Memorandum
DATE: June 4, 2015
TO: Administration & Finance Committee to the Boston Region MPO
FROM: Karl Quackenbush, Executive Director
RE: CTPS SFY2016 Operating Budget
Vote to Approve
The following memorandum describes the proposed Draft CTPS SFY2016 Operating Budget of $6,527,200.
Based upon current revenue projections and the associated work program, it is anticipated that 64 professional positions will be filled in SFY2016. Supplemental non-professional staffing may include interns and/or temporary staff assigned to special projects (i.e. data collection). A merit pool has been budgeted for a salary increase.
Expenditures for the following direct cost line items may require prior approval of the contractor to whom the purchase will be charged.
The CTPS Five Year Computer Plan outlines the agency’s plan for maintenance and enhancement of its computing infrastructure. The SFY2016 element of the Computer Plan, attached, identifies the purchase of replacements for a database server, the firewall, a plotter, and workstations that host the modeling software.
The cost of data collection, rental vehicles and fuel to conduct travel time runs and in-state mileage for travel that is directly associated with project activity is paid with this funding. Travel out-of-state to work related conferences, professional development opportunities or trainings sessions is also funded with this budget.
Costs that are unanticipated or out-of-the ordinary, but related directly to contract work, are typically funded in the “Other” direct cost line item. In past years, travel time data and economic development software were budgeted as an “Other” expense. In SFY2016, the printing of, and postage for, the MBTA System-wide Survey ($74,500), along with the costs of translations for the MPO’s vital documents ($7,500), will be supported with this funding.
Indirect costs for CTPS include all the items which are non-project specific and which are shared proportionately by all grants and contracts. Dividing the annual indirect costs of $3,157,650 by the annual direct salaries of $3,192,950 derives a provisional overhead rate for SFY2016 of 98.89%.
Fringe Benefits funding covers holiday, sick, accrued vacation, family leave, discretionary time, and administrative leave (such as snow days, bereavement and jury duty).
Administrative time includes time spent in staff meetings, developing progress reports and work scopes, grant management, processing time sheets, researching products for purchasing, in-house training sessions, conferences and seminars, conducting staff evaluations, general graphics, and document production activities.
Health and life insurance benefits are offered to each CTPS employee through the Commonwealth’s Group Insurance Commission. CTPS pays a portion of the cost of this premium. It is difficult to project this cost due to the variety of health plans, type of membership and associated premiums from which the employees may chose.
CTPS employees are covered for work place injuries by a workers’ compensation liability policy held by MAPC. This line represents CTPS’ contribution to this premium.
CTPS is self-insured for Unemployment Compensation and 100% responsible for the benefits paid to a terminated employee. The CTPS Budget includes funds for former professional staff, temporary special project employees and data collectors who may be eligible.
CTPS must contribute a portion of employees’ salaries (hired after January 1985) to the Social Security Administration to support Medicare.
This is a state-mandated cost that is assessed to employers with six or more employees and covers the cost of medical benefits for the unemployed.
MAPC has established a short-term disability insurance program for all MAPC and CTPS eligible employees. One-hundred percent of the premium is employer paid. This line represents CTPS’ portion of the premium.
CTPS provides 50% reimbursement for annual tuition costs, up to $1,500 per person per year.
To ensure the success of a nationwide search for prospective candidates, CTPS provides 100% reimbursement to prospective candidates of travel expenses related to the interviews. CTPS also reimburses the cost of a new out-of-state employee’s documented moving expenses, up to $2,000.
This line item covers the cost of in-state training programs on software use/application/development and enhancement of management and communication skills. Additional training is planned for staff as a new financial management system is implemented over the course of SFY2016.
The MAPC/CTPS personnel policy allows an employee to receive reimbursement of 100% of the commuting expenditures, up to $150.00 per month.
This line item includes all general office, graphics, and data processing supplies.
This category of costs includes the purchase of general office, data processing, and graphics equipment; the cost of the lease of the postage meter, and the cost of leasing additional equipment as necessary; maintenance contracts for computer equipment and annual licenses for software packages; and, repairs and maintenance of office and non-computer equipment.
Charges related to the lease of office space, storage space, renovation of work areas and physical plant maintenance are included in this grouping.
The postage line item covers general office postage.
In accordance with the MAPC Affirmative Action Policy, CTPS places recruitment ads in professional nationwide journals, The Boston Globe (online) and metropolitan Boston minority publications.
In January 2015, CTPS replaced its internet service provider, Level3, with Windstream. In addition to providing internet connectivity, Windstream was also contracted to install a new voice-over-internet-protocol (VoIP) telephone system. It was necessary to replace the telephone system as the original system, installed and operated by the State Transportation Building Management, was being phased out.
Periodically the services of lawyers or other professionals are required. The Law Offices of Kopelman & Paige provide legal services for CTPS ($3,000). Over the course of SFY2016, CTPS anticipates working with a consultant for technical support and expertise in Cubeland, a land use modeling software ($5,000). Additional ongoing technical support may be needed on “big data” issues ($2,000).
This line item covers the cost of hiring American Sign Language and foreign language interpreters/translators for public meetings and publications, and temporary staffing that may be needed for reception.
The cost of registration fees for local in-state meetings, conferences and meeting related expenses are included in this line item. Conference topics include pedestrian, bicycle, roadway, and transit planning, as well as software and data issues (i.e. open data visualization, big data).
This is the first year that CTPS is able to implement a policy of professional assistance that is consistent with MAPC. This policy is intended to encourage staff to join and participate in organizations or associations related to their professional discipline. CTPS will reimburse the cost of an annual membership up to $250. This benefit will be contingent upon the approval of the Executive Director, and annual budgetary appropriation.
CTPS subscribes to publications to support efforts by the staff to remain knowledgeable about the state-of-the practice and other timely news events. The State House News Service, Passenger Transport, and Urban Transportation Monitor are among a few examples.
Manuals and other technical instruction publications are purchased to provide staff with reference materials.
The cost of leasing and maintaining the agency copiers is covered by this line item, along with a cost based upon usage.
Professional printing services are used for the publication of various documents, laminating large presentation boards, production of informational booklets, and printing of various reports, as necessary.
Indirect Travel covers the reimbursement of mileage costs incurred by staff for purposes related to overhead. For example, if an employee attends an in-state training class that is for professional development or a preliminary project meeting, mileage on their personal automobile would be reimbursed from this line item.
This line item covers the cost of deliveries and courier service.
MAPC and CTPS are sharing the cost of purchasing a new financial management system. This purchase is the result of a lengthy procurement process that included the issuing of an RFP, numerous product demonstrations and extensive review of proposals. The initial costs include the purchase of hardware, the software license, an annual maintenance fee and implementation, for a total of $310,400. MAPC has agreed to finance the software purchase and implementation costs with a loan from a financial institution. By financing the purchase, the burden of payment can be spread out over five years.
Year one (SFY2016) will require a contribution from CTPS in the amount of approximately $78,000. This amount represents payment for half of the maintenance fee and the hardware, and financing of the software purchase and implementation. Year two through five, CTPS will be responsible for a contribution of approximately $40,000, which represents half of the annual maintenance fee and the loan financing.
An additional $2,000 is budgeted for miscellaneous costs.
MAPC will receive payment of at least $180,000 but not more than 6.5% of CTPS payroll in SFY2016, for providing CTPS with administrative services specified in the Fiduciary Agent Agreement. This figure will not be firm until the SFY2016 Annual Audit has been completed.