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COPTA authorizes negotiations to end Herzog streetcar contract as agency plans to bring operations in-house

3299202 · May 14, 2025
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Summary

The Central Oklahoma Transportation and Parking Authority voted to authorize staff to negotiate closeout terms with Herzog Transit Services as part of a plan to bring OKC streetcar operations and maintenance into Embark.

The Central Oklahoma Transportation and Parking Authority on Thursday approved a resolution authorizing staff to negotiate the termination and closeout of the professional services agreement with Herzog Transit Services as part of a plan to bring operations and maintenance of the OKC Streetcar in-house under Embark.

The action gives the administrator or designee authority to negotiate final payouts and other closeout issues before the contract ends. "This item gives us authorization to negotiate the close out of that contract," said Jesse, the authority's administrator, describing items under negotiation such as paid time off payouts and reimbursement for parts already ordered by Herzog that will arrive after contract termination.

The authority's adoption of the resolution followed an electronic motion and vote; Robert recorded an "aye," and the chair announced the motion passes. Trustees voted on the consent and then on the individual resolution.

Nut graf: The negotiations are part of a broader budget proposal to transfer streetcar operations and maintenance from a contractor to Embark staff. The resolution does not itself terminate the contract; it authorizes staff to finalize the closeout terms and payments before an eventual operational transition.

Board discussion focused on administrative and payroll details rather than policy direction. Jesse said the negotiations were addressing accrued paid time off for employees covered by Herzog's contract and arrangements to reimburse Herzog for parts it already purchased. The resolution directs staff to complete those negotiations; no implementation date for when Embark would assume full operations was specified in the meeting record.

Trustees took the vote after brief discussion; the resolution passed by electronic vote. The transcript records the motion being moved and seconded, followed by the vote. No amendments were offered during the public portion of the meeting, and no additional conditions were placed on staff authority in the recorded motion.

The meeting later included other items related to labor contracts, capital planning and service impacts, which the authority discussed separately.