TO: Mayor and Members of City Council
THRU: Telly C. Whitfield, PhD, Assistant City Manager
FROM: Randy Hume, Transit Director
Kelly Olivera, Budget and Evaluation Director
DATE: June 13, 2022
RE:
Title
Adoption of Special Revenue Fund Project Ordinance 2022-12 to Appropriate FTA Grant NC-2022-025 FTA for Section 5307 - American Rescue Plan Act Funding
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal IV: Desirable Place to Live, Work and Recreate
Objective 4.1: To maintain public transportation investments with high quality transit and airport services
Executive Summary:
The City has been awarded grant NC-2022-025 by the Federal Transit Administration (FTA) for transit operating assistance from urban formula funding made available by the American Rescue Plan Act (ARPA). Special Revenue Fund Project Ordinance (SRO) 2022-12 will appropriate $247,421 of federal transit funding to pass through to Harnett County and Hoke County. As grant subrecipients to the City, Harnett will receive $71,397 while Hoke County will receive $176,024 in 100% FTA funding for operating assistance in FY 2023. A portion of FTA urban formula funds are allocated each year to other transit systems that provide service within the Fayetteville urbanized area. The FTA grant also provides $4,163,122 to the City for FAST operations. These funds were appropriated the City’s fiscal year (FY) 2022 operating budget.
It is also requested that City Council authorize the City Manager to execute any related grant subrecipient agreements related to the pass through of FTA funds.
Background:
The Fayetteville urbanized area receives annual apportionments for numerous FTA formula programs. The City is the designated recipient for urban transit funding for FTA funds apportioned to the Fayetteville area. In addition to Cumberland County, the urbanized area also includes portions of Hoke, Harnett and Robeson Counties. Systems that provide public transit services within our urbanized area are entitled to a share of the FTA funds. In accordance with FTA guidelines, FAST, FAMPO and the Community Transit Programs (CTP) in Cumberland, Harnett, and Hoke counties agreed to a formula for allocating the annual apportionments.
Since 2017, the allocations for the other systems were sub-allocated or split to NCDOT who then applied for and administered grants for CTP systems. NCDOT already administered and provided grant compliance oversight for other non-urban grants these systems received. As agreed, in 2020 and 2021 FAST split CARES and ARPA funds to NCDOT to be used on behalf of Harnett and Hoke systems. In late 2021, NCDOT notified transit systems around the state that they would no longer prepare applications, administer or oversee urban grants for these small systems. Cumberland, Harnett and Hoke Counties have requested to become subrecipients of the City/FAST for these funds.
The ARPA funds originally split to NCDOT have been returned to Fayetteville’s account. The proposed SRO will set up the grant project so these FTA funds can be claimed as these counties incur eligible expenses, be drawn and passed through for reimbursement. Each county will also be required to enter into a grant subrecipient agreement with the City that outlines provisions, obligations and agreement to comply with FTA grant guidelines. It is requested that City Council authorize the City Manager to sign and execute these agreements as they are completed.
In addition to the funds that will be used by Harnett and Hoke Counties, FTA grant NC-2022-025 is also providing the City $4,163,122 in 100% federal operating assistance for FAST. These funds were included in the FY2022 operating budget.
Issues/Analysis:
The City as the primary grant recipient is required to ensure subrecipients comply with applicable grant requirements for each related FTA program. Transit has developed grant oversight procedures and a grant checklist that are used to ensure that subrecipients adhere to all FTA requirements. The City is allowed to recover costs related to subrecipient oversight from FTA grants.
Budget Impact:
The APRA grant provides 100% FTA funding for operating assistance. No matching funds are required from the City or subrecipient counties.
Options:
1) Adopt Special Revenue Fund Project Ordinance 2022-12 and authorize the City Manager to execute the subrecipient grant agreements with Harnett County and Hoke County;
2) Do not adopt the SRO and provide further direction to staff
Recommended Action:
Staff recommends that Council move to adopt Special Revenue Fund Project Ordinance 2022-12 and authorize the City Manager to execute the subrecipient grant agreements with Harnett County and Hoke County
Attachments:
Special Revenue Project Ordinance 2022-12
FTA Grant NC-2022-025