Title
Interlocal Agreement for Continuation of Risk Management Services
Action
Action:
A. Adopt a resolution authorizing the City Manager, or his designee, to negotiate and execute an interlocal agreement with the Metropolitan Public Transportation Authority for the provision of risk management services, and
B. Authorize the City Manager to negotiate and execute all documents necessary to complete the interlocal agreement.
Body
Staff Resource(s):
Andrea Leslie-Fite, City Attorney
Liz Babson, City Manager’s Office
Matt Hastedt, Finance
Explanation
§ The city’s Risk Management division, located within the Finance Department, currently provides Risk Management services to all city departments as well as multiple outside entities including Mecklenburg County, Charlotte-Mecklenburg Board of Education, MEDIC, Charlotte-Mecklenburg Library, and the Charlotte Regional Visitors Authority.
§ Risk management services include, but are not limited to: procuring and binding of all necessary insurance coverages; workers’ compensation and property claim handling; and employee health and safety training.
§ As a department of the city, the Charlotte Area Transit System (CATS) is currently insured under the city’s Risk Management Fund.
§ To ensure a smooth transition and to mitigate risk, it is recommended that CATS continue to receive risk management services from the city’s Risk Management division through the transition of the department from the city to the Metropolitan Public Transportation Authority (MPTA) and that the MPTA receive risk management services from the city.
§ In securing insurance renewal coverage for fiscal year (FY) 2027, the city and the MPTA must both provide assurance to insurance underwriters that the two parties intend for the city to provide risk management services to the MPTA.
§ On February 11, 2026, the MPTA voted to request that the City of Charlotte provide risk management services and insurance coverage to the MPTA through June 30, 2027.
§ Expenditures are estimated to be $12 million and will be budgeted as part of CATS’ FY 2027 operating budget as in prior fiscal years.
§ Beyond the CATS transition period, any further city risk management services agreements with the MPTA may be considered separately.
Background
§ 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.
§ On November 4, 2025, Mecklenburg County voters approved the one percent local sales tax referendum as outlined by the PAVE Act.
§ 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.
§ Under the PAVE Act, CATS, currently a department within the City of Charlotte, will transition to the newly established MPTA.
Fiscal Note
Funding: CATS Operating Budget and Risk Management Fund
Attachments
Attachment(s)
Interlocal Agreement Draft
Resolution