HomeMy WebLinkAbout12 - Cooperative Agreement with the OCTAQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
November 18, 2025
Agenda Item No. 12
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Assistant City Manager - 949-644-3232,
sjurjis@newportbeachca.gov
PREPARED BY: Seimone Jurjis, Assistant City Manager
TITLE: Cooperative Agreement with the Orange County Transportation
Authority
ABSTRACT:
For the City Council's consideration is a Cooperative Agreement (Agreement) with the
Orange County Transportation Authority (OCTA) to conduct a relocation feasibility study
for the Newport Transportation Center (NTC), evaluating 3848 Campus Drive as the
City of Newport Beach's (City) preferred site. Under the Agreement, OCTA will procure
and manage the study, and the City will reimburse 50% of costs in an amount
not -to -exceed $250,000. The study will assess the current NTC site, 3848 Campus Drive,
and additional candidate locations while preserving the NTC's function as a regional
transit hub served by OC Bus Routes 1, 55, 57 and 79. The scope includes operations
and conceptual planning, environmental review, Title VI equity analysis, and compliance
strategies for Federal Transit Administration (FTA) requirements and The Irvine Company
deed restrictions applicable to the current NTC site.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Authorize the Mayor and City Clerk to enter into a Cooperative Agreement between
the Orange County Transportation Authority and the City of Newport Beach in a form
substantially similar to the agreement attached to the staff report; and
c) Approve Budget Amendment No. 26-042 appropriating $250,000 in increased
expenditures from the General Fund unappropriated fund balance.
DISCUSSION:
On June 26, 2025, the City asked the Orange County Transportation Authority (OCTA) to
evaluate relocating the Newport Transportation Center (NTC) to 3848 Campus Drive in
response to calls for police service at the current site. Since the Supreme Court's 2024
decision in City of Grants Pass v. Johnson, calls for service at the NTC declined from
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Cooperative Agreement with the Orange County Transportation Authority
November 18, 2025
Page 2
3,098 (FY 2023-24) to 2,262 (FY 2024-25), while arrests only decreased from 119 to
105 over the same period.
On August 26, 2025, the City Council authorized entering escrow to purchase 3848
Campus Drive (Property), creating an opportunity to secure a potential relocation site for
the NTC. OCTA subsequently agreed to conduct a feasibility study of the Property and
other potential locations.
The attached Agreement formalizes the OCTA—City partnership to complete a relocation
feasibility study, with 3848 Campus Drive identified as the City's preferred candidate site.
Under the Agreement, OCTA will lead procurement and overall project management, and
the City will reimburse 50% of eligible study costs in an amount not -to -exceed $250,000.
The scope of work will evaluate the existing NTC, 3848 Campus Drive, and additional
candidate sites using common criteria. The analysis will maintain the NTC's role as a
regional transit hub served by OC Bus Routes 1, 55, 57 and 79, and will include a Title VI
equity analysis to ensure no disparate impacts or disproportionate burdens on protected
populations.
Because the existing NTC benefited from federal funding and is encumbered by The
Irvine Company grant and deed provisions, the study and any subsequent actions must
satisfy Federal Transit Administration (FTA) real property and disposition requirements
and address site -specific restrictions. The study also includes compliance related to the
California Surplus Land Act, CEQA/NEPA, and the City's Local Coastal Program. OCTA
has emphasized that no outcome can be predetermined prior to the appropriate
environmental review.
The Agreement also provides for robust public involvement, including targeted rider
outreach and on -site pop-up engagements at key milestones.
