AGENDA #4a
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Mary Lou Kuschatka, Transportation Director
SUBJ: Transit Service Options for 2001-02
DATE: April 4, 2001
This memo discusses the transit service improvements and funding options that have been brought forward through a series of monthly meetings of the Chapel Hill Transit Task Force. The task force consisted of representatives from the University of North Carolina, the Town of Carrboro and the Town of Chapel Hill the Transportation Boards and citizens. The service improvements and funding options for the Council’s consideration include:
The current cost allocation formula between the Town of Chapel Hill, the University of North Carolina, and the Town of Carrboro is a population based formula that divides the net cost of the transit service among the partners. If one of the partners requests a new service, then that partner pays the entire net cost of the new service for the first year. If the service measures up to the system standards, then the partners share the cost for subsequent years. The percentage division is as follows: Chapel Hill – 44.3%, UNC – 39.7%, Carrboro – 16%.
The improvement that would have the largest impact on the system is the fare free service option. Under this option, the University is willing to cover the total net cost for specific “University” services for current campus and express routes and all future University requested service every year. The remaining cost is then divided among the partners according to the population percentages.
If adopted, this option would allow anyone to ride Chapel Hill Transit buses and EZ rider service without paying a fare.
Implementing a fare free system beginning January 1, 2002 (please see attachment).
If a fare free system is implemented, we estimate a 10–20% increase in ridership system wide. Currently, there are 3 routes running at or over capacity during the peak periods (T, J, S). In order to meet the anticipated service needs of a fare free option, we estimate that 3 additional buses would be needed.
The fare free option includes the replacement of the P route with the Airport Road Express route (cost paid by UNC). The elimination of the P route would require an expansion of the A route to adequately serve the Hillsborough St. corridor.
The fare free option would require 3 additional buses added to our fleet. Chapel Hill Transit will be receiving 14 replacement buses and 3 additional buses (2 of these 3 are already intended for Southern Village service; 1 for A route) in the fall after the university resumes their full schedule (expected delivery date is mid-October). If the option to purchase up to 10 additional buses is exercised within 30 days of the bid award (March 26), then these additional buses could be delivered at the same time.
If we exercise the option to purchase additional buses between 30 days and 180 days from the bid award, then the normal delivery schedule of 12-28 months would apply.
Transit system changes, to be implemented prior to the University classes starting, are limited to options that do not require additional vehicles unless the decision to lease additional buses is pursued.
UNC* 1. Increase service to park and ride lots until 8:00 pm.
TCB.* 2. Increase service on the F route until 8:00 pm.
TCH* 3. New service to Southern Village / Meadowmont
UNC* 4. Additional campus shuttle EU (I recommend that this service starts as a mid-day (off- peak) service initially and a full day service as additional buses become available).
*Under the current cost sharing plan, the partner that requests new service pays for the net cost to operate the new service for the first year. Under the fare free cost sharing plan, the University has agreed to pay the net cost of services they request every year.
Options that could be implemented January 1, 2002
These options could be implemented January 1, 2002 and would require additional vehicles. These options would require:
UNC 1. Potential service to the proposed Jones Ferry park and ride lot.
(2 additional buses)
UNC 2. Friday Center / Hedrick Building Express
(2 additional buses)
UNC 3. EU Campus shuttle – Peak hour service
(1 or 2 additional buses)
Additional Buses
Each additional bus purchased requires local matching funds of $26,630. The University has indicated that it would cover the local match required for additional buses that service the University requested additions.
Preliminary 2001 – 2002 Transit Service Improvement
Options and Costs
1. Fare Free Service
This option has been explored as fare free for the entire system. Currently, there are two on campus routes that operate fare free and three that operate fare free on campus until 9:00 am.
COST
Under the fare free service option, the sharing of cost between Chapel Hill, Carrboro, and the University is calculated according to the method of sharing cost that was agreed to last year. It includes a step that assigns the University the total net cost for specific “University” service that includes two campus shuttle routes as well as express service to the hospital.
The cost-sharing model assumes that the University will continue to bear the total net cost for specific “University” services for subsequent years.
To calculate the cost distribution for 6 months of fare free service, we have run two cost allocation formulas, each for half of a year (population based formula for 1st half of the year and the fare free formula for the 2cd half of the year).
Cost Estimate For 6 Months Fare Free (start 1/1/02)
Distribution of Cost
Pop. based Fare Free based
July-Dec Jan-June
Net Cost $2,047,654 $2,690,638
Less University <$501,553>*
Cost to be $2,047,654 $2,189,085
shared
July-Dec Jan-June Total
Chapel Hill 44.3% $907,111 $969,765 $1,876,876
UNC 39.7% $812,919 $1,370,620 $2,183,539
Carrboro 16.0% $327,625 $350,254 $677,879
The fare free scenario includes additional service on the A route which is a result of elimination of the P route and would be included in the division of cost among the partners.
