AGENDA #4d
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Agreement between the Town of Chapel Hill and the North Carolina Department of Transportation for Reimbursement of Costs Incurred by the Town for Maintenance of Field Traffic Signal Equipment
DATE: April 10, 2006
PURPOSE
The attached resolution would authorize the Town Manager to enter into an agreement with the North Carolina Department of Transportation regarding updated reimbursement rates for Town costs incurred for maintenance of field traffic signal equipment.
The updated reimbursement rates would result in an increase of approximately $18,000 per year over current rates to reimburse the Town for maintenance and personnel costs associated with the operation of field traffic signal equipment in Chapel Hill and Carrboro.
We recommend adoption of the attached resolution.
The Town entered into agreements with the State for reimbursement of costs incurred by the Town for Level of Service D associated with maintenance of field traffic signal equipment and maintenance and operation of the computerized traffic signal system that serves Chapel Hill and Carrboro. The key provisions of the agreements are:
Our traffic signal system includes signals in the Town of Carrboro, and the State reimburses Chapel Hill for operation and maintenance of those signals at the same rates as system signals within the Town of Chapel Hill.
Recently, the State has informed the Town that it would agree to increase the annual reimbursement to the Town by approximately $18,000 if the Town would commit sufficient personnel and other resources to maintaining the traffic signal system and associated equipment at Level of Service C which is a higher service level than the Town’s current Level of Service D. This higher service level requires implementation of a Comprehensive Preventive and Bench Maintenance Program to ensure optimum operation of the traffic signal system.
In discussing this matter with the State, we determined that the Town would need to hire an additional traffic technician to rotate between the traffic signal section and the signs/markings section in order to meet the necessary performance criteria for Level of Service C reimbursement from the State.
We have proposed an additional traffic technician position in his FY 2006-07 budget proposal for the Council’s consideration. Please see the attached budget working paper for additional information. The proposed position would not require additional Town funding because it could be funded within the existing Traffic Division budget that would include increased annual revenue from the State if the Council authorizes the Manager to execute the agreement to move from Level of Service D to Level of Service C.
The provisions of the existing and revised schedule agreements would be unchanged with the exception of the increased reimbursement rates. We are requesting Council action now so that the higher reimbursement rates can begin during this quarter.
We will continue to work with the State to improve traffic operations in Chapel Hill, and to identify reimbursable costs associated with operating and maintaining the traffic signal system serving Chapel Hill and Carrboro.
That the Council adopt the attached resolution authorizing the Town Manager to enter into an agreement with the State regarding revised reimbursement rates for costs incurred by the Town for maintenance of field traffic signal equipment.
ATTACHMENTS
1. Budget Working Paper dated March 8, 2006 (p. 4).