Title
Consider/Discuss/Act on a Resolution Amending the Interlocal Agreement with Dallas Area Rapid Transit to Provide Micro-Transit Service for 2027
Summary
COUNCIL GOAL: Goal 5: Enhance the quality of life in McKinney
Strategy 5.3: Develop sustainable quality of life improvements within the City of McKinney
MEETING DATE: October 5, 2026
DEPARTMENT: Housing and Community Development
CONTACT: Jasmine Tucker, Transit Administrator
Margaret Li, Director of Housing and Community Development
RECOMMENDED COUNCIL ACTION:
• Staff recommends that the McKinney Urban Transit District (MUTD) Board approve the proposed Resolution amending the existing Interlocal Agreements (ILAs) with Dallas Area Rapid Transit, Local Government Corporation (DART) to provide micro-transit services (known as the Collin County Transit program) and to utilize the DART GoPass application for an estimated $2,275,304 and $60,000 respectively (operation costs vary depending on program utilization). The total estimated operational cost for FY27 is $2,335,304.
ITEM SUMMARY:
• This item is to consider/discuss/act on the one-year extension to the current ILAs with DART.
o Micro Transit Services
o DART GoPass Subscription and License
• On September 1, 2026, the MUTD Board directed staff to pursue a one-year extension with DART to continue providing micro-transit services.
BACKGROUND INFORMATION:
• On November 15, 2021, the City Council, on behalf of the MUTD, entered into an ILA with DART to provide microtransit services in the McKinney Urbanized Area.
• On March 4, 2025, the City Council adopted a Resolution approving the first amendment to exercise the first option year for the ILA.
• On October 6, 2025, the City Council adopted a Resolution approving the second and final option year of the ILA which is set to end on December 31, 2026.
• DART currently provides dedicated wheelchair accessible and non-dedicated transit services for the Collin County Transit program.
o The turnkey service provides microtransit shared rides to seniors, disabled, and low-income riders.
o Services are available on weekdays from 6:00 AM to 8:00 PM and weekends from 8:00 AM to 8:00 PM.
o As the project manager DART currently contracts with the following subcontractors:
§ Spare Labs - software platform for and call center
§ Trippp Consulting - reporting and operations management for Lyft and Uber
FINANCIAL SUMMARY:
• In 2020, the city received $8.8 million from the Coronavirus Aid, Relief, and Economic Security (CARES) Act to support public transportation; including planning, capital, and operating expenses. There is no local match requirement for CARES funding.
• Approximately $5.2 million remained at the beginning of September 2025; with a projected $908,600 to be drawn down for Fiscal Year 2026.
• In addition, MUTD receives funding from the Federal Transit Authority and Texas Department of Transportation.
o Federal funds include a 50/50 local match requirement
o State funds and member cities contributions are used as operating local match
• The programs fares are calculated based on distance traveled:
o Trips up to 7 miles are $5 per person per trip
o Trips greater than 7 miles will cost an additional $0.75 per mile
o Trip greater than 23 miles are capped at $17 per person per trip
• The total estimated budget for the one-year extension is $2,275,304 (costs vary depending on the amount of ridership). Funding will be provided through the following sources:
|
Funding Source |
Amount |
|
FTA 5307 Funds |
$640,637 |
|
TXDOT Operating Funds |
$305,637 |
|
Member City Contributions |
$335,000 |
|
CARES Funds |
$1,054,030 |
|
Total |
$2,335,304 |