July 28, 2026
Agenda Item No. 8
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, City Manager - 949-644-3001, [email protected] PREPARED BY:
Benjamin M. Zdeba, Deputy City Manager - 949-644-3253, [email protected] TITLE:
Accepting the Newport Transportation Center Relocation Term Sheet Related to the Executed Cooperative Agreement with the Orange County Transportation Authority ABSTRACT:
On November 18, 2025, the City Council authorized the Mayor and City Clerk to enter into a Cooperative Agreement (Agreement) between the Orange County Transportation Authority (OCTA) and the City of Newport Beach (City) to conduct a relocation feasibility study for the Newport Transportation Center (NTC), evaluating 3848 Campus Drive as the City’s preferred site. This Agreement became effective on December 15, 2025. In furtherance of this Agreement, City staff worked with OCTA staff to prepare an NTC Relocation Term Sheet (Term Sheet), establishing a shared framework of roles, responsibilities and phased milestones. This non-binding Term Sheet sets forth the terms upon which the relocation could take place and is going to the OCTA Board of Directors (Board) for review and acceptance at its meeting on July 27, 2026.
Assuming the Board accepts the Term Sheet, it is concurrently being presented to the City Council for consideration and acceptance.
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; and b) Authorize the City Manager to execute a term sheet between the Orange County Transportation Authority and the City of Newport Beach establishing a framework for continued coordination on the potential relocation of the Newport Transportation Center.
DISCUSSION:
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.
On November 18, 2025, the City Council authorized the Mayor and City Clerk to enter into a Cooperative Agreement between OCTA and the City to complete a relocation feasibility study, with 3848 Campus Drive identified as the City's preferred candidate site. The Agreement became effective on December 15, 2025, and is included as Attachment A.
In furtherance of the Agreement, City staff and OCTA staff negotiated the Term Sheet to guide the potential relocation of the existing NTC to an alternate sites outside the City boarders. The Term Sheet establishes a shared framework of roles, responsibilities, and phased milestones targeting project completion by December 31, 2031, subject to environmental review, funding availability, regulatory approvals, and governing body approvals by both parties. The Term Sheet is expressly non-binding and does not obligate either party to proceed with any project phase absent subsequent written agreements approved by their respective governing bodies.
This Term Sheet will be provided to the OCTA Board of Directors for review and acceptance at its meeting on July 27, 2026, and is presented for the City Council’s review and acceptance as Attachment B.
FISCAL IMPACT:
There is no fiscal impact related to this item. The cost of studying additional sites will be covered by OCTA.
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.
ATTACHMENTS:
Attachment A – Cooperative Agreement
Attachment B – Term Sheet
Accepting the Newport Transportation Center Relocation Term Sheet Related to the Executed Cooperative Agreement with the Orange County Transportation Authority July 28, 2026
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