Title
Recommendation to Authorize the City Manager to Execute an Agreement with Terraphase Engineering, Inc. for Marsh Crust Reconnaissance Sampling and Environmental Support Services for Alameda Point’s Adaptive Reuse Areas Backbone Infrastructure for a Not-to-Exceed Amount of $445,187.
On February 4, 2014, the City certified the Alameda Point Final Environmental Impact Report (AP EIR) in compliance with the California Environmental Quality Act (CEQA). The action outlined in this staff report is consistent with the AP EIR and there have been no substantial changes in the overall Alameda Point project or project circumstances identified in the AP EIR, and no new information of substantial importance, that necessitates further environmental study pursuant to CEQA.(Public Works 31041520)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Alameda Point is a federal Superfund site due to contamination in the soil and groundwater associated with the United States Navy’s (Navy) past use of the property. The City of Alameda (City) is in the design phase of a second project bringing backbone infrastructure to Alameda Point’s Adaptive Reuse Area. This work is guided by the Alameda Point Master Infrastructure Plan (MIP) with phasing defined in the 2017 Ten-Year Water Infrastructure Agreement between East Bay Municipal Utilities District (EBMUD) and the City. Exhibit 1 is the Phasing Plan from the EBMUD Agreement.
The City’s first construction project installed new EBMUD facilities on West Tower and West Midway from Main Street to Pan Am Way, all backbone infrastructure in Phase 1 and new EBMUD facilities in Phase 2. Construction for this work is expected to be complete in the summer of 2024. On March 21, 2023, City Council awarded a contract for civil engineering services for the remaining backbone infrastructure in Phase 2 and all backbone improvements in Phase 3. Forthcoming building sales in the Adaptive Reuse Area will fund additional construction of backbone infrastructure in the Adaptive Resue Area.
The proposed Terraphase Engineering, Inc. (Terraphase) agreement, included as Exhibit 2, is for environmental support services during design and construction of the next project, including Marsh Crust reconnaissance sampling in Phase 3. Following a competitive solicitation lead by the Base Reuse and Economic Development Department in 2017, Terraphase was selected and has served as the City’s strategic advisor and primary point-of-contact for all hazardous material issues related to Alameda Point. Terraphase performed the environmental support services for the first construction project. Their site-specific expertise makes them uniquely qualified to continue providing these services. Staff recommends City Council award the proposed agreement to Terraphase for an amount not-to-exceed $445,187 for Marsh Crust reconnaissance sampling and environmental support services to bring backbone infrastructure to Alameda Point’s Adaptive Reuse Area.
BACKGROUND
Alameda Point is a federal Superfund site due to contamination in the soil and groundwater associated with the Navy’s past use of the property. It is comprised of 300 petroleum sites and 34 Federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) installation restoration sites, many of which have been remediated and closed. The Navy is responsible for the clean-up of contamination associated with its former activities and has been actively investigating and remediating the property for the last 20+ years. Land transferred to the City has various land use restrictions and redevelopment must comply with a Site Management Plan approved by the Base Realignment and Closure Cleanup Team (BCT). The BCT consists of the Navy, the Regional Water Quality Control Board (RWQCB), the Department of Toxic Substances Control (DTSC) and the US Environmental Protection Agency (USEPA).
On February 4, 2014, upon acquisition of major portions of Alameda Point from the Navy, City Council approved the necessary planning documents for redevelopment of Alameda Point, including the MIP for Alameda Point. The MIP, amended in 2020, provides the master plan for the phased replacement of all the Navy’s outdated and substandard utility infrastructure, including water, sewer, storm drain, electrical, gas, telecommunications, and surface street improvements. Until that replacement takes place, the City is responsible for the ongoing operation and maintenance of the outdated utilities at Alameda Point.
Pursuant to the MIP, new infrastructure will be implemented in the Reuse Area to address the specific infrastructure requirements needed to preserve the Historic District. The buildings within the Reuse Area are being sold incrementally to private property owners on a parcel-by-parcel basis. Upon receipt of funds from the sale of the properties, the City’s Capital Improvement Program is overseeing the logical implementation of the new infrastructure in the Reuse Area.
Per EBMUD Regulations Governing Water Service to Customers (Regulations), private property owners within their potable water service area must be an EBMUD customer with direct access to EBMUD water infrastructure. On June 6, 2017, the City Council approved, and on June 14, 2017, EBMUD signed, the EBMUD Agreement that allows the City to sell parcels in the Reuse Area to private property owners inconsistent with the Regulations, assuming the City remains in compliance with the terms of the EBMUD Agreement. The Agreement requires the City to build out the water system replacements in the Reuse Area in phases. Exhibit 1 includes the Phasing Plan.
