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  Agenda Item   27.    
City Council Meeting
Meeting Date: 08/20/2019  
FROM: Bill Gallardo

Subject:
Approve CO-OP Agreement with the City of Orange for Senate Bill 743 Implementation Study
RECOMMENDATION
Authorize the City Manager to execute the Cooperative Agreement with the City of Orange 
BACKGROUND/DISCUSSION
In 2013, Senate Bill 743 (SB 743) was signed by the Governor which changed how transportation impacts are identified under the California Environmental Quality Act (CEQA). The legislative intent of SB 743 includes balancing the needs of congestion management with reducing greenhouse gasses and promoting active transportation. Subsequently, the Governor’s Office of Planning and Research was directed to evaluate the effectiveness of various metrics for accomplishing SB 743’s goals. Earlier this year, the SB 743 rule-making process culminated with the state modifying the CEQA guidelines. 
 
The new CEQA guidelines require that by July 1, 2020, transportation impacts be measured using Vehicle Miles Traveled (VMT), a measure of accessibility, rather than Level of Service (LOS), a measure of congestion. While SB 743 requires VMT analysis be part of a project’s environmental review moving forward, cities may still continue to implement their General Plan goals for congestion management, as long as they also comply with the revised CEQA guidelines. This would include the City retaining its ability to condition developers to fund or construct capacity-enhancing improvements. 
 
While the new CEQA guidelines provide direction for SB 743 compliance, local agencies must still develop specific implementation methodologies that are legally defensible and consistent with local development goals. To develop these complex methodologies, it requires specialized engineering, environmental, and legal expertise to assist with SB 743 implementation. 
 
Recently, the City of Orange approached the City of Brea and other North Orange County cities to see if there was interest in participating on an area-wide SB 743 implementation project.  In order to complete this project by the July 1, 2020 deadline, the goal was finalize the list of participating cites and select one consulting firm to prepare the SB 743 implementation project.  As a result, the following seven North Orange County cities have agreed to particiapte:
 
  1. Orange
  2. Brea
  3. Buena Park
  4. Fullerton
  5. La Habra
  6. Placentia
  7. Yorba Linda
 
The City of Orange has agreed to be the lead agency in this effort, which includes procuring and administering the Master Consultant Contract. The City of Orange released the Request For Proposal (RFP) and received four responses. All firms that submitted proposals demonstrated varying degrees of experience with SB 743 projects. 
 
A five-member selection committee was assembled, comprised of three City of Orange staff members and two representatives from the participating cities. Each committee member individually evaluated the consultants’ proposals based the following criteria:
 
  • Project understanding
  • Experience
  • Personnel
  • Proposal clarity
  • Approach
  • Technical ability
  • Cost
 
The committee determined that Fehr & Peers had significantly more experience in SB 743 implementation projects than the other three firms.  Fehr & Peers’ proposal also provided resumes of highly qualified staff with expertise in the subject matter that would work on the project.  As a result, Fehr & Peers’ was selected as the most qualified consultant to perform the work as outlined in the attached proposal.

While the City of Orange would enter into and administer the master agreement with Fehr & Peers, the City of Brea and the other five agencies would reimburse the City of Orange for their fair shares of the project costs in accordance with a mutually agreed formula (50 percent evenly divided and 50 percent population based). Of the $149,395 contract value, Brea’s fair share is $16,261.77.  To put our fair share in perspective, the estimated cost of completing the same work independently is over $60,000. With the economies of scale, the City of Brea realized savings of over $30,000.
 
Under the terms of a Cooperative Agreement, the City of Brea and the other cities will reimburse the City of Orange through monthly invoices. Each of the other cities has agreed to sign the Cooperative Agreement. Staff recommends approving the proposed Cooperative Agreement.
FISCAL IMPACT/SUMMARY
The City of Brea's fair share contribution is $16,261.77 for the commitment of the Cooperative Agreement with the City of Orange. There are sufficient funds available in the department budget to cover the cost. Under the terms of a Cooperative Agreement, the City of Brea will reimburse the City of Orange through monthly invoices.

With SB 743 in place and with a mandated date of July 1, 2020 to have new CEQA guidelines adopted by each local agency, surrounding Cities have formed a coalition to have a joint study completed. The coalition reduces each agency's cost to for the SB 743 study implementation. Through the economies of scale, the City of Brea has realized significant savings and can meet the mandated date for the new guidelines to be in place. Staff recommends approving the proposed Cooperative Agreement.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by: Michael Ho, P.E., Dep. Dir. PW/City Engineer
Concurrence: Tony Olmos, P.E., Director of Public Works
Attachments
COOP

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