FISCAL IMPACT:
Approval of this item will increase General Fund expenditures to cover the City's share of
the feasibility study. The Budget Amendment (Attachment B) requests an appropriation
of $250,000 in increased expenditures from unappropriated General Fund reserves to
fund the feasibility study for Fiscal Year 2025-26. The related expenditures will be
recorded in account no. 01201925-911047.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
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Cooperative Agreement with the Orange County Transportation Authority
November 18, 2025
Page 3
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Cooperative Agreement
Attachment B — Budget Amendment No. 26-042
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ATTACHMENT A
COOPERATIVE AGREEMENT NO. C-X-XXXX
BETWEEN
ORANGE COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF NEWPORT BEACH
FOR
NEWPORT TRANSPORTATION CENTER RELOCATION FEASIBILITY STUDY
THIS COOPERATIVE AGREEMENT (Agreement), is effective this day of
, 20_ ("Effective Date"), by and between the Orange County Transportation
Authority, 550 South Main Street, P.O. Box 14184, Orange California 92863-1584, a public corporation
of the State of California (herein referred to as "AUTHORITY') and the CITY OF NEWPORT BEACH
(hereinafter referred to as "CITY") each individually known as "Party" and collectively known as the
"Parties".
RECITALS:
WHEREAS, the Newport Transportation Center (hereinafter referred to as "NTC") is located at
1550 Avocado Avenue, Newport Beach; and
WHEREAS, the NTC is owned and operated by AUTHORITY and serves as a key regional transit
hub providing connections to destinations throughout Orange County; and
WHEREAS, the existing NTC site was acquired through a conveyance from The Irvine Company
and developed with Federal Transit Administration (hereinafter referred to as "FTA") funding, and is
therefore subject to federal interest and use restrictions applicable to federally funded transit facilities;
and
WHEREAS, on June 10, 2025, the CITY's City Council directed its staff to explore relocating Fire
Station No. 3, located at 868 Santa Barbara Drive, Newport Beach, to the current NTC site; and
WHEREAS, on June 26, 2025, the CITY requested AUTHORITY's assistance in evaluating the
feasibility of relocating the NTC to 3848 Campus Drive, Newport Beach; and
Last Rev: 4/25/2022
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WHEREAS, on August 5, 2025, the AUTHORITY requested information regarding CITY's site
selection criteria and supporting documentation; and
WHEREAS, the Parties have determined that a relocation feasibility study evaluating multiple
sites (hereinafter referred to as "PROJECT") is necessary to address the operational feasibility, ridership
demand, environmental and regulatory compliance, and cost -sharing considerations before advancing
any relocation efforts; and
WHEREAS, the AUTHORITY has agreed to contract directly with a professional services
consultant for PROJECT and CITY has agreed to reimburse AUTHORITY for fifty percent of the costs
associated with the PROJECT; and
WHEREAS, the Parties agree this study is not a decision -making document and the outcome will
require additional analysis in a subsequent phase; and
WHEREAS, this Cooperative Agreement was approved by the AUTHORITY's Board of Directors
on October 27, 2025; and
WHEREAS, this Cooperative Agreement was approved by the CITY's City Council on November
18, 2025; and
WHEREAS, the Parties agree to provide periodic updates on the PROJECT to their respective
governing bodies; and
NOW, THEREFORE, it is mutually understood and agreed by AUTHORITY and CITY as follows:
ARTICLE 1. COMPLETE AGREEMENT
A. This Agreement, including any attachments incorporated herein and made applicable by
reference, constitutes the complete and exclusive statement of the term(s) and conditions(s) of this
Agreement between AUTHORITY and CITY and it supersedes all prior representations, understandings,
and communications. The invalidity in whole or in part of any term or condition of this Agreement shall
not affect the validity of other term(s) or conditions(s) of this Agreement. The above referenced Recitals
are true and correct and are incorporated by reference herein.
B. AUTHORITY's failure to insist on any instance(s) of CITY's performance of any term(s) or
condition(s) of this Agreement shall not be construed as a waiver or relinquishment of AUTHORITY's
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right to such performance or to future performance of such term(s) or condition(s), and CITY's obligation
in respect thereto shall continue in full force and effect. Changes to any portion of this Agreement shall
not be binding upon AUTHORITY except when specifically confirmed in writing by an authorized
representative of AUTHORITY by way of a written amendment to this Agreement and issued in
accordance with the provisions of this Agreement.
