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SECTION 5: FIVE-YEAR FINANCIAL PLAN
<br />FINAL REPORT Lf
<br />addition to the new purchases, 5 vans and 4 minibuses will be retired and not
<br />replaced in Year 1, and 1 van will be retired in Year 2. The expansion of the system
<br />is programmed to have the new east/west county route implemented in Year 2,
<br />assuming TTA funding for the north/south route; and the assumption of the E-Z
<br />Rider system in Year 3 Implementing the E-Z Rider service in Year 3 gives more
<br />time to negotiate the details with Chapel Hill.
<br />The radio system has been scheduled to be upgraded in Year 3, which permits a
<br />longer time to secure the funding from NCDOT and to amortize the costs of the
<br />recent vehicle purchase. Included in the price is the cost of a new transmitter and
<br />base station; the radios currently in the vehicles can be reused.
<br />The new scheduling system is required to allow OPT to reduce the advance
<br />reservation requirement and improve report generated statistical data. The timing of
<br />this purchase is for the year prior to the assumption of the E-Z Rider service to give
<br />OPT staff time to familiarize themselves with the new system's capability,
<br />The fareboxes have their purchase staggered reflecting their anticipated need. In
<br />Year 1, fareboxes are recommended for all minibuses, and Year 2 has three
<br />additional fareboxes purchased for the expansion minibuses. Year 3 sees the
<br />equipment of the van fleet coinciding with the assumption of the E-Z Rider service.
<br />Along with an increase in capital needs, the operating expenses will increase if OPT
<br />implements the recommended service expansion program. Exhibit 5-4 shows the
<br />incremental operating costs associated with the new services. These costs are in
<br />addition to the current $1,010,743 in annual operating costs.
<br />EXHIBIT 5-4 PROJECTED INCREMENTAL OPERATING EXPENSES
<br /> Year 1 Year 2 Year 3 Year 4 Year 5
<br /> FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Total
<br />Later Hours Hours 2,040 2,040 2,040 2,040 2,040
<br /> Cost/Hour $ 3739 $ 37.39 $ 37.39 $ 37 39 $ 37 39
<br /> Total cost $ 76,276 $ 76,276 $ 76,276 $ 76,276 $ 76,276 $ 381,378
<br />Orange Express Freq Hours 3,060 3,060 3,060 3,060 3,060
<br /> Cost/Hour $ 37.39 $ 37.39 $ 37.39 $ 37.39 $ 37 39
<br /> Total cost $114,413 $114,413 $ 114,413 $ 114,413 $ 114,413 $ 572,067
<br />East/West Route Hours 6,120 6,120 6,120 6,120
<br /> Cost/Hour $ 37 39 $ 37.39 $ 37.39 $ 3739
<br /> Total cost $228,827 $ 228,827 $ 228,827 $ 228,827 $ 915,307
<br />E-Z Rider Assumption Hours 21,420 21,420 21,420
<br /> Cost/Hour $ 37.39 $ 3739 $ 37.39
<br /> Total cost $ 800,894 $ 800,894 $ 800,894 $ 2,402,681
<br />TOTAL $190,689 $419,516 $1,220,410 $1,220,410 $1,220,410 $4,271,434
<br />Local Share $130,473 $ 287,041 $ 835,029 $ 835,029 $ 835,029 $ 2,922,600
<br />Incremental operating expenses are shown for offering later evening hours,
<br />increasing the frequency on the existing Orange Express, implementing the new
<br />East/West route, and assuming the operation of the E-Z Rider program. Costs are
<br />based upon $37.39 per hour, which is the existing hourly cost, plus an allowance for
<br />capital purchases and a 6 percent reserve The hours of each service have been
<br />Orange County 5-5
<br />COMMUNITY TRANSPORTATION IMPROVEMENT PLAN
<br />?,?il M,w
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