MEMORANDUM

AGENDA #8

MEMORANDUM

TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Memorandum of Understanding for Public Transportation Services

DATE: February 10, 2003

The purpose of this memorandum is to provide for the Council’s review and consideration the draft 2003 Memorandum of Understanding for Public Transportation Services. Please see Attachment 1.

Resolution A would authorize the Town Manager to execute the Memorandum after it has been signed by the Local Partners, the Town of Carrboro and the University of North Carolina at Chapel Hill.

Resolution B would appoint 2 members to the Public Transit Committee as set forth in the Memorandum.

BACKGROUND

The Memorandum of Understanding for Public Transportation Services is the document that outlines the service responsibilities and the cost sharing relationship among the Town of Chapel Hill, the Town of Carrboro and the University of North Carolina at Chapel Hill. The Town of Chapel Hill operates, manages and has fiduciary responsibility for the provision of public transit services.

Historical Background

The Town of Chapel Hill, the Town of Carrboro and the University of North Carolina at Chapel Hill have participated jointly in the public transit system since the 1970s.

In 1974, the Town of Chapel Hill and the University entered into an agreement for the Town “to establish and operate a mass transit system in the community and on the University campus….” The Town began to operate the public transit system in the late 1970s and shared the costs with the Local Partners, the Town of Carrboro and the University of North Carolina.

In 1985 and 1987 respectively, the Town of Chapel Hill entered into separate Memoranda of Understanding with the University and the Town of Carrboro. The terms of the agreements were for five years and provided a framework for the provision of public transportation services. Separate annual contracts between the Towns of Chapel Hill and Carrboro and the University described specific responsibilities and operational expectations.

The Memorandum and the annual contracts were based on the cost allocation formula developed in 1978 by transportation consultants, Barton-Aschman Associates, Inc. The cost allocation formula, while based on measurable data, was difficult to understand and complex to administer. The formula made it difficult for the Local Partners to determine and explain their budgetary share for providing transit services.

In 1995 a joint staff committee was formed to review the cost allocation formula and identify alternatives to the existing formula. The staff committee was comprised of representatives from the Towns of Chapel Hill and Carrboro and the University. The group recommended the move away from the cost allocation formula to the population based methodology.

DISCUSSION

Current Memorandum of Understanding-1997

The current Memorandum of Understanding was signed in 1997 by Carrboro, the University, and Chapel Hill. The term of the Memorandum was for two years and could be extended for an additional three years with the consent of the three parties. This document provided for the transition from a complex cost allocation formula for cost sharing to a population-based method for net cost sharing. The partners have continued to operate under the terms of the 1997 Memorandum until a new Memorandum is agreed upon and signed by all parties.

Committee to Review 1997 Memorandum of Understanding

The Town Council at the January 14, 2002 meeting adopted a resolution that established a committee to review the current Memorandum of Understanding for Public Transportation Services. The Council invited the University and Carrboro to appoint two members to the committee that would include two members of the Town Council. Mayor Pro tem Pat Evans and Council Member Edith Wiggins were appointed to the committee by the Council. In addition, the members of committee included: Carrboro Alderman Diana McDuffee and Alderman Mark Dorosin; and University representatives Ms. Carolyn Elfland and Mr. Robert Knight. Mayor Pro tem Evans served as the chair of the committee.

In March 2002, the committee began a series of meetings and reviews of the 1997 Memorandum of Understanding. The Committee suggested changes that have been incorporated in the draft 2003 Memorandum.

Key Points In The Draft 2003 Memorandum Of Understanding

The key points of the draft 2003 Memorandum of Understanding for Public Transportation Services are summarized below. The Memorandum requires that:

A Public Transportation Committee (PTC) is established to which Chapel Hill, Carrboro and the University each appoint 2 representatives.

A staff work group, representing all of the Local Partners, would meet on a regular basis to review and discuss transit services.

Local Partners share the local net cost of transit services in the same proportions as the populations that each partner represents.

For any new service requested by a Local Partner the net operating cost of that service will be the responsibility of that partner unless all partners agree to share the cost for the new service.

