STAFF REPORT
Operations Committee, November 5, 2009

Municipal Agreement – Operation and Maintenance of Traffic Signals (EN10-028)
Consideration of entering into a municipal agreement with the North Carolina Department of Transportation for the maintenance and operation of traffic signals
Speaker:  Ms. Laura Cove

From:  Tim Bailey, P.E., Director of Engineering
Steve Brown, P.E., Director of Public Works and Utilities
Prepared by: Laura Cove, PE, Traffic and Transportation Engineering Manager and Bob Bilodeau, Operations Division Manager, Department of Public Works and Utilities
Approved by:  Benjamin T. Shivar, Town Manager
Approved by:  Michael J. Bajorek, Assistant Town Manager

Executive Summary:  The North Carolina Department of Transportation (NCDOT) has forwarded two Municipal Agreements to the Town for the maintenance and operation of the Cary Signal System.  Staff recommends entering into these Municipal Agreements with NCDOT.

Background:  The North Carolina Department of Transportation (NCDOT) and the Town of Cary are interested in executing agreements for the maintenance and operation of the Cary Signal System.  The agreement for maintenance is referred to as Schedule C and the agreement for operation is referred to as Schedule D.  These agreements are partnerships between the NCDOT and the Town to provide safe and efficient transportation systems for the motoring public. 

The purpose of the agreements are to establish consistent maintenance and operation of computerized traffic signal systems statewide, provide standardized reimbursement rates to municipalities, and define levels of service for the maintenance and operation of the system. 

The key components of the Schedule C agreement are 1) emergency maintenance; 2) preventive maintenance and 3) bench (component) maintenance.  The Town must meet rigorous maintenance schedules and submit detailed records of work accomplished within the system to NCDOT.  Based on an analysis of the number of intersections currently in the system and a projection of component failure rates, staff anticipates NCDOT to reimburse the Town approximately $408,900 in FY 2010 for maintenance and repairs to the system. 

The key components of the Schedule D agreement are the shared cost participation, performance audits and documentation and reporting requirements, and the level of service standards.  This is the second year that the Town is eligible for the Schedule D agreement and the intent is that similar agreements will be executed annually and the Town of Cary will bill the NCDOT quarterly for reimbursement.  The agreement is for a period of one year with a total reimbursement of up to $159,846, payable quarterly. 

Fiscal Impact:  Under the terms of the agreements, the Town could receive approximately $408,900 for signal maintenance under Schedule C and could receive up to $159,846 for signal operation under Schedule D from NCDOT.  These approximate amounts have been included as part of the FY 2010 adopted revenue budget within the general fund.

Staff Recommendation:  Staff recommends entering into the Municipal Agreement for both Schedule C and Schedule D with NCDOT.