Agenda Item AGENDA STAFF REPORT ASR Control 24-000011
MEETING DATE:	05/07/24
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	5
SUBMITTING Agency/Department:	OC Public Works (Approved)
Department contact person(s):	Edward Frondoso (714) 245-4596
	Lori Hanson (714) 955-0231

Subject: Approve Cooperative Services Agreement with the City of Dana Point

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: See Financial Impact Section

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: See Financial Impact Section	County Audit in last 3 years: No
Levine Act Review Completed: N/A

Prior Board Action: 5/7/2019 #22, 6/17/2014 #62, 6/23/2009 #74, 7/24/2007 #24

RECOMMENDED ACTION(S):

Find that the proposed project is Categorically Exempt from CEQA, Class 1 (Existing Facilities) pursuant to CEQA Guidelines Section 15301.

Approve Cooperative Services Agreement with the City of Dana Point for various municipal services and functions located within the city limits for a period of five years effective July 1, 2024, through June 30, 2029, in an amount not to exceed $1,237,031 per year for a cumulative total not to exceed $6,185,155, with the option to renew for two additional terms of five years each.

Authorize the Director of OC Public Works or designee to execute minor amendments to the agreement and to exercise contingency cost increases in an amount not to exceed 10 percent of the annual Cooperative Services Agreement amount per fiscal year.

SUMMARY:

Approval of a Cooperative Services Agreement with the City of Dana Point will support the continued provision of cooperative municipal services and functions for the City of Dana Point by OC Public Works, with all costs 100 percent recoverable from the City of Dana Point

BACKGROUND INFORMATION:

OC Public Works has provided road maintenance and operations services (Services) to the City of Dana Point (City) since its incorporation in 1989 and, prior to that, as a County of Orange (County) unincorporated area. Services include, but are not limited to, road repair, traffic engineering, traffic striping and stenciling, traffic sign fabrication and maintenance, herbicide/manual weed control, weed abatement, drain cleaning, City right-of-way inspection and administration and dedicated maintenance staff.

Prior Board of Supervisors (Board) actions related to cooperative agreements with the City for Services are summarized in the table below.

Date	Action
7/1/2003	Approved Agreement D02-135
7/24/2007	Approved the extension of Agreement D02-135
6/23/2009	Approved Agreement D09-001
6/17/2014	Approved Agreement D14-003
5/7/2019	Approved Agreement MA-080-19011380

The Board authorized the Director of OC Public Works or designee to exercise a cost increase or decrease in an amount not to exceed 10 percent of the annual amount of each preceding period, in accordance with the terms and conditions of the agreements. All costs associated with the Services are 100 percent recoverable from the City.

The City wishes to continue Services with the County. Cooperative Services Agreement MA-080-24010591 (Agreement) supersedes and replaces Agreement MA-080-19011380 and relevant supplements. The Agreement will support the continued provision of OC Public Works' Services for a five-year term, effective July 1, 2024, through June 30, 2029, at a cost of $1,237,031 per year. The Agreement provides for a reduction in full-time dedicated County staff to an as-needed basis for Services requested by the City, effective July 1, 2025, and provides for the flexibility to annually evaluate the work plan and budget and make mutually agreed upon adjustments as needed. In the event the County provides unplanned work, such as additional work beyond the work plan as requested by the City, the County shall be compensated by the City for the work at the prices, rates and fees set forth in the annual work plan. In the event the County provides unplanned work requested by the City, such as emergency work necessitated by accidents, storms or other natural disaster, the County shall be compensated by the City for the work in an amount agreed upon by the County and City prior to the performance of the emergency work.

OC Public Works recommends the Board approve the Agreement with the City for Services for a term of five years, effective July 1, 2024, through June 30, 2029, in an amount not to exceed $1,237,031 per year for a total amount not to exceed $6,185,155. Additionally, OC Public Works requests the Board authorize the Director of OC Public Works or designee to execute minor amendments to the Agreement and to exercise contingency cost increases in an amount not to exceed 10 percent of the annual amount per fiscal year.

Compliance with CEQA: The proposed project is Categorically Exempt (Class 1) from the provisions of CEQA pursuant to CEQA Guidelines Section 15301, because it involves maintenance of existing public structure and facilities involving negligible or no expansion of existing use.

FINANCIAL IMPACT:

Appropriations and revenue for this Agreement will be included in the FY 2024-25 Budget for Fund 115, OC Road, and will be included in the budgeting process for future years. All costs associated with the Agreement are 100 percent recoverable from the City in the amount not to exceed per fiscal year summarized below.

FY 2024-25	$1,237,031
FY 2025-26	$1,237,031
FY 2026-27	$1,237,031
FY 2027-28	$1,237,031
FY 2028-29	$1,237,031

The City or the County may at any time for any reason, with or without cause, terminate this Agreement, or any portion by serving upon the non-terminating party a written Notice of Termination at least 30 days prior to the date of termination. The terminating party shall not be obligated to explain its reasons for termination. If the terminating party terminates a portion of this Agreement, such termination shall not make void or invalidate the remainder of this Agreement.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Cooperative Services Agreement MA-080-24010591 with the City of Dana Point
Attachment B - Dana Point Work Plan