AGENDA #4p

MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	K. Stephen Spade, Transportation Director
SUBJECT:	Resolution Authorizing Contracts with the University of North Carolina and the Town of Carrboro for Provision of Public Transportation Services
DATE:	June 27, 2007

The attached resolution would authorize the 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 2007-08.

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 2007-08 would be shared as follows: Chapel Hill – 45.06 percent, Carrboro – 15.84 percent and the University – 39.10 percent.

DISCUSSION

The final budget for the Transportation Fund was adopted by the Council on June 11, 2007.  Based on that budget, we expect the approximate net cost for the University to be $5,710,000 and the Town of Carrboro about $1,017,000.

We estimate the Town’s net cost for transit services for fiscal year 2007-08 will be about $2,856,000.

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.