Title
CATS Transit Governance Interlocal Agreement Amendment
Action
Action:
A. Adopt a resolution to approve the Termination Agreement for the Transit Governance Interlocal Agreement, and
B. Authorize the City Manager to negotiate and execute all documents necessary to complete the Termination Agreement for the Transit Governance Interlocal Agreement.
Body
Staff Resource(s):
Andrea Leslie-Fite, City Attorney
Liz Babson, City Manager’s Office
Explanation
§ In February 1999, the original Transit Governance Interlocal Agreement was approved by the City of Charlotte, Mecklenburg County, and the six Mecklenburg County towns of Cornelius, Davidson, Huntersville, Matthews, Mint Hill, and Pineville, to provide the relationships and mechanisms to guide the planning, financing, and implementation of an effective, efficient, responsive, and accountable integrated regional transit system.
- That Agreement created the Metropolitan Transit Commission (MTC) as an intergovernmental body to act as a policy board for the Charlotte Area Transit System (CATS).
- In November 2005, an Amended Transit Governance Interlocal Agreement was approved.
- In May 2024, a Second Amendment and Restated Transit Governance Interlocal Agreement was approved.
§ On July 1, 2025, the Projects for Advancing Vehicle-Infrastructure Enhancements (PAVE) Act was enacted by the North Carolina General Assembly. The PAVE Act authorized Mecklenburg County to obtain an additional source of revenue to expand and improve roadway systems and public transportation for the Mecklenburg County region by assessing a one percent local sales and use tax subject to voter approval.
§ The PAVE Act amends the laws governing funding for public transportation in Mecklenburg County and requires the termination of the Transit Governance Interlocal Agreement and the dissolution of the MTC by July 1, 2026.
§ Pursuant to Article 20 of Chapter 160A of the NC General Statutes, the city may perform jointly any function that it has the power to perform alone via a contract or agreement with other local governments and may enter into contracts and agreements to specify the details of these joint undertakings.
§ The attached resolution and termination agreement will terminate the Transit Governance Interlocal Agreement and dissolve the MTC as of July 1, 2026, in accordance with the PAVE Act.
§ The MTC will continue to fulfill its existing responsibilities, including CATS budget approval and reviewing and recommending all long-range public transportation plans through June 30, 2026.
Background
§ Following the enactment of the PAVE Act on July 1, 2025, Mecklenburg County voters approved the one percent local sales tax referendum as outlined by the PAVE Act on November 4, 2025.
§ On December 2, 2025, the Mecklenburg County Board of Commissioners adopted a resolution to levy the one percent local sales tax effective July 1, 2026.
§ On December 18, 2025, the inaugural MPTA Board Meeting was held, oaths of office were administered to the Board of Trustees, and Board positions were elected.
§ On March 25, 2026, the MTC discussed the termination of the Transit Governance Interlocal Agreement and dissolution of the MTC and requested all voting members (except the North Carolina Department of Transportation) present the attached resolution to their respective boards in advance of July 1, 2026.
Attachments
Attachment(s)
Resolution
Termination Agreement for the Transit Governance Interlocal Agreement