AGENDA #4o

MEMORANDUM

TO:                  Roger L. Stancil, Town Manager

FROM:            Steve Spade, Transit Director

                        Kenneth C. Pennoyer, Director of Business Management

SUBJECT:       Chapel Hill Transit General Policy and Fee Schedule Change for Shared Ride Feeder Services

DATE:             June 25, 2009

PURPOSE

The attached resolution would approve User Fee Policies and Fee Schedules for the Transit Department. The proposed change for FY 2008/09 is summarized below. See Attachment 1 for the Transit General Policy and Fee Schedule.

BACKGROUND

Chapel Hill Transit provides fare free transit service. The only services requiring a fare are Shared Ride services and the Tar Heel Express. In response to increasing fuel prices and the length and extraordinary cost of Shared Ride services, it is recommended that the fare be increased from the current $1.50 to $3.00 per trip and that purchase of multiple rides be encouraged by selling a book of 10 tickets for $15.00.  The concept of deep discounts for purchasing multiple rides can stimulate usage.

DISCUSSION

Chapel Hill Transit provides Evening and Sunday and Shared Ride Feeder service to augment our regular route services. The service is designed to serve people who want to travel at unusual times or who live more than a quarter of a mile from an existing bus route. This service is generally more expensive to provide.

There are several reasons to consider an increase in the fee for Shared Ride Feeder service.

1. The cost to provide this service on a per trip basis is high because of the low usage and low passengers per hour and per mile.
2. The length of the trips tends to be longer because the service can take people not only to the nearest bus route, but also to areas in the community that are not currently served by the bus.
3. The increase in fuel prices is having an effect on our ability to provide services.

The staff is recommending that this fare increase be implemented effective September 1, 2008.   Before the next Council meeting, Chapel Hill Transit will seek public comment and if public comment is significant, the staff will bring this issue back to the Council for further consideration at its first meeting in September.

RECOMMENDATION

Staff recommends the Council approve the modification of the Chapel Hill Transit General Policy and Fee Schedule increasing Shared Ride Feeder Service fares from $1.50 to $3.00 per trip. In addition booklets of 10 tickets would be sold at a price of $15.00.

ATTACHMENT

1. Chapel Hill Transit General Policy and Fee Schedule (18 KB pdf) (p. 4).