ORDINANCE NO. 221058

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Sponsor:  Director of the Public Works Department

Authorizing the City Manager to execute an Agreement Amendment with the Kansas City Streetcar Authority (“KCSA”) and Herzog Transit Services, Inc. (“HTSI”) for streetcar operations and maintenance services necessary to support funded streetcar expansion efforts; and recognizing this ordinance as having an accelerated effective date.

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WHEREAS, the City owns and the KCSA operates an approximately 2.2-mile modern streetcar line running generally along Main Street from River Market to Union Station (“Initial Phase”); and

WHEREAS, the Initial Phase is currently being extended south along Main Street, from Union Station to the general vicinity of the University of Missouri - Kansas City’s Volker campus (“Main Street Extension”) and north from the River Market to Berkley Riverfront Park (“Riverfront Extension”) to nearly triple of the size of the overall system; and

WHEREAS, an existing Operations and Maintenance Agreement exists with HTSI to provide operations and maintenance support for the streetcar system through April 30, 2026; and

WHEREAS, additional project testing, start-up, and operations and maintenance activities will be required to support the expanded system during the current contract term and fulfill federal project requirements; and

WHEREAS, an Operations and Maintenance Task Force was convened with representatives from KCSA, the Main Street Rail Transportation Development District (“MSRTDD”), and City Public Works, Legal, and Finance Departments to review alternatives and recommend a preferred alternative for meeting system-wide operations and maintenance needs during the existing contract term; and

WHEREAS, the Operations and Maintenance Task Force recommended amending the existing contract, within the existing April 30, 2026 term, to meet operations and maintenance needs; and

WHEREAS, KCSA and City representatives participated in joint negations with HTSI resulting in the Contract Amendment proposed for execution; and

WHEREAS, City Finance Department has reviewed the contract costs to confirm the amendment can be afforded within MSRTDD revenues at no cost to the City; and 

WHEREAS, the KCSA Board reviewed and approved execution of the amendment as presented; and 

WHEREAS, since opening in 2016 the downtown streetcar operation has yielded the most productive streetcar system in the country, carried over 10 million passenger trips, stimulated billions of dollars in economic development, and lead to more than $380 million in additional funding for current expansion for the benefit of Kansas City;  NOW, THEREFORE,

      BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1.  Authorizes the City Manager to execute the Agreement Amendment with the Kansas City Streetcar Authority and Herzog Transit Service for operations and maintenance support of the expanded streetcar system through the existing contract term, April 30, 2026.

Section 2.  That this ordinance, relating to the design, repair, maintenance or construction of a public improvement is recognized as an ordinance with an accelerated effective date as provided by Section 503 (a)(3)(D) of the City Charter and shall take effect in accordance with Section 503 of the City Charter.

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Approved as to form and legality:

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Nelson V. Munoz

Assistant City Attorney