Title
Adoption of Resolution Authorizing the Interim City Manager, or Designee, to Execute and Record, By and Between the City of Alameda and East Bay Municipal Utility District, an Amended and Restated Partial Assignment of Non-Exclusive Easement and Grant of Non-Exclusive Easement over Department of the Navy-owned Lands; Grant of Easement over City of Alameda-owned Lands; and Any and All Ancillary Documents for the Extension of Water Service in Main Street and West Redline Avenue to Property Conveyed to the Department of Veterans Affairs at the Former Naval Air Station at Alameda Point (Community Development 29061822)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
New development in the Northwest Territory Planning Area at Alameda Point requires the construction and installation of new utilities and connections. The Department of Veterans Affairs (“VA”) project (“VA Project) is one of three developments planned for the Northwest Territory Planning Area. The second project, to be developed by the City of Alameda (“City”), pending funding, is the Alameda Point Sports Complex, and third, bay trail and open space improvements by the East Bay Regional Parks District (“EBRPD”).
Because the VA development will start construction first, the VA intends to construct off-site underground utility connections and lines required to serve the VA Project. These improvements take into account City and EBRPD anticipated utility usages/capacity in the VA Project off-site design requirements. In order for EBMUD to finalize their design for incorporation into the VA Project’s off-site facilities package, EBMUD requires new off-site easements to be recorded. These new easements would extend from existing City right-of-way in and along Main Street, with connections through to and along W. Redline Avenue, which has split land ownerships between the City and Department of the Navy (“Navy”), up to the “VA Property.” The proposed alignment of the EBMUD easements are highlighted illustratively in Exhibit 1 to this staff report.
Staff is recommending that the City Council adopt the resolution to authorize the Interim City Manager, or designee, to execute and record the partial assignment and easement documents in Exhibit 2 & 3; and any and all ancillary documents.
BACKGROUND
While the City and VA are both successors in interest to certain lands through the transfer and acceptance of former military real property pursuant to the Base Realignment and Closure (“BRAC”) law, the United States of America, acting by and through the Department of the Navy (“Navy”) has retained certain lands and utility easements collectively also referred to as “Retained Government Property”.
In June 2000, as part of the Economic Development Conveyance Agreement, as amended, (“EDC Agreement”), pursuant to Section 2905(b)(4) of the BRAC of 1990, as amended, the City and the Navy reached an agreement in principal that the City would forgo 74 acres of the Northwest Territories (“Flex Parcel”) to support the Navy transfer of the Flex Parcel to VA so that the VA’s Project could be a sufficient distance away from the California Least Tern (LTC) colony which is situated on the adjoining 549 acres also slated to be transferred to the VA for conservation.
In 2013, the City and VA entered into a Formal Term Sheet addressing the use and installation of trails, roads and installation of utilities on and off VA Property with respect to the proposed VA Project, City Sports Complex, and EBRPD bay trail and open space improvements, all of which are located within the Northwest Territories Planning Area.
In 2014, the 74 acre Flex Parcel along with the 549 acre Lease Tern Colony Conservation area, together totaling 623.56 acres, was transferred from the Navy to the VA; and in 2020, the VA requested funding authorization from Congress to compress the previously scoped three phase project into two phases. The VA Project is comprised of Phase I that includes site work, offsite utilities, wetlands mitigation and pad development for a national cemetery columbarium, and Phase II that includes completion of the columbarium, and construction of a full-service outpatient clinic, veterans benefits and conservation management offices, landscaping, and parking.
DISCUSSION
The extension of EBMUD water facilities is necessary to replace out of date and inadequate water service to the Northwest Territories Planning Area (“Northwest Territories”), identified in the Naval Air Station Alameda Community Reuse Plan dated January 1996, as amended.
The VA Project is currently in the design phase for both site work and off-site utilities. The construction phase for off-site utilities is currently slated to begin in April 2023. In order to allow EBMUD to release design for the new water system to the VA to be incorporated into the VA Project off-site utilities package, EBMUD requires contiguous easement areas outside VA Property to be recorded on lands of the City, which extend along City right-of-way in Main Street with connections through to and along W. Redline Avenue, which has split land ownerships between the City and Navy up to the eastern boundary of the VA Property.
Pursuant to a Memorandum of Agreement (“MOA”) and Grant of Non-Exclusive Easement for Access and Maintenance of Utility Systems at the Former NAS Alameda, to which the City is party to, the City was granted the right to assign or transfer interests in Navy Utility Systems Easements located on, in, over and under Retained Government Property, to utility service providers, and enables the City to execute and record an Amended and Restated Partial Assignment of Non-Exclusive Easement, and Grant of Non-Exclusive Easement over Lands of the Navy for utilities, to EBMUD in Exhibit 2. The more traditional Grant of Easement over Lands of the City for utilities to EBMUD is included in Exhibit 3.
ALTERNATIVES
• Adopt the resolution to execute and record the easements to EBMUD, as described above.
• Do not adopt the resolution to execute and record the easements to EBMUD. Not adopting the resolution to execute and record easements to EBMUD would prevent completion of design of EBMUD water facilities and completion of the VA’s off-site utility package and the start of construction currently scheduled for April 2023 and would burden future projects with additional and higher off-site utility installation costs, and furthermore is inconsistent with anticipated terms of the EDC, as amended, and additionally would not be in keeping with the intent of the Formal Term Sheet between the VA and City.
FINANCIAL IMPACT
The City will not receive compensation for granting the easements to EBMUD. There is no impact to the General Fund as a result of this action. Granting the easements to EBMUD does not commit the City to any current or future capital improvement design or construction costs except for future costs associated with tying into existing water facilities to serve future City Projects.
MUNICIPAL CODE/POLICY DOCUMENT CROSS-REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment. This action, authorization to grant a utility easement is not a project pursuant to Public Resource Code section 21065 and CEQA Guidelines section 15378.
CLIMATE IMPACTS
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a resolution authorizing the Interim City Manager, or designee, to execute and record an Amended and Restated Partial Assignment of Non-Exclusive Easement and Grant of Non-Exclusive Easement over Department of the Navy-owned Lands, by and between the City of Alameda and East Bay Municipal Utility District; a Grant of Easement over City of Alameda-owned Lands; and any and all ancillary documents applicable to the extension of water service in Main Street and W. Redline Avenue to property conveyed to the Department of Veterans Affairs at the Former Naval Air Station at Alameda Point.
Respectfully submitted,
Lisa Maxwell, Community Development Director
By,
Douglas Cole, Administrative Specialist III
Financial Impact section reviewed,
Margaret L. O’Brien, Finance Director
Exhibits:
1. Illustrative EBMUD Easement Alignment
2. Amended and Restated Partial Assignment
3. Grant of Easement
cc: Nancy Bronstein, Interim City Manager
Erin Smith, Department Head, Public Works