Additional cost A route Total additional cost
for fare free increase for 6 mos. fare free
Chapel Hill $ 40,707 $29,903 $ 70,610
UNC $538,034 $26,798 $564,832
Carrboro $ 14,703 $10,800 $ 25,503
Cost Estimate For Full Year Fare Free
Net cost of system $5,346,275*
Less UNC services <$957,836> U, RU, N/S (am ex), H, 2cd C
Balance for cost sharing $4,388,439
Cost Distribution of Balance Change over current distribution
Chapel Hill 44.3% $1,954,172 $ 117,819
UNC 39.7% 1,748,793 1,061,124
Carrboro 16% 685,474 22,378
$4,388,439 $1,201,321
Additional cost A route Total additional cost
For fare free increase for 12 mos. fare free
Chapel Hill $ 117,819 $59,805 $ 177,624
UNC $1,061,124 $53,595 $1,114,719
Carrboro $ 22,378 $21,600 $ 43,978
*Reflects removal of the P route from the system ($379,574). The University requested Airport Road Express would replace this service and the cost would be paid by the University ($270,000).
This cost estimate does not include any additional service. It is anticipated that additional buses will be needed to adequately handle the increased demand for service. An estimate of the increased annual operating cost to the system with the addition of 3 buses @ 12 hours per day is $405,000. In addition, there is a local share (10%) cost for the purchase of 3 additional buses of $80,000.
2. Increase Service to Park and Ride Lots
Currently, the service to the Park and Ride lots does not accommodate those working a later schedule. The last trip to the Carrboro Plaza P&R lot, C Express, leaves campus at 7:10 pm. The last trip to the 54 P&R lot, S Route, leaves campus at 7:01 pm. The last trip to the Eubanks Rd. P&R lot, N/S Express, leaves campus at 6:56 pm.
The proposed service improvement to these 3 routes is to extend service until 8:00 pm. This will accommodate those working shifts that get off between 7:00 pm and 8:00 pm as well as those that have late meetings.
COST
C Express .8 hrs/day x 250 days x $45.00 = $ 9,000
S Route 2.5hrs/day x 250 days x $45.00 = $28,125
N/S Express 3.5hrs/day x 250 days x $45.00 = $39,375
$76,500
3. Increase Service on F Route
Currently, the last trip to Carrboro on the F route leaves the Varsity bus stop at 6:30 pm. The current service does not accommodate those working a later schedule or attending a late meeting.
The proposed service improvement to the F route is to extend service until 8:00 pm. This would include 7:00, 7:30, and 8:00 pm trips from the Varsity bus stop to McDougle School in Carrboro.
COST
4 hrs/day x 250 days x $45.00 = $45,000
4. Southern Village / Meadowmont
The Town of Chapel Hill is considering the annexation of the Southern Village community on July 1, 2001. If the annexation takes place, a new route would be needed to provide transportation to this area. It is anticipated that the service would operate with 20–30 minute frequency. The initial planned service route connects Southern Village with the UNC campus/downtown area and continues to the Meadowmont development. The Meadowmont connection will serve that development as well as providing service to the north side of NC 54 East and increase the service between Friday Center Drive and the UNC campus.
If the Southern Village annexation does not occur this year, the Meadowmont portion of the proposed new route will still need transit service.
COST
12hrs/day x 2 buses x 250 days x $45.00 = $270,000
12hrs/day x 1 bus x 250 days x $45.00 = $135,000 (Meadowmont only)
5. Additional Campus Shuttle – EU
The University is interested in an additional campus shuttle to serve the Institute of Government and the Law School as well as relieving overcrowding on the existing campus shuttles.
COST
12hrs/day x 1 bus x 250 days x $45.00 = $135,000
6. Jones Ferry Park and Ride Lot
The Jones Ferry park and ride lot is currently in the design / development stage. The anticipated completion date is January 2002. The park and ride lot would be serviced during peak hours only with the cost estimated for a six month period.
COST
8hrs/day x 2 buses x 125 days x $45.00/hr = $90,000**
**service until 8:00 pm
7. Friday Center / Hedrick Building Express
The University is requesting an express shuttle to serve the Hedrick building (and the park and ride lot) with direct service from campus with 15-minute frequency from 6:40 am – 10:00 pm. This service is similar to the H express that is currently operated 3.8 hours per day.
COST
15.4hrs/day x 2 buses x 250 days x $45.00 = $346,500
less H route – 3.8hrs/day x 250 days x 45.00 <42,750>
$303,750
8. Airport Road Express
The University is requesting an express bus to serve campus with direct service between their Airport Road facilities, the P lot, and campus. This service would require 2 buses to meet the desired frequency of 15-minute service.
COST
12hrs/day x 2 buses x 250 days x $45.00 = $270,000
9. Reconfigure the A Route
The A route is the least productive route in the system and also the route with the longest headways. There is also a need for bus service in the developing Airport Rd. corridor (Estates and new phases of North Woods). We believe that the addition of 1 bus on this route and the extension of the existing bus service into the mid-day would give us the ability to provide more frequent service (to improve ridership) and serve new areas off of Airport Rd.
It will be necessary to add service to this route if the Airport Rd. Express route is implemented and the P route is eliminated.
COST
12hrs/day x 1 bus x 250 days x $45.00/hr = $135,000
NOTE: These cost estimates were done using a variable rate cost. This takes into consideration that the base hours already capture costs for staff, utilities, equipment and supplies.