AGENDA #4f

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:      Resolution Authorizing Contracts with the University of North Carolina and the Town of Carrboro for Provision of Public Transportation Services

 

DATE:            May 22, 2006

 

 

The attached resolution would authorize the Town Manager or his designee to enter into contracts with the University of North Carolina and the Town of Carrboro for provision of public transportation services for fiscal year 2006-07.

 

BACKGROUND

 

As a part of the budget process each year, the staff negotiates with the University and the Town of Carrboro for transit services and cost sharing.  The actual level of service to be provided is determined by an annual service contract.

 

The University pays the full cost of certain “University” routes and then pays a proportional amount based on a population allocation system for the remaining costs under the fare free system.  Under the terms of the proposed form of agreement, the cost of services after the “University” routes are paid for fiscal year 2006-07 would be shared as follows: Chapel Hill – 45.83 percent, Carrboro – 15.70 percent and the University – 38.47 percent.

 

DISCUSSION

 

The final budget for the Transportation Fund has not been established by the Council.  However, based on the proposed budget, we expect the approximate net cost for the University will be $4,953,000 and the Town of Carrboro about $972,000.

 

We estimate the Town’s net cost for transit services for fiscal year 2006-07 will be about $2,839,000.

 

RECOMMENDATION

 

That the Council adopt the attached resolution authorizing the Manager or his designee to execute agreements with the Town of Carrboro and the University of North Carolina at Chapel Hill for the provision of public transportation services.