Funding for routes identified as University routes will be provided by the University on a continuing basis.

Local Partners agree to review and negotiate their respective annual contracts with terms in substantial agreement with the Memorandum.

Local Partners agree to implement policies and procedures that encourage the use of public transportation.

Local Partners attempt to identify resources and facilities for use as potential park and ride lots.

Chapel Hill agrees to maintain and manage a transportation department with sufficient personnel, equipment and facilities to operate public transportation services including services for the disabled and public shuttle services to the University and other special events.

The University and Carrboro agree to not request that Chapel Hill eliminate or reduce established service with the intention of replacing that service either with their own resources or by subcontractor unless such change is agreed to by the other Local Partners.

The term of this Memorandum shall be 3 years and may be renewed for an additional 2 years by written agreement. Any partner may terminate participation in this Memorandum by giving at least 180 days written notice.

Review of Draft 2003 Memorandum of Understanding by the Carrboro Board of Aldermen

The Carrboro Board of Aldermen at its January 21^st meeting adopted a resolution authorizing the Town Manager to sign the 2003 Memorandum of Understanding. The Board, at the recommendation of the Carrboro Transportation Advisory Board, requested that the following three items: services for the disabled; information systems for the transit system; and environmentally friendly technologies, be included for consideration by the Public Transit Committee.

NEXT STEPS

The draft 2003 Memorandum of Understanding for Public Transportation Services provides a framework for the provision of public transit services. If the Memorandum is approved by the Council, we will begin the process to execute the document and schedule meetings of the staff work group and the Public Transit Committee. Should a Local Partner request a substantive change to the document we will report back to the Council. Alderman Diana McDuffe and Alderman Mark Dorosin were appointed to the Public Transit Committee.

RECOMMENDATIONS

Manager’s recommendations: That the Council adopt the following resolutions:

Resolution A, which would authorize the Town Manager to execute a 2003 Memorandum of Understanding for Public Transportation Services with the Town of Carrboro and the University of North Carolina at Chapel Hill.

Resolution B, which would appoint 2 representatives to the Public Transit Committee as established in the 2003 Memorandum of Understanding for Public Transportation Services.

ATTACHMENT

1. Draft 2003 Memorandum of Understanding for Public Transportation Services (p. 7).

A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A 2003 MEMORANDUM OF UNDERSTANDING FOR PUBLIC TRANSPORTATION SERVICES WITH THE TOWN OF CARRBORO AND THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL (2003-02-10/R-10a)

WHEREAS, the Towns of Chapel Hill and Carrboro and the University of North Carolina at Chapel Hill have worked together to provide public transportation services since the 1970s; and

WHEREAS, the Towns of Chapel Hill and Carrboro and the University desire to continue to work together to provide public transportation services; and

WHEREAS, the Town of Chapel Hill has operated the public transit system since 1974 and shared the costs with the Town of Carrboro and the University;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is authorized to execute a 2003 Memorandum of Understanding for Public Transportation Services with the Town of Carrboro and the University of North Carolina at Chapel Hill with the terms and conditions substantially as stated in the document presented at the Council’s meeting of February 10, 2003.

This the 10^th day of February, 2003.

A RESOLUTION APPOINTING TWO REPRESENTATIVES TO A PUBLIC TRANSIT COMMITTEE ACCORDING TO THE 2003 MEMORANDUM OF UNDERSTANDING FOR PUBLIC TRANSPORTATION (2003-02-10/R-10b)

WHEREAS, the Town of Chapel Hill, the Town of Carrboro and the University of North Carolina at Chapel Hill have worked together since the 1970s to provide public transportation services; and

WHEREAS, the 2003 Memorandum of Understanding for Public Transportation Services establishes a Public Transit Committee to review policies; and

WHEREAS, the membership of the Public Transit Committee is to include two representatives each appointed by the Town of Chapel Hill, the Town of Carrboro and the University;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council appoints ____________________ and _______________________ as the Council’s representatives to the Public Transit Committee as established in the 2003 Memorandum of Understanding for Public Transportation.

This the 10th day of February, 2003.