TO:
VIA:
FROM:
DATE:
Placentia Cit Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR/PUBLIC SERVICES AND INFRASTRUCTURE JUNE 7, 2022
SUBJECT: AMENDMENT NO. 2 TO COOPERATIVE AGREEMENT WITH THE ORANGE
COUNTY TRANSPORTATION AUTHORITY FOR THE DESIGN AND
CONSTRUCTION OF A PLACENTIA METROLINK COMMUTER RAIL
STATION AND PARKING STRUCTURE
FISCAL
IMPACT: There is no fiscal impact associated with the recommended actions.
SUMMARY:
The City entered into a Cooperative Agreement (CA) with the Orange County Transportation Authority (OCTA) in 2016 for the construction of a Metrolink commuter rail station and parking structure in Old Town (collectively, the "Project"). An amendment to the CA is proposed to extend the term of the agreement, address future cost increases, as well as update several provisions of the agreement relative to when the City's cost share is due to the OCTA. Although the City has fulfilled its obligations associated with the original CA, which includes preparing shelf -ready construction plans for the planned Project and under grounding utilities, ongoing negotiations between BNSF and Metrolink over a new Master Shared Use Agreement (MSUA) have been stalled, thus delaying the ability to advance the Project to construction. The proposed Amendment No. 2 to the agreement will extend the term of the CA an additional five years, require the City to reimburse OCTA for its cost share as progress payments are made to the selected contractor as opposed to paying OCTA for the City's entire share prior to awarding a construction contract, and pay for any increased Project costs associated with design and construction based upon the delay in successfully negotiating a Master Shared Use Agreement between OCTA, Metrolink and BNSF.
RECOMMENDATION:
It is recommended that City Council take the following actions:
1. Approve Amendment No. 2 to Cooperative Agreement No. C-6-1117 with the Orange County Transportation Authority for the design and construction of a Metrolink commuter rail station and parking structure; and
2. Authorize the City Administrator to execute the above-mentioned Agreement Amendment, in a form approved by the City Attorney.
1.e.
June 7, 2022
City Council Agenda
June 7, 2022
DISCUSSION:
On August 1, 2016, the City and the Orange County Transportation Authority (OCTA) entered into a cooperative agreement (CA) for the design and construction of a Metrolink commuter rail station and parking structure to be constructed on City -owned property in Old Town Placentia (collectively, the "Project"). The terms of the CA outline the responsibilities of both parties and how the Project will be funded and constructed. Over the ensuing six years the City has worked diligently to prepare the engineered construction plans and bid documents for the station and parking structure as well as completed utility relocation work in advance of the station and parking structure improvements. Advancing the Project to the construction phase however has been extensively delayed as a result of stalled negotiations over an updated Master Shared Use Agreement (MSUA) between BNSF who owns the rail corridor where the station will be constructed and the regional rail partners within the Southern California Regional Rail Authority (Metrolink and OCTA) who operates commuter trains that operate on BNSF property. As a result of the extended delays the City and OCTA executed Amendment No. 1 to this agreement on July 1, 2020, to extend the term through May 31, 2022, or final acceptance of the project, whichever is later, or until terminated by either party.
At this juncture, the parties involved in the ongoing negotiations of the MSUA have yet to come to terms and the term of the CA requires an additional extension. In addition, Staff worked with OCTA Staff on some additional edits to the original terms of the agreement. These changes include altering the City's payment schedule for its $4.4 million contribution towards the cost of this Project. Previously, the City's payment to OCTA for its cost share was due prior to OCTA awarding a construction contract which is unusual for public works projects. The proposed agreement amendment alters that language so that OCTA will invoice the City for its proportional cost share as progress payments are made to the eventual construction contractor hired for the Project. Additionally, the agreement outlines that OCTA will pay for all increased design and construction costs as a result of the delay in successfully negotiating the MSUA. Finally, the proposed amendment extends the term of the agreement through May 31, 2027, or final acceptance of the Project, whichever is later.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended actions.
Prepared by.
Luis Estevez
Reviewed and approved:
Damien R. Arrula
Deputy City Administrator City Administrator
Attachment:
Amendment No. 2 to Cooperative Agreement No. C-6-1117