Contract - Capital Metropolitan Transportation Authority and City of Round Rock - 7/24/2025 Memorandum of Understanding between the
Capital Metropolitan Transportation Authority and the City of Round Rock
Regarding the Provision of Federal Transit Administration
Section 5307 and Section 5339(a)Program Funds
This Memorandum of Understanding("MOU")regarding the provision of Federal Transit
Administration Section 5307 and Section 5339(a) Program Funds is executed by and
between the City of Round Rock("City")a local government public entity and the Capital
Metropolitan Transportation Authority ("CapMetro"), a political subdivision of the State
of Texas organized under Chapter 451 of the Texas Transportation Code, each a "Party"
and collectively referred to as "the Parties." Accordingly, the Parties set forth their intent
and understandings as follows:
I. PURPOSE
CapMetro is the designated recipient ("Designated Recipient") of funding under the
Urbanized Area Formula Funding program(49 U.S.C. 5307 or Section 5307)and the Bus
and Bus Facilities Funding program (49 U.S.C. 5339(a) or Section 5339(a)) apportioned
by the Federal Transit Administration ("FTA") for the Austin urbanized area. This MOU
outlines the Parties' mutual intent and understanding with respect to CapMetro's
authorization of City as a direct recipient of FTA Section 5307 and Section 5339(a)funds.
City and CapMetro agree to work cooperatively and in good faith in the manner set forth
herein.
II. KEY TERMS
A. The Parties will comply with the requirements of the Urbanized Area Formula Funding
Program(49 U.S.C. 5307 and 49 U.S.C. 5339(a)).
B. Since City is not a member city of the CapMetro transit system, City intends to be a
direct recipient("Direct Recipient")of a share of the Section 5307 and Section 5339(a)
funding apportioned to the Austin urbanized area ("FTA Section 5307 and Section
5339(a) Program Funds").
C. During the term of this MOU, City is authorized to apply for a share of Section 5307
and Section 5339(a) Program Funds apportioned and distributed to CapMetro as
Designated Recipient for the Austin urbanized area, based upon the distribution
formula established by the FTA for fiscal years 2025(October 1,2024-September 30,
2025)and 2026(October 1,2025-September 30, 2026)(each an"FTA Fiscal Year").
D. The distribution of any amounts payable to City as a Direct Recipient is contingent
upon the successful apportionment and distribution of Section 5307 and Section
5339(a) funds to CapMetro as the Designated Recipient for the Austin urbanized area
for FTA Fiscal Years 2025 and 2026. If the FTA does not apportion or distribute
Section 5307 or Section 5339(a) Program Funds to CapMetro as the Designated
Recipient,City will not be eligible to receive Section 5307 or Section 5339(a)Program
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, City's
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CapMetro/Round Rock MOU
5307 and 5339(a)Funds—FY 2025-2026
Ro2S ! es
share of funding will be based upon the reduced amount. CapMetro will not be liable
to City for any damages, which are caused or associated with any FTA changes to the
amounts apportioned or distributed to the Austin urbanized area under Section 5307 or
Section 5339(a).
E. CapMetro is not obligated to provide any technical assistance or technical support to
City beyond the requirements of FTA Circular 9030.1 E.
F. City's designation as a Direct Recipient requires approval by the CapMetro Board of
Directors and the Round Rock City Council.
B. CapMetro's Responsibility:
A. CapMetro will remain the Designated Recipient of Section 5307 and Section
5339(a)Program Funds apportioned by the FTA for the Austin urbanized area;
B. CapMetro authorizes City to be a Direct Recipient of a share of the Section 5307
and Section 5339(a)Program Funds apportioned to the Austin urbanized area based
on the distribution formula established by the FTA for FTA Fiscal Years 2025 and
2026;and
C. CapMetro authorizes this designation once to include all grant applications for FTA
Section 5307 and Section 5339(a)Program Funds submitted by City to FTA during
the term of this MOU.
C. Round Rock Responsibility:
A. City will remain an eligible FTA grantee for the provision of transit services and
construction of transit facilities throughout the term of this MOU;
B. As a Direct Recipient, City will use FTA Section 5307 and Section 5339(a)
Program Funds to support the planning, capital development, and operation of
transit services for the Round Rock community in accordance with the terms of this
MOU;
C. City shall comply with all provisions of FTA Circular 9030.1E, Urbanized Area
Formula Program: Program Guidance and Application Instructions, Chapter II,
Section 8, Applicants Other than Designated Recipients, including but not limited
to providing its local share of matching, as amended; and
D. City shall comply with all applicable requirements set forth in state or federal law,
regulations,policies,and administrative practices,as amended.
