AGREEMENT OF SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY, OMNITRANS AND SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY FOR OPERATIONS, MAINTENANCE OF EQUIPMENT, MAINTENANCE OF WAY AND DISPATCHING FOR THE REDLANDS PASSENGER RAIL SERVICE, aka ARROW 17-1001641 Contents AGREEMENT .......................................................................................................................... 1 AGREEMENT ................................................................................................................. 5 2. Definitions ................................................................................................................. 7 3. Services Provided ................................................................................................... 14 3.1 Construction of Contract ................................................................................................... 14 3.2 General Management ....................................................................................................... 14 3.3 Regulatory Responsibilities of Omnitrans .......................................................................... 17 3.4 Regulatory Responsibilities of SCRRA ............................................................................... 21 3.5 Regulatory Responsibilities of SBCTA ............................................................................... 25 3.6. Rail Operations ................................................................................................................. 25 3.7 Maintenance of Equipment (MOE) ................................................................................... 28 3.8 IEMF and Station Maintenance and Security ..................................................................... 29 3.9 Materials Management ...................................................................................................... 31 3.10 Tickets and Fares............................................................................................................. 32 3.11 Public Information Responsibilities .................................................................................. 32 3.12 Coordination with Omnitrans Bus Services ..................................................................... 33 3.13 Clearing of Wrecks ........................................................................................................... 33 3.14 Dispatching ...................................................................................................................... 33 1 3.15 Maintenance of Way ....................................................................................................... 34 3.16 Intentionally Omitted ......................................................................................................... 36 3.17 Standard of Performance; Cooperation Between Omnitrans and SCRRA ..................... 36 3.18 Relationship to Other Contractors ................................................................................... 38 3.19 Hiring of Personnel to Provide the Services .................................................................... 40 3.20 Contractors ........................................................................................................................ 42 3.21 Reports .............................................................................................................................. 43 3.22 Drug and Alcohol Testing ................................................................................................ 44 3.23 Relationship with Other Carriers ....................................................................................... 45 3.24 Accounting Standards ...................................................................................................... 45 3.25 Response to Request for Assurances ............................................................................. 45 4. Costs, Budgeting and Compensation-SCRRA to provide new language for Section 4. ................................................................................................................................... 46 4.1 Costs ................................................................................................................................ 46 4.2 Annual Budget Process – Omnitrans ............................................................................ 49 4.3 Annual Budget Process – SCRRA ............................................................................... 53 4.4 Expedited Dispute Resolution for Budget Matters ........................................................ 56 4.5 Payment ............................................................................................................................. 56 4.6 Annual Comparison of Actual Costs and Revenues to Budget ..................................... 57 5 General Conditions Under Review by Legal of all Parties ....................................... 57 5.1 Term; Period of Performance .......................................................................................... 57 5.2 Access to Equipment and Property................................................................................ 58 5.3 Changes in RPRTs Provided .......................................................................................... 59 5.4 SBCTA’s Right to Information ......................................................................................... 59 5.5 Rights in Property ............................................................................................................ 59 5.6 Other Contracting Rights ................................................................................................ 61 5.7 Rights in Technical Data ................................................................................................. 61 2 5.8 Advertising ........................................................................................................................... 62 5.9 Labor Protection ................................................................................................................. 62 5.10 [RESERVED] ................................................................................................................... 63 5.11 Limitations on Covenants Not to Compete ..................................................................... 63 5.12 Access to Service Property by Third Parties ............................................................... 64 5.13 Inspection and Audit ........................................................................................................ 65 5.14 Emergencies; Force Majeure ............................................................................................ 67 5.15 Indemnity and Liability ..................................................................................................... 68 5.16 Insurance .......................................................................................................................... 68 5.17 Claims Handling and Defense ....................................................................................... 81 5.18 Dispute Resolution ......................................................................................................... 81 5.19 Termination ...................................................................................................................... 83 5.20 Use of SBCTA, Arrow or RPRP Logos ........................................................................... 87 5.21 Use of SBCTA Name ...................................................................................................... 88 5.22 Governing Law ................................................................................................................ 88 5.23 Compliance with Rules and Regulations ........................................................................ 88 5.24 Compliance with Lobbying Policies / Ethics.................................................................... 90 5.25 Public Records Act .......................................................................................................... 90 5.26 Prohibited Interests ......................................................................................................... 91 5.27 Whistleblower Requirements .......................................................................................... 92 5.28 Severability ...................................................................................................................... 92 5.29 Waiver .............................................................................................................................. 92 5.30 Entire Contract ................................................................................................................. 93 5.31 Notices, Contact Information and Delegation of Authority ............................................. 93 5.32 Transition Process ........................................................................................................... 94 5.33 Assignment ...................................................................................................................... 98 Exhibit 1 Redlands Passenger Rail Service Area (RPRSA) ................................................ 100 3 Exhibit 2 Service Property ...................................................................................................... 102 Exhibit 3 Equipment Lease