The Intermodal Facility will soon begin construction near Campustown.

The City Council approved the Operations Agreement with Iowa State on Tuesday, as well as the final plans for the project and awarded the construction contract to The Weitz Company of Des Moines.

The Operations Agreement defines the responsibilities of the university and the city in the daily operations, management and finance of the facility.

“Usually when we have an agreement, it is in the name of the city,” said Steve Schainker, city manager.

However, Schainker said this agreement is unusual because Iowa State will be handling the daily responsibilities of maintaining and operating the site.

This includes collecting and accounting for parking fees, removal of snow and trash and the general maintenance and necessary repairs of the facility.

But the revenues and expenditures will be managed in a separate university fund. If the revenues do not cover the expenditures, the university and the city will each provide subsidies.

Every year by Jan. 1, the university will present a recommended operational budget to Schainker, who will have the option of approving it or suggesting revisions. The final operational budget will then be presented by Feb. 28, according to the agreement.

“It’s going to be a challenge the first couple years,” Schainker said. “But it’s going to be a fantastic facility. It’s going to take this type of [agreement] to make this work.”

The Intermodal Facility will be constructed on Hayward Avenue and will include space for transit buses, intercity buses and bicycles.

Construction could begin by April. The facility is set to be operational by June 2012.