Orange County NC Website
Browse       Search
Contract Operation: Many human service and rural systems in North Carolina are operated by <br /> private management firms under contract to public or private non-profit entities. Often this is done when <br /> there is no local agency with the capability of operating a coordinated system. It also has low-cost as a <br /> primary benefit. The low costs are partially from the use of low-wage drivers who do not have much if <br /> anything in the way of benefits, and partly from operating efficiencies. There is no way to know if OPT <br /> could be operated more cheaply by a private firm without going through a bid process, but it should be <br /> noted that the County would still require a transportation administrator to oversee the contracting process, <br /> monitor performance, work out service coordination agreements, prepare grants, etc. If one assumes that <br /> these administrative costs would be about $50,000 per year, OPT's current cost for the remaining part of <br /> the budget is about $1.19 per mile, which is in line with the mileage rate on Durham's DATALink <br /> paratransit service. Durham has projected that the rates would increase to $1.40 per mile by 1997. <br /> Because Orange County has been an FTA Section 18 and Section 9 recipient, the Section 13(c) labor <br /> protection provisions apply, so contracting out would involve making sure that current OPT employees <br /> did not have their conditions of employment deteriorate as a result. In the short term, this would likely <br /> mean that a contractor would have to offer current employees comparable wages and benefits, or the <br /> County would have to offer similar jobs in other departments. Cost savings from lower cost employees <br /> with fewer or no benefits would not be immediately apparent, but might follow after turnover among the <br /> contractor's staff. It should be noted that higher turnover is often related to lower service quality. <br /> Either of these institutional options can be explored further if the County or the Steering <br /> Committee desires it. <br /> SUMMARY <br /> A number of alternatives were suggested for improving and expanding public transportation <br /> services in Orange County. They include: <br /> Additional General Public Services <br /> 1. Open round trip Orange Enterprise route to the general public, which departs at 7:00 a.m. <br /> from Hillsborough to Chapel Hill and extend schedule hours to 6:00 p.m. <br /> 2. Create general public demand-responsive service during late mornings and early afternoon in <br /> Hillsborough in conjunction with Senior Center nutrition trips. <br /> -- demand-responsive by advance reservation, deviating from a general route. <br /> 3. Create Ridesharing program through TTA " Buspool " services. <br /> -38- <br />