REPORT TO THE CITY COUNCIL FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: RANDALL W. MORRISON, PE, Assistant Director Public Works Department, Engineering Division JESUS AVITIA, PE, Deputy City Engineer Public Works Department, Transportation Project Management Section SUBJECT ..Title Actions pertaining to the Operation and Maintenance Cooperative Agreement with California High Speed Rail Authority (Council Districts 1, 2, 3, and 5): 1. Approve the Ownership and Maintenance Cooperative Agreement between the California High-Speed Rail Authority and the City of Fresno to establish a record of final ownership and perpetual maintenance for the California High-Speed Rail System located within the City of Fresno 2. Authorize the Public Works Director or designee to accept the lump sum payment of $5,000,000 for graffiti abatement costs related to the Operations and Maintenance Cooperative Agreement with California High Speed Rail (Subject to Mayor's Veto) ..Body RECOMMENDATIONS Staff recommends that the City Council (1) approve the Ownership and Maintenance Cooperative Agreement between the California High-Speed Rail Authority (Authority) and the City of Fresno (City) to establish a record of final ownership and perpetual maintenance for the California High-Speed Rail System located within the City of Fresno (the O&M Agreement), (2) accept the lump sum payment of $5,000,000 for graffiti abatement on behalf of the City of Fresno, and authorize the Public Works Director or designee to execute the O&M Agreement. EXECUTIVE SUMMARY City staff have worked closely with the Authority to identify all infrastructure components proposed with the California High-Speed Rail Project and negotiated a fair distribution of responsibilities based on the City's current responsibilities and the long-term benefits of the newly constructed facilities. Staff recommends approval of the O&M Agreement, which will establish a record of final ownership and perpetual maintenance of facilities, utilities, and project elements required for operation of the California High-Speed Rail System. The O&M Agreement will also provide a single lump sum payment of $5,000,000 to the City for the cost of graffiti abatement at accessible locations within the City street right-of-way, such as the tall retaining walls being constructed with the grade separations. BACKGROUND On May 3, 2012, the Council approved a Memorandum of Understanding with the Authority to develop a series a Cooperative Agreements for the High-Speed Rail Project. The O&M Agreement is part of that series of agreements required to establish final ownership and perpetual maintenance of the facilities, utilities, and project elements required for the operation of the California High-Speed Rail within the City. Facilities include the San Joaquin River Viaduct, the Downtown Fresno Viaduct, all grade separations from Herndon Avenue to Central Avenue, traffic signals and roads. Utilities include proposed traction power duct banks, fiber optic systems, and water and sewer systems. Project elements include items that may be part of a facility or utility such as security screens on overhead grade separations, drainage basins, retaining walls, slopes, and fencing. City staff have worked closely with the Authority over the last 10 years to identify all infrastructure components proposed with the California High-Speed Rail Project. Staff has negotiated a fair distribution of perpetual maintenance responsibilities based on the City's current responsibilities and the long-term benefits of the newly constructed facilities. The O&M agreement is similar to the existing maintenance agreements between the City and Caltrans where City facilities cross the State right-of-way. Staff recommends approval of the O&M Agreement, which will establish a record of final ownership and perpetual maintenance of facilities, utilities, and project elements required for operation of the California High-Speed Rail System. The California High-Speed Rail Project proposes over a dozen new grade separation structures along the corridor within the City. While these new grade separations will create much safer and more efficient railroad crossings for Fresno residents, these new structures create the potential for an increase in graffiti abatement costs long-term. The Authority recognizes this increased maintenance responsibility and has agreed upon contributing toward the long-term cost. The O&M Agreement will provide a single lump sum payment of $5,000,000 to the City for the cost of graffiti abatement. The City Attorney's Office has reviewed and approved the agreement as to form. ENVIRONMENTAL FINDINGS Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378, this item is not a project for the purposes of CEQA. LOCAL PREFERENCE Local Preference was not implemented as this is not a bid or award of a construction or services contract. FISCAL IMPACT The California High-Speed Rail Authority will provide a one-time Lump Sum payment of Five Million Dollars ($5,000,000) pursuant to this agreement and there will be no impact to the General Fund for the foreseeable future. The lump sum payment will be deposited into a unique special revenue fund. Appropriations for graffiti abatement costs will be included in the City's future annual budgets utilizing the deposited funds as additional facilities are constructed and put into service. Attachment(s): Ownership and Maintenance Cooperative Agreement Vicinity Map