Laserfiche WebLink
Award License and Lease Agreements with Greyhound Lines, Inc., <br />for Bus Passenger Services at the SARTC <br />November 15, 2016 <br />Page 3 <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, <br />Objective #2 (create new opportunities for business/job growth and encourage private <br />development through new General Plan and Zoning Ordinance policies), Strategy C (support <br />business development and job growth along transit corridors through the completion of critical <br />transit plans/projects including: The Fixed Guideway Project, Santa Ana Regional Transportation <br />Center Master Plan, Complete Streets and General Plan Circulation Element update). <br />FISCAL IMPACT <br />Approval of the site license agreement obligates Greyhound Lines, Inc., to compensate the City <br />$60,000 annually for the use of the license area of two bus bays at the SARTC. With an effective <br />date of December 1, 2016, anticipated FY 2016/17 revenue from the site license agreement is <br />$35,000. This agreement remains in effect until termination by either party with seven days' <br />notice. <br />Approval of the site lease agreement obligates Greyhound Lines, Inc., to compensate the City <br />$38,136 annually for the lease of interior office space at the SARTC. The three-year agreement <br />term begins December 1, 2016, and ends November 30, 2019. There is also an option for two <br />one-year extensions. The total anticipated revenue from this agreement is as follows: <br />FISCAL YEAR REVENUE <br />Agreement 3 -year Term <br />2016/17 $22,246 <br />2017/18 $38,136 <br />2018/19 $38,136 <br />2019/20 $15,890 <br />TOTAL $114,408 <br />Two 1 -year Extensions (Optional) <br />2019/20 $22,246 <br />2020/21 $38,136 <br />2021/22 $15,890 <br />TOTAL $76,272 <br />Lease revenues from these agreements will be received into the PWA — SARTC Operations <br />Rental — Greyhound Lines Inc. revenue account (No. 06717002-53810) and budgeted for <br />expenditure each fiscal year in the PWA SARTC Enterprise Operations expenditure accounts <br />(Accounting Unit No. 06717650). Revenues and corresponding expenditures for FY 2016/17 <br />were budgeted at $94,800. However, due to the delay in negotiations, the revised revenue <br />expectation is now $90,233.50, a reduction of $4,566.50. See Exhibit 3 for details. <br />25G-3 <br />