SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute an amendment to the Memorandum of Understanding with the City of Round Rock authorizing Round Rock to be a direct recipient of a portion of CapMetro’s FY2025 and FY2026 Federal Section 5339(a) Program funds.
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FISCAL IMPACT:
This action has no fiscal impact.
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Customer ☒ 2. Community
☐ 3. Workforce ☐ 4. Organizational Effectiveness
EXPLANATION OF STRATEGIC ALIGNMENT: CapMetro coordinates with non-members cities in the Austin urbanized area to meet transit needs in their communities and build a regional system. These efforts will result in a more robust transit network that can eventually be brought together through regional planning efforts.
BUSINESS CASE: As the Designated Recipient of the grant, CapMetro must concur with the use of federal funds allocated for the Austin urbanized area, which extends beyond the service area. CapMetro’s goal is to collaborate with these local communities to meet their transit needs now and in the future. By receiving a formulated portion of 5339(a) funding, the City of Round Rock will be able to seek funding for their bus and bus facility needs.
COMMITTEE RECOMMENDATION: The item was presented and recommended for approval by the Finance, Audit and Administration Committee on June 11, 2025.
EXECUTIVE SUMMARY: As the public transit provider of the Austin urbanized area, CapMetro is the Designated Recipient of Federal Section 5307 and 5339(a) Program funds for the urbanized area. Per Federal Transit Administration (FTA) guidelines, Section 5307 funds can be used for transit capital and operating assistance in urbanized areas and transportation planning and Section 5339(a) funds can be used to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities. In the past, CapMetro provided Round Rock with a portion of 5307 funds that were apportioned to the agency by the FTA as part of a pass-through arrangement outlined in an interlocal agreement (ILA). In FY2011, the ILA that authorized this arrangement was not renewed and Round Rock elected to become a Direct Recipient of FTA funds, coordinating directly with the FTA to submit independent grant applications.
In FY2013, an agreement was signed for FY2013 and FY2014 Section 5307 funds to be directly distributed to Round Rock. This agreement has been renewed on a biennial basis since that time. CapMetro is not required to provide technical support or assistance beyond any that may be required by the FTA when a Designated Recipient authorizes another public entity to be a Direct Recipient.
Round Rock is permitted to apply for a share of CapMetro’s FY2025 and FY2026 Section 5307 funds based upon the distribution formula that will be published in the federal register for the FTA FY2025 and FY2026 Section 5307 apportionments. This amendment will allow Round Rock also now to apply for 5339(a) funds.
The distribution of any 5307 and 5339(a) funds to Round Rock will be contingent upon the apportionment and distribution of 5307 and 5339(a) funds to CapMetro. If the FTA does not apportion or distribute 5307 and 5339(a) funds to CapMetro, Round Rock would not be eligible to receive 5307 or 5339(a) funds as a Direct Recipient. If the FTA reduces the amount of Section 5307 or Section 5339(a) Program Funds available to CapMetro as the Designated Recipient, Round Rock’s share of funding will be based upon the reduced amount.
These terms are included in the attached MOU between CapMetro and Round Rock. The MOU expires on September 30, 2026 and applies only to Section 5307 and Section 5339(a) funds appropriated in FY2025 and FY2026.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: Does not apply.
RESPONSIBLE DEPARTMENT: Finance
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RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2025-1513
WHEREAS, the CapMetro is the Designated Recipient of Section 5307 and Section 5339(a) Program funds apportioned by the Federal Transit Administration for the Austin urbanized area; and
WHEREAS, the City of Round Rock receives a portion of CapMetro’s Section 5307 funds in order to support the planning, capital development and operation of transit services for the Round Rock community, including demand response bus service, express bus service and reverse commute bus service; and
WHEREAS, the City of Round Rock has requested a portion of CapMetro’s Section 5339(a) funds in order to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities for the Round Rock community.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the President & CEO, or their designee, is authorized to finalize and execute a Memorandum of Understanding with the City of Round Rock that authorizes Round Rock to continue to be a Direct Recipient of a portion of CapMetro’s FY2025 and FY2026 Federal Section 5307 Program funds and now Section 5339(a) Program funds.
____________________ Date: ____________________
Secretary of the Board
Becki Ross