METRO Dwight A Forel! Chet Execute Ofc ‘and General Gio exz-e10 ‘ereli@gomet.com January 4, 2016 ‘The Honorable John Cranley Mayor City of Cincinnati 1801 Plum Street Cincinnat, Ohio 45202, Dear Mayor Cranley: | wanted to follow-up on the meeting you requested on Wednesday, December 16” related to the City's streetcar revenue, Under the terms of the Operating & Maintenance Intergovermmental ‘Agreement (OMIGA) between the City of Cincinnati and the Southwest Ohio Regional Transit Authority, SORTA Is responsible for developing annual ‘operating budgets for Cty approval. The City is responsible for providing ‘SORTA with the revenue projections for the majority ofthe eligible funding ‘sources so that SORTA can develop the budget within available resources, as required In order to meet deadlines as outlined In the OMIGA and related to ‘workforce mobilization for streetcar operations, SORTA will need the City’s final revenue projections for the first year of operations of the Cincinnati Streetcar by February 1, 2016, ‘The February 1" revenue commitment is critical due to actions that would need to occur ifthe City should decide to reduce the original $42 milion ‘annual revenue projection for Year 1 of operations, resulting in changes in service levels: 1) concurrence from the Federal Transit Administration regarcing any deviations from grant contract scopes: 2) associated revisions: to SORTA fare and other system-generated income forecasts; and 3) time to Conduct a revised federaly mandatory Tite VI analysis on the service changes, SORTA would also need to renegotiate ils contract with Transdev If any revenue forecast reductions require reductions in the budget. This isa fixed- cost, fxed-scope, performance-based contract that reflects the operations and maintenance of the streetcar system at the service evel authorized by the City and SORTA inthe grant contracts with FTA. t]PagePlease let us know f you have any questions, ec; Jason Dunn, SORTA Board Chair Hany Black, Cincinnati Gity Manager ‘The Honorable Kevin Flynn “The Honerable Amy Murray Paul Grether, Director Rall Services, SORTA 21 Page