AGENDA #3

Friday, February 27, 2004

Transportation Department

Initial Budget Presentation to the Mayor and Council

2004 – 2005

I.          Mission Statement

Chapel Hill Transit’s mission is to

· provide safe, convenient, affordable, reliable, and responsive public transportation services to residents and visitors of the Chapel Hill, Carrboro, and University of North Carolina communities,

· be accessible, efficiently operated and supportive of a healthy environment and a sustainable local economy, and to

· connect and coordinate with other transportation means in the Research Triangle area providing an alternative for local and regional travel.

II.        Brief Services Description

• Provide fixed route bus service, EZ rider service for the mobility challenged, and shared ride service for the communities of Chapel Hill, Carrboro, and the University of North Carolina.
• Operate the Tar Heel Express – a park and ride shuttle service for special events.
• Oversee the taxi franchise approvals and renewals according to the Town Code of Ordinances.
• Ensure compliance with State and Federal regulations.
• Ensure that statistics are reported accurately and timely.

III.       Departmental Revenue Estimates -      

Revenue Source	2002-03 Actual Revenue	2003-04 Budgeted Revenue	Estimated 2003-2004 Revenue	Estimated Revenue 2004-2005
Operating	404,681	325,000	399,796	416,700
Federal/State	2,497,675	2,505,708	3,395,045	2,590,252
University	3,833,273	4,405,660	4,224,538	4,592,409
Carrboro	751,962	857,715	796,249	915,581
Chapel Hill	2,383,061	2,616,965	2,399,540	2,653,682
Total	9,870,652	10,711,048	11,215,168	11,168,624

• State and federal operating assistance funds continue to be shown based on recent discussions with state and federal transportation officials.
• The State Maintenance Assistance Program (SMAP) allocation for the current budget year was $889,337 higher than the original budget estimate.  This was a one-time disbursement of Highway Trust funds along with our usual payment.

IV.       Departmental Base Budget Cost Estimates-Transit

	2002-03 Actual	2003-04 Budget	2003-04 Estimated	2004-05 Requested
Personnel	6,912,105	7,575,837	7,170,104	8,102,677
Operations	2,199,011	2,513,189	2,533,705	2,573,159
Capital	759,536	622,022	1,511,359	492,788
Total	9,870,652	10,711,048	11,215,168	11,168,624

V.        Key Cost Issues

• The need to replace the transit facility at the end of 2006 is resulting in the increase in the capital reserve amount.  We began to reserve money to cover the local share (approximately 10%) of the replacement facility in the 2002-03 budget.  The cost for the new transit facility is approximately 19 million dollars.  The local share required to match the State and federal funds is $1,980,944.  The amount of local funds accrued for the project through this budget year is $500,000.  The partners have agreed to allocate the additional State Maintenance Assistance Program money received this year to the capital reserve to offset the local share costs of the new facility.  This would bring the amount accrued to $1,389,337.  The remaining $591,607 needed for the local share will be accrued in the next 3 budget years at $197,202 per year.
• The 2004-05 budget request reflects a $31,602 increase in salaries compared to the 2003-04 original budget request to include the remaining 3 months pay increases.
• The 2004-05 budget request includes a 4% reserve for pay adjustments for 9 months that equals $187,653.
• The worker’s compensation estimate reflects a 30% increase in the premiums that equals $68,993.
• The cost of supplies have increased by approximately $50,000 which includes increased telephones, computers, schedules, uniforms, tires, tools, and office supplies.

VI.       Key Programs or Services that are Going Well

• Fare-free has been well received by the community.  The ridership for the calendar year 2003 was 4.88 million and reflects a 16 per cent increase from 2002.
• The demand response transit services, EZ rider, feeder services, and shared ride were transitioned to a computer scheduling and dispatch system in the late fall of 2003.  The staff is becoming proficient with the system.  The system allows us to provide better customer service as we have separated the reservation and dispatch functions.

VII.     Key Programs or Services that Could be Improved

· The bus stop amenities including shelters, benches, maps, schedules, and ground surface at the stops could be improved.

· The interior cleanliness of the vehicles could be improved.

VIII.    Proposed Additions and Reductions

• A proposed change for the Maintenance Department would be to reallocate the open Assistant Director of Maintenance ($75,708) position resources to cover the following more pressing needs:
1. Change the part time Parts Clerk to full time                                          $18,960
2. Add 1 full time bus Service Technician (preventive maintenance)            $37,117
3. Add 1 part time bus Service Attendant (primarily tires)              $17,075

This would result in a savings of $2,556                                                 $73,152

• A proposed addition for the Maintenance Department would be the use of contract services for the following:
1. Bus shelter cleaning                                                                                 $6,990
2. Bus interior cleaning                                                                              $16,000
3. Snow removal (ice events) from the Park & Ride lots                  $9,600

                                                                                                                                    $32,590

• A proposed change for the Operations Department would be to convert the part time Dispatcher to full time.  This would require a transfer of $33,021 from the part time salary line to the full time salary line as we budgeted this employee at 40 hours.

• A proposed addition for the Operations Department would be the following positions for the EZ Rider/Shared Ride service:
1. Add 1 full time Reservationist                                                    $43,598
2. Add 1 part time Reservationist                                                  $23,757
3. Add 1 full time EZ Rider Driver                                                 $39,981
4. Add 1 part time Shared Ride Driver                                                      $22,313

§  $129,649

• A proposed addition for the Operation Department would be the addition of 5 part time Bus Drivers to adequately staff the operation and reduce the amount of overtime paid.  The cost for this would be $122,241.  Some of the cost would be offset in reduced overtime.