C. CITY's failure to insist on any instance(s) of AUTHORITY's performance of any term(s) or
condition(s) of this Agreement shall not be construed as a waiver or relinquishment of CITY's right to such
performance or to future performance of such term(s) or condition(s), and AUTHORITY's obligation in
respect thereto shall continue in full force and effect. Changes to any portion of this Agreement shall not
be binding upon CITY except when specifically confirmed in writing by an authorized representative of
CITY by way of a written amendment to this Agreement and issued in accordance with the provisions of
this Agreement.
ARTICLE 2. SCOPE OF AGREEMENT
This Agreement specifies the roles and responsibilities of the Parties as they pertain to the
subjects and projects addressed herein. Both AUTHORITY and CITY agree that each will cooperate and
coordinate with the other in all activities covered by this Agreement and any other supplemental
agreements that may be required to facilitate purposes thereof. The Parties agree to coordinate regularly
through joint progress meetings and exchange of technical information necessary to ensure alignment of
PROJECT objectives, schedule, and deliverables.
ARTICLE 3. RESPONSIBILITIES OF AUTHORITY
AUTHORITY agrees to the following responsibilities for PROJECT:
A. To serve as the contracting and administrative lead for the procurement of professional
services and all professional agreements related to the PROJECT.
B. To provide overall project management for the PROJECT.
C. To provide technical oversight, guidance, and data related to transit operations, ridership
patterns, mobility trends, equity considerations, and other relevant areas of AUTHORITY's expertise.
D. To ensure the PROJECT is conducted in compliance with applicable FTA regulations
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governing disposition, relocation, and continued use of federally funded assets.
E. To provide technical guidance related to the PROJECT as it pertains to federal interest in the
property and the AUTHORITY's obligations to comply with applicable federal and state regulations.
F. To coordinate with CITY and local, regional, state, and federal stakeholders as appropriate
including, but not limited to, the FTA, California Coastal Commission, The Irvine Company, and others.
G. To fund up to an amount not -to -exceed Two Hundred and Fifty Thousand Dollars ($250,000)
for costs associated with the PROJECT.
ARTICLE 4. RESPONSIBILITIES OF CITY
CITY agrees to the following responsibilities for PROJECT:
A. To designate a representative to serve on the selection committee for the procurement of
professional consultant services.
B. To reimburse AUTHORITY up to an amount not -to -exceed Two Hundred and Fifty Thousand
Dollars ($250,000) for costs associated with the PROJECT.
C. To pay AUTHORITY within 30 business days after receipt of an executed consultant contract
for costs associated with CITY's portion of the PROJECT.
D. To provide AUTHORITY with data and documentation related to CITY's site selection analysis
and fire response trends to provide justification, purpose, and need for the PROJECT and subsequent
consultation with the FTA.
E. To provide applicable land use, zoning, environmental, and development data necessary to
evaluate potential NTC relocation sites.
F. To provide technical guidance related to land use, development plans, and other applicable
areas of CITY's expertise.
G. To assist AUTHORITY, as requested, in providing data or local approvals necessary to
support AUTHORITY's compliance with FTA property disposition and environmental review
requirements.
H. To coordinate with AUTHORITY and local stakeholders as appropriate including, but not
limited to, entities such as the Newport Beach Fire Department, The Irvine Company, and others.
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ARTICLE 5. DELEGATED AUTHORITY
The actions required to be taken by CITY in the implementation of this Agreement are delegated
to its City Manager, or designee, and the actions required to be taken by AUTHORITY in the
implementation of this Agreement are delegated to AUTHORITY's Chief Executive Officer or designee.
ARTICLE 6. MAXIMUM OBLIGATION
Notwithstanding any provisions of this Agreement to the contrary, AUTHORITY and CITY
mutually agree that PROJECT's total maximum cost shall be Five Hundred Thousand Dollars ($500,000)
and that the Parties shall split the cost equally. AUTHORITY's and CITY's respective maximum
cumulative payment obligation hereunder shall be Two Hundred and Fifty Thousand Dollars ($250,000),
unless agreed to and amended by both Parties.
