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Attachment 1 <br />MEMORANDUM OF AGREEMENT for <br />HILLSBOROUGH CIRCULATOR TRANSIT ROUTE <br />BETWEEN ORANGE COUNY, NORTH CAROLINA, <br />AND THE TOWN OF HILLSBOROUGH, NORTH CAROLINA <br />This Memorandum of Agreement is entered into this A day of d, 2013, by and <br />between Orange County (County) and the Town of Hillsborough (Town), North Carolina <br />(referred to collectively as the "Parties "). <br />WHEREAS, the County and the Town are public entities of North Carolina and are eligible to <br />enter into a binding contractual relationship with one another; and <br />WHEREAS, the parties have previously entered into a Memorandum of Agreement dated April <br />5, 2011, concerning the operation, management and funding of the transit services which are the <br />subject of this Agreement; and <br />WHEREAS, the parties desire to enter into this Memorandum of Agreement (hereinafter referred <br />to as Memorandum) in order to establish the mutually agreed upon conditions upon which the <br />County will provide certain transit services for the Town; and <br />WHEREAS, Orange Public Transportation (OPT) is a public transportation system operated by <br />Orange County Government in Orange County, North Carolina; and <br />WHEREAS, OPT and the Town developed a Hillsborough Circulator route, and OPT is <br />currently providing this service; and <br />WHEREAS, the Town wishes to continue to provide public transportation services through the <br />Hillsborough Circulator route in and around the Hillsborough town limits. <br />NOW, THEREFORE, the following Memorandum of Agreement is hereby entered into by the <br />County and the Town. <br />FUNDING <br />The route is currently funded by a Congestion Mitigation and Air Quality (hereinafter CMAQ) <br />grant jointly administered by the Federal Highway Administration (FHWA) and Federal Transit <br />Administration (FTA). CMAQ grants for transit operating assistance provide 80% of a project's <br />funding and require a local match of 20 %. When the Hillsborough Circulator route was initiated, <br />the duration of a transit operating assistance project's eligibility for a CMAQ grant was three (3) <br />years; however, new interim guidance released by the FHWA in its interpretation of the Moving <br />Ahead for Progress in the 21St Century (MAP -21) Federal surface transportation authorization <br />allows active CMAQ grants that had not fully exhausted their three (3) -year eligibility as of <br />September 30, 2012, to be extended for a duration not to exceed five (5) years. The North <br />Carolina Department of Transportation has provided and continues to provide the required 20% <br />local match for the first $198,000 in costs incurred for the project. After the fast $198,000 is <br />expended, the Town's previous and current contributions to the County will provide the required <br />20% local match to continue to support the project through the life of the CMAQ grant's two (2)- <br />K <br />