III. TERM OF MOU
This MOU will be executed and effective as of the date of the last Party to sign (the
"Execution Date")and expire on the last day of the FTA Fiscal Year 2026.The Parties may
mutually agree, in writing,to extend the term of this MOU.This MOU may be terminated
or modified by thirty(30) days advanced written notice by either Party. In the event that
either Party shall be in default of its material obligations under this Agreement and shall
fail to remedy such default within thirty (30) days after receipt of written notice thereof,
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CapMetro/Round Rock MOU
5307 and 5339(a)Funds-FY 2025-2026
this MOO may be terminated at the option of the Party, not in default upon expiration of
the thirty(30)day period.
IV. INCORPORATION OF DOCUMENTS
This MOU incorporates by reference the following attachments:
A. Attachment A,resolution of the CapMetro Board of Directors approving this MOU.
B. Attachment B,Resolution of the Round Rock City Council approving this MOU.
V. MISCELLANEOUS
A.This MOU constitutes the entire agreement between CapMetro and City.No other terms
and conditions are applicable,unless amended and agreed to in writing by both Parties.
B.By execution of this MOU,neither Party waives or relinquishes any sovereign immunity
rights available to it by law except as otherwise stipulated by applicable laws.
VI. SIGNATORY
This MOO is hereby accepted and agreed to by the following individuals or officers who
are duly authorized to bind the Parties as set forth above:
Capital Metropolitan City of ound Rock
Transportation Authority
E-SIGNED by Dottie Watkins
By: on 2025-08-12 19:12:52 GMT By:
Dottie Watkins Name:
President&CEO Title: ,
Date: August 12, 2025 Date: call iL5
Approved as to form.
mlmSObtx c1e:W GMT
CMTA Legal Department
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CapMetro/Round Rock MOU
5307 and 5339(a)Funds-FY 2025-2026
Attachment A
CapMetro Board of Directors Resolution No.
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CapMetro/Round Rock MOU
5307 and 5339(a)Funds FY 2025-2026
2910 East 5th Street
Capital Metropolitan Transportation Austin,Tx78702
CapMetro Authority
Board of Directors Item #: AI-2025-1513 Agenda Date: 6/23/2025
SUBJECT:
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.
FISCAL IMPACT:
This action has no fiscal impact.
STRATEGIC PLAN:
Strategic Goal Alignment:
❑ 1. Customer ® 2. Community
❑ 3. Workforce E 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
Capital Metropolitan Transportation Authority Page 1 of 3 Printed on 6/25/2025
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Board of Directors Item #: AI-2025-1513 Agenda Date: 6/23/2025
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
Capital Metropolitan Transportation Authority Page 2 of 3 Printed on 6/25/2025
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Board of Directors Item #: AI-2025-1513 Agenda Date: 6/23/2025
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.
E-SIGNED by Becki Ross
on 2025-07-09 13:53:19 GMT July 09, 2025
Date:
Secretary of the Board
Becki Ross
Capital Metropolitan Transportation Authority Page 3 of 3 Printed on 6/25/2025
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Attachment B
Round Rock City Council Resolution No.
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RESOLUTION NO. R-2025-185
WHEREAS, the Capital Metropolitan Transportation Authority ("CapMetro") is the
designated recipient of Section 5307 and Section 5339(a) Program funding apportioned by the Federal
Transit Administration ("FTA") for the Austin urbanized area; and
WHEREAS, the City of Round Rock ("City") is a non-member city of the Austin urbanized
area, and the City desires to use its share of the Austin Urbanized Area Section 5307 and Section
5339(a) funding to support the planning, capital development and operation of transit services for the
Round Rock community; and
WHEREAS, the City and CapMetro wish to enter into a Memorandum of Understanding to
outline their mutual intent and understanding with respect to CapMetro's authorization of City as a
direct recipient of FTA Section 5307and 5339(a) Program Funds, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,TEXAS,
That the Mayor is hereby authorized and directed to execute on behalf of the City a
Memorandum of Understanding with the Capital Metropolitan Transportation Authority, a copy of
same being attached hereto as Exhibit "A"and incorporated herein.
The City Council hereby finds and declares that written notice of the date, hour, place and
subject of the meeting at which this Resolution was adopted was posted and that such meeting was
open to the public as required by law at all times during which this Resolution and the subject matter
hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act,
Chapter 551,Texas Government Code, as amended.
RESOLVED this 24th day of July,2025.
CRA MO N, Mayor
A 6.-Si T: City of Roun ock,Texas
ANN •ANKLIN, City Clerk
UlI2 NM;4923-f233 2421