 72, No. 206, published Thursday, October 25, 2007): 01: Assurances Required for Each Applicant (includes Title VI of the Civil Rights Act of 1964, Rehabilitation Act of 1973, Americans with Disabilities Act of 1990, Age Discrimination Act of 1975, Drug Abuse Office and Treatment Act of 1972, Comprehensive Alcohol Abuse and Prevention Act of 1970, Public Health Service Act of 1912, Single Audit Act Amendments of 1996, OMB Circular A-133 — Audits of States, Local Governments, and Non -Profit Organizations, and others). 03: Procurement Compliance. 06: Acquisition of Rolling Stock for Use in Revenue Service. 08: Bus Testing. 11: Demand Responsive Service. 12: Alcohol Misuse and Prohibited Drug Use. 17: Elderly Individuals and Individuals with Disabilities Formula Program. 19: Job Access and Reverse Commute Program. If CCL seeks to become eligible for public funding in the future, the organization must develop, adopt, and adhere to policies and procedures that demonstrate institutional, managerial, and financial capability and compliance with the above referenced laws and regulations. To demonstrate that these conditions have been met, CCL would be subject to a follow-up site review process to be conducted by Deschutes County and ODOT officials.