Board approves primary interlocal agreement with City to guide July 1 transition and phases of transfer

Trustees voted to approve the primary interlocal agreement with the City, a comprehensive framework that establishes schedules for asset and liability schedules, contract transitions, and phased handover tasks to support the July 1 transfer of operations. The agreement was the product of extensive committee review and city negotiation, and city council had already taken up a related hearing earlier in the week.

Presenters said the document was intended to protect the authority’s autonomy while providing the City necessary protections for co-mingled assets. Staff described Phase One deliverables (schedules for assets, liabilities, assignment of certain contracts and operational continuity tasks) and Phase Two criteria tied to federal and state approvals needed for the authority to become the designated grant recipient.

Several trustees requested additional specificity before full implementation: one trustee asked for assurance on physical space and technology equipment placement because the authority will be investing in significant technology assets; others asked for clarity on what federal or state approvals would concretely be considered gating conditions for Phase Two. Staff and city representatives said those items would be addressed in follow-up agreements and committed to presenting more specific language before signatures and implementation steps.

After those assurances, the board moved and passed the agreement. Trustees stressed that further implementation agreements and schedules will follow and requested prompt follow-up on real estate/space assurances and the list of FTA/state checklist items that will determine Phase Two timing.