TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM, City Manager
FROM: Tyffany Neal, Transit Director
DATE: October 10, 2022
RE:
Title
Approval of a Memorandum of Understanding Among Public Transportation Providers in the Fayetteville, North Carolina Urbanized Area
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Objective D: To develop and maintain public transportation investments with high quality transit and airport services
Executive Summary:
Federal Transit Administration (FTA) apportions funding from FTA’s formula grant programs to the Fayetteville urbanized area. The City/FAST has been designated by the governor as the designated recipient for FTA funding for the Fayetteville area. These funds are to be made available to other providers that provide public transportation services within the urbanized area. In 2017 FAMPO approved a methodology for allocating funds to Cumberland, Harnett and Hoke Counties.
In past years, FAST sub-allocated the funds to NCDOT who in turn was responsible for preparing and submitting grant applications to FTA on behalf of these counties. In late 2021, NCDOT notified transit systems around the state, NCDOT would no longer apply and administer grants for urban areas. Cumberland, Harnett and Hoke Counties have elected to become grant subrecipients of the City who will now apply and administer grants on their behalf as the City has done in the past for other FTA grant programs.
The attached Memorandum of Understanding (MOU) formally establishes the grant recipient/subrecipient relationship between and the three counties. FAMPO approved the MOU in May.
Council is requested to approve the MOU by motion.
Background:
FTA provides grant funding through a variety of grant programs. Some programs award funds competitively while others are formula based. Funding from formula programs are apportioned annually to states and to urban areas. The City was designated by the governor to apply for and to receive formula funds apportioned to the Fayetteville area. Since the urbanized area is larger than just Fayetteville, the FTA funds are also to be made available to other public transit system operating within the area. In 2016, NCDOT required each urban area establish a process for allocating funds. That process or methodology was approved by FAMPO in 2017. The FAST system is typically allocated about 91% of the annual apportionment with the remainder set aside for use by the Cumberland, Harnett and Hoke County systems. These systems also receive rural area grant funds through NCDOT.
In past years, we used a “split letter” process that in effect transferred the amounts allocated to these counties to NCDOT who in turn would submit and administer grants on their behalf. Since these were urban program funds NCDOT had to do separate grants with FTA for urban funds and for rural funds. In late 2021, NCDOT informed these systems NCDOT would no longer apply for and administer urban area grants. These systems have elected to become grant subrecipients of the City in order to access the allocations that have been set aside for use by these systems. Annually, each system will be required to identify eligible projects to use these funds and the City will include these requests in the City’s annual grant.
As grants are awarded by FTA, the City/FAST will execute subrecipient grant agreements that will be registered with the Federal Subaward Reporting System (FSRS) prior to drawing any funds, just as we have done in the past for FTA’s Section 5310 program.
Issues/Analysis:
As FTA’s grant recipient, the City is obligated to provide grant oversite to ensure each subrecipient complies with FTA grant requirements and that expenditures are eligible for grant reimbursement. The City’s costs related to administering the grants are reimbursable from FTA planning funds.
Budget Impact:
The FTA funds are pass through funds from FTA and no City matching funds are required. Grant administrative and oversight costs will be reimbursed by grant funds.
Options:
Motion to approve the Memorandum of Understanding with Cumberland County, Harnett County and Hoke County; or
Provide other direction to staff.
Recommended Action:
Motion to approve the Memorandum of Understanding with Cumberland County, Harnett County and Hoke County
Attachments:
Memorandum of Understanding
Section 5307 Sub-Allocation Methodology
FAMPO Approval Resolution