ARTICLE 7. AUDIT AND INSPECTION
AUTHORITY and CITY shall maintain a complete set of records in accordance with generally
accepted accounting principles. Upon reasonable notice, CITY shall permit the authorized
representatives of the AUTHORITY to inspect and audit all work, materials, payroll, books, accounts, and
other data and records of CITY for a period of four (4) years after final payment, or until any on -going
audit is completed. For purposes of audit, the date of completion of this Agreement shall be the date of
CITY's payment of AUTHORITY's final billing (so noted on the invoice) under this Agreement.
AUTHORITY shall have the right to reproduce any such books, records, and accounts. The above
provision with respect to audits shall extend to and/or be included in contracts with CITY's contractor.
ARTICLE 8. INDEMNIFICATION
A. To the fullest extent permitted by law, CITY shall defend (at CITY's sole cost and expense
with legal counsel reasonably acceptable to AUTHORITY), indemnify, protect, and hold harmless
AUTHORITY, its officers, directors, employees, and agents (collectively the "Indemnified Parties"), from
and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration
awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and
attorney fees (collectively "Claims"), including but not limited to Claims arising from injuries to or death of
persons (CITY's employees included), for damage to property, including property owned by AUTHORITY,
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or from any violation of any federal, state, or local law or ordinance, by the negligent acts, omissions or
willful misconduct of CITY, its officers, directors, employees or agents in connection with or arising out of
the performance of this Agreement.
B. To the fullest extent permitted by law, AUTHORITY shall defend (at AUTHORITY's sole cost
and expense with legal counsel reasonably acceptable to CITY), indemnify, protect, and hold harmless
CITY, its officers, directors, employees, and agents (collectively the "Indemnified Parties"), from and
against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration
awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and
attorney fees (collectively "Claims"), including but not limited to Claims arising from injuries to or death of
persons (AUTHORITY's employees included), for damage to property, including property owned by CITY,
or from any violation of any federal, state, or local law or ordinance, by the negligent acts, omissions or
willful misconduct of AUTHORITY, its officers, directors, employees or agents in connection with or arising
out of the performance of this Agreement.
C. The indemnification and defense obligations of this Agreement shall survive its expiration or
termination.
ARTICLE 9. ADDITIONAL PROVISIONS
A. Term of Agreement: This Agreement shall be effective on 20_, and shall be in full
force and effect for 15 months through 20_
B. Termination: In the event either Party defaults in the performance of their obligations under
this Agreement or breaches any of the provisions of this Agreement, the non -defaulting Party shall have
the option to terminate this Agreement upon thirty (30) days' prior written notice to the other Party.
C. Termination for Convenience: Either Party may terminate this Agreement for its convenience
by providing thirty (30) days' prior written notice of its intent to terminate for convenience to the other
Party.
D. AUTHORITY and CITY shall comply with all applicable federal, state, and local laws, statues,
ordinances and regulations of any governmental authority having jurisdiction over the PROJECT.
E. Legal Authority: AUTHORITY and CITY hereto consent that they are authorized to execute
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this Agreement on behalf of said Parties and that, by so executing this Agreement, the Parties hereto are
formally bound to the provisions of this Agreement.
F. Severability: If any term, provision, covenant or condition of this Agreement is held to be
invalid, void or otherwise unenforceable, to any extent, by any court of competent jurisdiction, the
remainder of this Agreement shall not be affected thereby, and each term, provision, covenant or
condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
G. Counterparts of Agreement: This Agreement may be executed and delivered in any number
of counterparts, each of which, when executed and delivered shall be deemed an original and all of which
together shall constitute the same agreement. Facsimile signatures will be permitted.
H. Force Maieure: Either Party shall be excused from performing its obligations under this
Agreement during the time and to the extent that it is prevented from performing by an unforeseeable
cause beyond its control, including but not limited to; any incidence of fire, flood; acts of God;
commandeering of material, products, plants or facilities by the federal, state or local government; national
fuel shortage; or a material act or omission by the other Party; when satisfactory evidence of such cause
is presented to the other Party, and provided further that such nonperformance is unforeseeable, beyond
the control and is not due to the fault or negligence of the Party not performing.
