Lee County approves MOU with Sanford to launch microtransit pilot and awards transit software to CTS

The Lee County Board of Commissioners on May 19 approved an interlocal memorandum of understanding with the City of Sanford to implement a microtransit pilot funded by a Mobility for Everyone Everywhere grant and authorized the county to negotiate a contract with CTS for a new transit software platform.

The action implements a partnership tied to a $3,400,000 grant that the City of Sanford secured from the North Carolina Department of Transportation (NCDOT). Angelina, Lee County staff overseeing the transit project, told commissioners the MOU and related resolution have been reviewed by both local legal teams and approved by NCDOT for grant purposes.

The MOU sets the framework for a microtransit service — an app- and call-center–driven, on‑demand transit option — to operate in designated zones within the city of Sanford. Angelina said the MOU leaves details such as hourly rates, final zone boundaries and hours of operation to be set later: “What we will work on moving forward is establishing the hourly rate, the final designated zones, the hours of operations, and any special terms and conditions for rate changes.”

Commissioners and staff discussed how the pilot will be governed after the three‑year grant term. Commissioner Martin voiced concern about longer‑term county liability if grant funding is not renewed. Staff responded that the county expects the city to pursue future grant funding and that the county will own the three vans and the new software purchased with grant funds. Tonya Sarratt, Lee County transit staff, said the pilot creates an opportunity to expand countywide if the initial zone performs well.

On vehicle and fleet logistics, staff said NCDOT currently funds 18 county transit vehicles; the Sanford grant will reimburse the county for three additional vans purchased through the grant, bringing the planned fleet to 23 vehicles when combined with existing vans. Staff said the three vans procured under the grant will carry the new microtransit branding while retaining the county’s existing COLTS logo on the vehicles.

Commissioners also approved awarding the county’s transit software bid to CTS and authorized staff to enter final negotiations and have the chair sign the contract once terms are settled. Angelina said the software procurement drew three proposals and that CTS was selected following demonstrations that included county IT staff and city representatives. The county staff noted the software is required to operate both paratransit and microtransit services.

On costs, staff said the chosen software includes an annual maintenance/training fee of about $36,000 per year. Angelina characterized the $36,000 figure as the recurring cost scenario; exact contract duration and final pricing would be set during negotiations. Commissioners asked about monthly fees, long‑term licensing and the contract term; staff said those details remain to be finalized in the contract negotiations.

Staff also described fare handling under state grant rules; staff said fares collected will be remitted to the city as part of the grant arrangement and that state reimbursement rules affect how those funds are returned to the local partners. Mike (Lee County staff) explained the mechanics of a recent month’s invoices and fares, noting the limits state rules place on how fare revenue is handled under the grant.

The board voted by voice to approve the MOU and its authorizing resolution and to award the software bid to CTS, with motions made and carried without roll‑call tallies recorded in the meeting minutes. Staff said a formal signing of the MOU with the City of Sanford was scheduled for the following day at 11:30 a.m. at the Buggy Factory in Sanford.

The MOU and software purchase are steps in a pilot that staff called a “true pilot project.” The microtransit advisory board will make recommendations to Sanford’s city council on operational details including hours and zones; the city council will adopt those operating rules. Staff emphasized that several implementation items remain open — final software contract terms, negotiated hourly rates, zone design, and the microtransit advisory board’s recommendations — and that the pilot’s continuation beyond the grant term depends on future funding decisions by the city and county and on the results of the pilot.