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20 <br /> Chapter 1: Current Conditions <br /> Current daily operations require 8 to io vehicles at the peals, depending on demand. The most <br /> recent NCDOT Vehicle Utilization Data (VUD) report from April 2015 shows 9 vehicles in use <br /> at peals times. Five of the vehicles are currently out of service awaiting replacement, and 2 of <br /> the 5 are in the disposal process. It should be noted that based on NCDOT useful life <br /> guidelines, 12 of the vehicles are eligible for replacement in 2015 (including the 5 that are out of <br /> service), 4 vehicles are eligible in 2o16, and 1 in 2017 (based on mileage as of May 2015). Two <br /> new vehicles are on the property but have not been placed in service, and 5 replacement <br /> vehicles are due later this summer; therefore, 7 of the 12 needed replacements are in process, <br /> essentially replacing the 7 eligible vehicles that are in revenue service. <br /> One of the issues regarding vehicle utilization and replacement is related to the changes in the <br /> boundaries of the Durham-Chapel Hill Urbanized Area and the Burlington Urbanized Area. <br /> Much of Orange County, including Hillsborough and Chapel Hill (and the eastern half of the <br /> County) (see the map in Figure 1-1), are now within the urbanized area. Prior to the re- <br /> designation following the 2010 Census, a larger portion of the county's land area was defined as <br /> rural, and the funding for vehicle capital and administrative costs was provided by NCDOT <br /> under the Community Transportation program using Federal Transit Administration Section <br /> 5311 funds for rural areas. The existing fleet of OPT vehicles was funded with Section 5311 rural <br /> funding except for the 2 vehicles leased from Chapel Hill Transit. <br /> Going forward, OPT will need to develop a cost allocation methodology4 to allocate operating <br /> costs between the rural and urbanized area services and to allocate capital costs for joint <br /> capital projects (that serve both). Replacement vehicle funding will need to reflect the <br /> eligibility requirements of each program. Replacement Section 5311 vehicles cannot be used for <br /> services that are entirely within the urbanized area, though they can be used for services that <br /> originate in a rural area and go to a destination in an urbanized area (or the return trip). This <br /> situation will affect future vehicle procurement strategies as OPT will need to fund more <br /> vehicles (but perhaps not all) using Section 5307 funding in order to have the flexibility to use <br /> them entirely within the urbanized area (unless Chapel Hill Transit can provide service in these <br /> areas using urban funding). This holds true for the Hillsborough Circulator. <br /> 4 FTA C 9040.1G, e.Joint Urbanized and Rural Protects addresses subrecipients that receive both Section 5311 and 5307 <br /> funding.While it requires subrecipients to use Section 5311 only to assist the rural portion of the locality in question, it <br /> expects the subrecipient to develop a reasonable basis for allocating operating costs between the two funding sources, <br /> and to apply this procedure to"joint"capital projects. Capital replacement policies should also use program funds <br /> according to federal eligibility requirements. FTA further states that it will look to the state to make determinations on the <br /> reasonableness of the cost allocation methodology. NCDOT-PTD staff have agreed that vehicles funded with Section 5311 <br /> prior to the change in UZA boundaries can be used on services that were formerly rural but are now within the urbanized <br /> area boundaries.This is consistent with state policies In South Carolina (Clemson Area Transit now part of the Greenville <br /> Urbanized Area)and Virginia (Radford Transit now part of the Blacksburg Urbanized Area). <br /> KFH <br /> NCDOT Orange County 4 <br /> Transit Assessment Study <br />