I. Assignment: Neither this Agreement, nor any of the Parties' rights, obligations, duties, or
authority hereunder may be assigned in whole or in part by either Party without the prior written consent
of the other Party in its sole and absolute discretion. Any such attempt of assignment shall be deemed
void and of no force and effect. Consent to one
assignment shall not be deemed consent to any subsequent assignment, nor the waiver of any right to
consent to such subsequent assignment.
J. Governing Law: The laws of the State of California and applicable local and federal laws,
regulations and guidelines shall govern this Agreement.
K. Litigation fees: Should litigation arise out of this Agreement for the performance thereof, the
court shall award costs and expenses, including attorney's fees, to the prevailing party.
L. Notices: Any notices, requests, or demands made between the Parties pursuant to this
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Agreement are to be directed as follows:
To CITY
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Attention: Seimone Jurjis
Title: Assistant City Manager
Phone: 949-644-3001
Email: sjurjis@newportbeachca.gov
To AUTHORITY:
Orange County Transportation Authority
550 South Main Street
P. O. Box 14184
Orange, CA 92863-1584
Attention: CA's name
Title:
Phone: (714) 560-XXXX
Email: X)OOC@octa.net
M. Federal Terms and Conditions: This Agreement is funded in whole, or in part, with federal
funds. XXXXX shall comply with all applicable requirements, terms, and conditions required by federal
law, regulation, directive, or policy, including, but not limited to, those required by the United States
Department of Transportation; the Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, Title 2 of the Code of Federal Regulations Part 200; and the Required
Federal Clauses set forth in Exhibit _, which is attached hereto and made part of this Agreement. CITY
shall ensure compliance with these requirements by all subcontractors at any tier.
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement No. C-X-XXXX to be
executed as of the date of the last signature below.
CITY OF NEWPORT BEACH ORANGE COUNTY TRANSPORTATION AUTHORITY
Joe Stapleton
Mayor
ATTEST:
Lena Shumway
City Clerk
APPROVED AS TO FORM
AA
Darrell E. Johnson
Chief Executive Officer
APPROVED AS TO FORM:
James M. Donich
General Counsel
APPROVAL RECOMMENDED:
By: / By:
Aaron C. Harp
City Attorney
Rose Casey
Executive Director, Planning
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ATTACHMENT B
@� City of Newport Beach
u , i BUDGET AMENDMENT
Cq<1F0RN�r 2025-26
Department: Community Development
Requestor: Seimone Jurjis
❑ CITY MANAGER'S APPROVAL ONLY
ONETIME: ❑ Yes ❑ No
Clerk:
❑ COUNCIL APPROVAL REQUIRED lFinance Director:
Budget Manager:
increase expenditure appropriations to fund a cooperative agreement with OCTA for a feasibility study.
BA#: 26-042
Date
Date //I i%l ?,-5
Date (1 141 VJ
❑ from existing budget appropriations
❑ from additional estimated revenues
❑� from unappropriated fund balance
REVENUES
Fund #
Org
Object Project
Description
Increase or (Decrease) $
012
01299
691010
INTERFUNDTRANSFERS- TRANSFER IN GENERAL FUND
250,000.00
Subtotal
$ 250,000.00
EXPENDITURES
Fund #
Org
Object Project
Description
Increase or (Decrease) $
010
01099
991012
GENERAL FUND INTERFUND TRANSFR -TRANSFER OUT CIP FUND
250,000.00
012
01201925
911047 26F12
FACILITIES - CAPITAL PROJECT
250,000.00
Subtotal
$ 500,000.00
FUND BALANCE
Fund #
Object
Description
Increase or (Decrease) $
010
300000
GENERAL FUND - FUND BALANCE CONTROL
(250,000.00)
012
300000
GENERAL FUND CAPITAL PROJECTS - FUND BALANCE CONTROL
Subtotal
$ (250,000.00)
Fund Balance Change Required
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