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Coborrus County Transit System Finol Report — September 2015 Many private for - profit contractors (i.e. First Transit, Coach USA, Transdev, etc.) succeed because they reduce costs via streamlined management practices, flexible procurement practices and/or offering lower wages. However, they still need to make a reasonable profit to sustain the relationship. Wake County Coordinated Transportation operates primarily as a service agency /DHS delivery method with adequate public transportation availability (i.e., seats available concept). The feature that makes WCTS / TRACs efficient is a performance -based contract instrument that was negotiated by the transit director with a private provider. This contract delineates performance standards and quality indicators, including financial penalties for unsatisfactory service and financial incentives for superior service delivery. The WCTS contract even has cash incentives for achieving performance targets, which trickle down as driver bonuses. Also, Wake County has a completely separate branded service called TRACS; this is perhaps the best example of clear branding on vehicles which specifically provide general public transportation to residents of Wake County residing in non - urbanized areas. This service is also delivered under the same contract as the WCTS service. CCTS could similarly brand any vehicles that are focused on employment, education, or economic development, i.e. alternatives that may come out of the CTSP for vanpools, feeder services and connector services to CATS and CK Rider Transit. TRACS Service is priced by zone to reduce the miles of travel per trip and help recover an equitable share of the cost. WCTS eligibility is similar to COTS, in that it is based on sponsorship by participating agencies /programs such as Medicaid, Public Health, Work First and other social service programs. The big difference is that WCTS uses a contractor to manage operations and deliver service, while the WCTS staff are primarily call takers who specialize in booking rides efficiently on WCTS vans or brokering the trips to other options (e.g., GO Raleigh Transit bus or Raleigh taxis). With some work, this example could be adapted to serve Cabarrus County. Transit Resides as a Separate Department of Transportation Outside of DHS In order to promote greater independence from the DHS mission, it may be possible to restructure the County organizational chart (see Figure 19 on next page) and place CCTS directly under the Deputy County Manager. Alternatively they might fit well under Emergency Management, as there is already an effective partnership between Emergency Management and COTS. Lincoln County operates effectively under a similar arrangement. The EMS location would be the correct choice for the shared radio /data communications capability. This arrangement might also have the added benefit of access to Homeland Security funding. Attachment number 1 \n F -3 Page 150