AGENDA #4d
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Resolution
Authorizing Contracts with the
DATE:
The attached resolution would
authorize the Manager to execute contracts with the
As a part of the budget process each year, the Council along with the University and the Town of Carrboro determine the level of transit services that will be offered the next fiscal year and identify the cost of the service to each of the partners. The details of the service to be provided are indicated in the annual service contracts.
In the past a Memorandum of Understanding among the Town
of
The transit system is funded by federal and State grants, money received as fares, and contributions from the partners. Under the terms of the latest Memorandum of Understanding, the contributions from the partners are based on a population based allocation system. The system costs remaining, after the farebox revenue and federal and State grant monies are applied, are allocated based on the percentage of the service area population that exists in each jurisdiction. In the case of new service, the requesting partner pays for the new service in full for the first year. If the service meets the system standards, then the service is included in the base budget and all 3 partners share the cost in the subsequent years.
DISCUSSION
The 2001-2002 Budget adopted by the Council for transit services included the following service changes:
· Extended evening service to the park and ride lots on the S, N/S, and C express routes.
· Implementation of new service to the Jones Ferry park and ride lot in 2002.
· Addition of new University routes in January including the Airport Road Express, an east campus circulator route, and an additional route servicing the Friday Center and Hedrick building.
The fare free transit service that will be offered in January 2002 will be applicable to all riders of the transit system and is therefore an enhancement that benefits all three partners.
The Town of Chapel Hill will have to enter into separate contracts for transit services with the Town of Carrboro and the University due to the different cost sharing arrangement that will be used in January 2002 when the transit system is going to be a fare free system.
The first contract will be for July 1, 2001, through December 31, 2001, and will allocate the costs among the partners using the current cost sharing population-based formula. The system costs remaining after the farebox revenue and federal and State grant monies are applied are allocated based on the percentage of the service area population that exists in each jurisdiction.
Population of Chapel Hill* 48,715 46.29%
Population of Carrboro* 16,782 15.95%
University of North Carolina** 39,732 37.76%
105,229
*Based on State population figures published in December 2000.
**Based on figures provided by UNC and includes 24,872 students, 5,067 Hospital employees, and 9,793 University employees.
The second contract will be for January 1, 2002, through June 30, 2002, and will be for fare free service. Under this arrangement, the University will pay for all University routes in full, including express park and ride services to the campus, for this year and all subsequent years. Specifically, the University routes include the U, RU, H, N/S (am express), C (2nd bus), as well as services that will be added in January 2002; an additional campus circulator (EU), the Airport Road express, and the expanded H route. The remaining transit system costs will then be divided among all three partners according to the population percentages.
The Town’s budget for 2001-2002 is based on these cost-sharing models in partnership with the Town of Carrboro and the University for public transportation services in the community.
The University’s net cost for transit services for fiscal year 2001-2002 will be $2,823,500. This includes a proportional share (37.76%) of the budgeted federal and State operating grant funds to offset their net cost.
The Town of Carrboro’s net cost for transit services, Shared Ride and EZ Rider services for fiscal year 2001-2002 will be $693,250. This includes a proportional share (15.95%) of the budgeted federal and State operating grant funds to offset their net cost.
That the Council adopt the attached resolution authorizing the Manager to execute contracts 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 FOR PUBLIC TRANSPORTATION SERVICES IN 2001-02 (2001-09-10/R-4)
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, contracts with the University of North Carolina at Chapel Hill 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 10th day of September, 2001.