MEMORANDUM

to:                  Roger L. Stancil, Town Manager

from:            George Small, P.E., Director of Engineering

                        Kumar Neppalli, E.I.T., Engineering Services 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:            October 15, 2008

PURPOSE

The purpose of this report is to request that the Council 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 $5,000 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.

BACKGROUND AND DISCUSSION

The Town entered into agreements with the State for reimbursement of costs incurred by the Town associated with maintenance of field traffic signal equipment that serves Chapel Hill and Carrboro. The key provisions of the agreements are:

• The Town is responsible for field maintenance of traffic signals equipment including general/mechanical repairs, preventative maintenance, electronic repairs, and emergency maintenance.
• The Town is responsible for the maintenance and operation of the computerized traffic signal system including system computer(s), peripherals, interconnects and related equipment. As part of this agreement, the State reimburses the Town for 92 percent of the cost of the Town Traffic Operations Engineer position and provides the Town with certain signal system computer equipment.

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 $5,000 for maintaining the traffic signal system and associated equipment.

The provisions of the existing and revised agreements would be unchanged with the exception of the increased reimbursement rates.  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.

RECOMMENDATION

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.