AGENDA #6b

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:              June 26, 2000

The attached resolution would authorize the Manager to enter into contracts with the University of North Carolina and the Town of Carrboro for provision of public transportation services for 2000-01.

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 Town of Chapel Hill has a separate multi-year Memorandum of Understanding with each of these parties regarding sharing of costs.  Discussions to renew the Memorandum of Understanding are on-going and it has been agreed to continue the terms of the existing agreement for another year. Under this agreement the net cost of services for FY2000-01 will be shared as follows: Chapel Hill – 44.53%, Carrboro – 15.62% and the University – 39.85%.  The Manager’s Recommended Budget for FY2000-01 is based on a continuation of this cooperative arrangement for public transportation services in the community. 

Discussions between Chapel Hill, Carrboro, and the University have also taken place regarding expansion of transit service during FY 2000-01.  The Manager has prepared a separate resolution for the Town Council’s consideration that would authorize this expansion of service, contingent upon the State adopting a FY 2000-01 budget with funding for the urban transit program similar to what was included in the current year.  This, in effect, would provide sufficient funds to support the desired expansion of transit service without increasing the local financial burden.

DISCUSSION

Based on the Manager’s Recommended Budget and preliminary discussions with the University, the net cost assigned to the University for fiscal year 2000-01 will be $1,552,986.  This includes a proportional share (39.85%) of the budgeted federal and State operating grant funds to offset their net cost.  It does not include $152,000 the University will pay the town for the operation of “fare-free” service on some campus routes.  This also excludes an estimate of $800,000 in University pass sales, which will be collected and paid to the Town.

Preliminary discussions between the Town of Carrboro and the Town of Chapel Hill estimate the Town of Carrboro’s net cost for transit services, Shared Ride and EZ Rider services for fiscal year 2000-01 will be $608,724 using the Manager’s Recommended Budget.  This includes a proportional share (15.62%) of the budgeted federal and State operating grant funds to offset their net cost.

RECOMMENDATION

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


A RESOLUTION AUTHORIZING EXECUTION OF CONTRACTS WITH THE UNIVERSITY OF NORTH CAROLINA, AND THE TOWN OF CARRBORO IN 2000-01 (2000-06-26/R-8)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby approves, and authorizes the Town Manager to execute on behalf of the Town, and in accord with adopted Memoranda of Understanding for transit services, contracts with the University of North Carolina and the Town of Carrboro for the Town to provide them public transportation services, provided said contracts shall not increase the cost of the Town of Chapel Hill transit services above the Town’s budgeted amounts and are substantially in accord with the adopted budget of the Town of Chapel Hill.

This the 26th day of June, 2000.