TO: Mayor and Members of City Council
THRU: Michael Gibson, Interim Assistant City Manager
Jeffrey Yates, ICMA-CM, Assistant City Manager
FROM: Tyffany L. Neal, MPA, Transit Director
Michelle Brooks, Interim Budget & Evaluation Director
DATE: May 11, 2026
RE:Title
Accept Federal Transit Administration NC 2026-020 Grant Award and Adopt Capital Project Ordinance 2026-40 to Appropriate Funds
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Executive Summary:
The City has been awarded a grant from the US Department of Transportation (USDOT) via the Federal Transit Administration (FTA) in the amount of $4,081,633.
Council is asked to accept this grant award and adopt Capital Project Ordinance (CPO) 2026-40 to appropriate $1,381,633 of the grant funding and $363,665 of required local match funding for the purchase of six replacement buses, five support vehicles, three bus shelters, mobile fare collection equipment, and associated expenses as well as employee training. The required local match will be provided by a transfer from the Transit Operating Fund.
The remaining $2,700,000 in grant funding is incorporated into the adopted FY26 Transit operating budget. This portion of the grant funding is included in the Transit Operating Fund to support non-fixed route ADA paratransit services, preventative maintenance, and general operating assistance.
Background:
The FTA provides federal grant funding for eligible public transportation projects. The Fayetteville urbanized area receives an annual apportionment under FTA’s Section 5307 Urban Formula Program. Once potential uses of the funding are identified by Transit staff, a formal application is submitted to FTA to access and receive these funds. The application outlines in detail the specific uses of the grant funding.
Issues/Analysis:
N/A
Budget Impact:
The required local match of $363,665 will be provided by a transfer from the Transit Operating Fund.
Options:
1. Adopt Capital Project Ordinance 2026-40 to appropriate the grant award and local match.
2. Do not adopt Capital Project Ordinance 2026-40 and provide further guidance to staff.
Recommended Action::Recommended Action
Staff recommends that the Council move to adopt Capital Project Ordinance 2026-40 as presented.
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Attachments:
FTA Grant #NC-2026-020 Award Letter
Capital Project Ordinance 2026-40