The City’s first construction project installed new EBMUD facilities on West Tower and West Midway from Main Street to Pan Am Way, all backbone infrastructure in Phase 1 and new EBMUD facilities in Phase 2. Construction for this work is expected to be complete in the summer of 2024. On March 21, 2023, City Council awarded a contract for civil engineering services for the remaining utilities in Phase 2 and all utilities and new roadways in Phase 3. Forthcoming building sales in the Adaptive Reuse Area will fund additional construction of backbone infrastructure in the Adaptive Resue Area.
DISCUSSION
The Base Reuse and Economic Development Department issued a Request for Proposals (RFP) for Environment/Hazardous Materials Consulting Services for Alameda Point on March 27, 2017. Terraphase was selected from a list of consultants and on July 7, 2018, City Council awarded a contract for the services. Terraphase is a California-Certified Small Business and a Federal Small Business with expertise in remedial investigations, soil and groundwater remediation, environmental due diligence, and regulatory compliance. Terraphase has since served as strategic advisor, project manager and primary point-of-contact for all hazardous materials issues related to Alameda Point.
On May 15, 2019, Public Works entered into an agreement with Terraphase to prepare environmental submittals required by EBMUD as part of the water main extension application process. Subsequently, on July 21, 2020, City Council awarded an amendment to the Terraphase agreement for Marsh Crust reconnaissance sampling in Phases 1 and 2 and environmental support services during construction of the first project.
Now that construction of the first project is nearing completion, design of the remaining utilities and new roadways in Phase 2 and all backbone improvements in Phase 3 is now underway. The proposed Terraphase agreement (Exhibit 2) is for environmental support services for design and construction of the next construction project, including Marsh Crust reconnaissance sampling in Phase 3. Terraphase’s past performance and site-specific expertise makes them uniquely qualified to continue providing these services. Staff recommends City Council award the proposed agreement to Terraphase for a not-to-exceed $445,187 for Marsh Crust reconnaissance sampling and environmental support services to bring backbone infrastructure to Alameda Point’s Adaptive Reuse Area.
ALTERNATIVES
• Approve the contract as proposed.
• Approve the contract with a revised scope and/or budget.
• Do not approve the contract with Terraphase and give staff alternative direction.
FINANCIAL IMPACT
Capital Improvement Project C75000 was established in 2017 with funding from building sale proceeds in the Reuse Area. $33.3 million has been allocated to date, which is the total revenue received from building sales and $5,790,913 of fund balance from Alameda Point/Base Reuse Fund (Fund 290) as an advance on the upcoming sale of Building 92.
Expenditures to date are all costs to construct the first project (design, environmental, permitting, geotechnical, construction, etc) and design services for the remaining utilities in Phase 2 and backbone infrastructure in Phase 3. Project funding is available for the proposed Terraphase contract.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
This action will facilitate clean-up and conveyance of land to be redeveloped consistent with the General Plan. The project is consistent with the Transportation Element of the City's General Plan, which states: “It is important that with the upcoming build-out of Alameda Point and other large-scale projects, the City work to reduce the impact of automobile trips on the quality of life for residents and on the easy, safe use of non-automotive transportation modes.”
This action is in direct support of the City’s Strategic Plan project TIE20, which is the continuation of infrastructure improvements at Alameda Point including the design of Alameda Point Adaptive Reuse Area Phase 2 and 3.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
On February 4, 2014, the City certified the AP EIR in compliance with CEQA. The AP EIR evaluates the environmental impacts of redevelopment and reuse of the lands at Alameda Point, consistent with the Alameda Point Zoning Ordinance and MIP, and including the Reuse Area. The action outlined in this staff report is consistent with the AP EIR and there have been no substantial changes in the overall Alameda Point project or project circumstances identified in the AP EIR, and there is no new information of substantial importance regarding significant new or more severe environmental effects or feasible or considerably different mitigation measures, that would otherwise require preparation of a subsequent EIR pursuant to CEQA Guidelines section 15162, a supplemental EIR pursuant to CEQA Guidelines section 15163, or addendum to the EIR pursuant to CEQA Guidelines section 15164.
CLIMATE IMPACTS
The new backbone streets in Alameda Point’s Adaptive Reuse Area will capture and treat 100% of roadway stormwater runoff. In addition, the streets will be complete streets, serving vehicles, pedestrians, and bicyclists. Active modes of transportation emit less greenhouse gas emissions than gasoline vehicles.
RECOMMENDATION
Authorize the City Manager to execute an agreement with Terraphase Engineering, Inc. for Marsh Crust Reconnaissance Sampling and Environmental Support Services for Alameda Point’s Adaptive Reuse Areas Backbone Infrastructure for a not-to-exceed amount of $445,187.
Respectfully submitted,
Erin Smith, Public Works Director
Financial Impact section reviewed,
Margaret L. O'Brien, Finance Director
Exhibits:
1. Phasing Plan
2. Agreement