Title
Interlocal Agreement to Support the Administrative Start-Up of the Metropolitan Public Transportation Authority
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 (MPTA) to support the administrative start-up of the MPTA,
B. Authorize the City Manager to negotiate and execute all documents and contracts necessary to complete the interlocal agreement and to provide administrative start-up support to the MPTA up to an amount of $4,300,000, and
C. Adopt a budget ordinance appropriating $4,300,000 in fund balance in the CATS Operating Fund for transfer to and appropriation in the CATS Capital Projects Fund.
Body
Staff Resource(s):
Andrea Leslie-Fite, City Attorney
Liz Babson, City Manager's Office
Explanation
* The Projects for Advancing Vehicle-Infrastructure Enhancements (PAVE) Act specifies several tasks that the Metropolitan Public Transportation Authority (MPTA) must complete no later than July 1, 2026, including:
* Establishing Board governance policies,
* Developing financial and operational policies,
* Creating Human Resources and Information Technology plans, and
* Creating an asset acquisition timeline and plan.
* To support the MPTA and PAVE Act requirements that must be fulfilled no later than July 1, 2026, the city proposes to enter into an Interlocal Agreement with the MPTA.
* Additionally, the city will appropriate $4.3 million in existing fund balance from the CATS Operating Fund to the CATS Capital Projects Fund to support eligible administrative startup costs to ensure the MPTA is positioned for long-term organizational success.
* This fund balance is comprised of existing Article 43 sales tax revenues, which must be used for expenses related to the public transit system, as permitted by the State of North Carolina. The one-percent local sales and use tax approved by voters on November 4, 2025, ...
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