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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />CLERK OF COUNCIL USE ONLY: <br />MAY 7, 2012 <br />TITLE APPROVED <br />AMENDMENT TO AGREEMENTS WITH ? As Recommended <br />OCTA FOR STEP 2 AND STEP 3 WORK ? As Amended <br />l't <br />FOR SANTA ANA-GARDEN GROVE El Ordinance on Reading <br />171 Ordinance on 2 n "d Reading <br />FIXED GUIDEWAY PROJECT (PROJECT ? Implementing Resolution <br />126766) NON-GENERAL FUND ? Set Public Hearing For_ <br />CITY MANAGER <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Authorize the City Manager and Clerk of the Council to execute an amendment to the <br />cooperative agreements with the Orange County Transportation Authority (OCTA), to reallocate <br />$488,000 in funding from Step 3 Preliminary Engineering to Step 2 Environmental Analysis for <br />the Santa Ana-Garden Grove Fixed Guideway Project (Project), subject to nonsubstantive <br />changes approved by the City Manager and City Attorney. <br />BACKGROUND <br />The Cities of Santa Ana and Garden Grove are working collaboratively with OCTA on the Santa <br />Ana-Garden Grove Fixed Guideway project. Santa Ana and OCTA have entered into two <br />cooperative agreements for development of the Project to define their respective roles and <br />responsibilities. A Step 2 agreement for Environmental Analysis was executed in 2008 for an <br />amount of $5.9 million and a Step 3 agreement for Project Development (Preliminary <br />Engineering) was executed in 2011 for an amount not to exceed $5,541,700, contingent on the <br />project being accepted into FTA's Section 5309 New Starts/Small Starts Program. <br />In early 2010, with the prolonged economic downturn affecting potential local funding sources, <br />OCTA directed the City of Santa Ana to prepare the project for Federal Transit Administration <br />(FTA) Section 5309 New Starts/Small Starts grant funding because the project was considered <br />to be a strong candidate under this program. FTA became actively involved in discussions with <br />OCTA and the cities of Santa Ana and Garden Grove soon thereafter, and project deliverables <br />were revised and refined to satisfy the specific requirements of FTA and submitted to FTA for <br />approval. <br />DISCUSSION <br />In late March, Cordoba Corporation, the City's consultant for Step 2, contacted the City <br />requesting additional funds to complete Step 2. The consultant stated that the process was <br />significantly altered with the decision to prepare the Project to compete for FTA New <br />Starts/Small Starts funding. The involvement of an additional reviewing/approving agency <br />25E-1