Item 11 - OC Streetcar Operations and Maintenance Cooperative Agreement

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OC Streetcar Operations and Maintenance Cooperative Agreement January 16, 2024 Page 2 The final agreement for the Project is the Operations and Maintenance Cooperative Agreement. This agreement must be in place in advance of the construction phase being complete to allow OCTA and the City time to prepare for the operation of the OC Streetcar System. The Project is approximately 80% complete as of the end of the last quarter. City and OCTA staff have reached consensus on the specific terms and conditions of the proposed agreement within the framework established by the approved MOU agreement. A summary of the key provisions of the proposed Operations and Maintenance Cooperative Agreement are as follows: General The proposed agreement establishes the roles, responsibilities, and commitments for system operations and maintenance of the OC Streetcar System (System). OCTA is responsible for operating and maintaining the System and Streetcar infrastructure; the City is responsible for maintaining City infrastructure. • The term of this agreement is for 50 years, with a 20-year extension at the discretion of OCTA. Further extensions are allowed upon mutual agreement. • Agreement may be terminated as follows: o City may terminate at end of the agreement term if OCTA abandons the portion in City Right -of -Way, OCTA disavows use rights in the Use of Right -of -Way agreement, or if the System discontinues operation for a consecutive period of one year. o OCTA may terminate if the System is determined to not be a viable mode of transportation due to lack of passengers, revenue, or funding. Financial OCTA is responsible for the payment of all operating costs of the System. As agreed to in the original MOU agreement, the City is responsible for ten percent (10%) of the annual sum of operating costs less any fare -box revenue upon the start of service. The City's share of annual operating costs is estimated to be $1 million. Operations The proposed agreement outlines assumptions, roles, responsibilities, and commitments related to the operational elements of the System, including, but not limited to, the following: • Train/traffic signal coordination • Traffic signal timing and prioritization • Data collection and system monitoring • Community relations • Advertising/ridership enhancement • Third -party permits • Special event coordination and operation • Emergency procedures • System security