AGENDA #3b

 

BUDGET WORKING PAPER

 

TO:                  W. Calvin Horton, Town Manager

 

FROM:            Mary Lou Kuschatka, Transportation Director

 

SUBJECT:            F Route Service Expansion Request

 

DATE:            June 13, 2001

 

This memo discusses the request from the Town of Carrboro to include the F route service improvement in the base transit budget to be funded by all three partners in the first year.  The F route provides service between Colony Woods in Chapel Hill and the McDougle School in Carrboro with intermediary stops on the UNC campus.

 

BACKGROUND AND DISCUSSION

 

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.  The percentage division is as follows: Chapel Hill – 44.3%, UNC – 39.7%, Carrboro – 16%.  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.  After the first year, the partners share the cost for subsequent years. 

 

The Town of Carrboro requested service improvement on the F route to increase service from 6:30 p.m. to 8:00 p.m. weekdays for the upcoming year.  The cost for this improvement is $45,000 per year.

 

The Town of Carrboro is requesting consideration of placing the cost for service improvement to the F route in the base budget based on the area served by the F route.  Please see the attached letter from Michael Nelson, Mayor of Carrboro. 

 

The cost allocation for the service improvement on the F route if all three partners fund it beginning in the first year would be as follows:

 

                                    Town of Chapel Hill               $19,935    (44.3%)

                                    UNC                                        $17,865    (39.7%)

                                    Town of Carrboro                  $  7,200    (16%)

                                                                                    $45,000

 

If the Town Council agrees to place the cost for service improvement on the F route into the base budget, the cost to the Town of Chapel Hill would be $19,935.

 

 

ATTACHMENT

 

1.      May 23, letter From Mayor Michael Nelson (p. 2).