Title
Introduction of Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a 60 Year Lease Agreement and Approve a Temporary Right of Entry Permit with Water Emergency Transportation Authority (WETA) for 0.73 acres of Undeveloped Upland Real Property and 3.4 acres of Submerged Lands located along West Hornet and Ferry Point Streets at Alameda Point. (Base Reuse 858)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Introduce an Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a 60 Year Lease Agreement and Approve a Temporary Right of Entry Permit with Water Emergency Transportation Authority (WETA) for .73 acre of undeveloped upland real property and 3.4 acres of submerged lands a land located along West Hornet and Ferry Point Streets at Alameda Point
BACKGROUND
The Water Emergency Transportation Authority (WETA) Central Bay Operations and Maintenance Facility is being planned and developed to serve as one of two maintenance bases for WETA's existing and future ferry fleet. Staff has been working with WETA on this project for four years. The location of the facility is in the City-owned area known as Term-1 which also is in the State Tidelands. This property has always been City property and leased to the Navy in the 1940s. The Navy returned the property back to the City in 2001. Tidelands leases can be up to 66 years in term.
Because of Alameda's unique geography as an island, staff felt there was an immediate benefit to the community to house the maintenance hub of the WETA fleet. During recent meetings with federal and regional representatives from the Federal Emergency Management Agency (FEMA), ferries were highlighted as an important mechanism for providing services and supplies to the region. Having Alameda serve as home base for maintenance and operations for WETA will position Alameda as a priority for providing our residents with assistance during a regional emergency.
DISCUSSION
This project will mark the first new construction on Alameda Point. The Facility will include a 4-story building, diesel fuel storage tanks, upland work yard, and a 12-slip ferry berthing facility extending from the site shoreline into San Francisco Bay. The total project cost is estimated to be between $45 and $50 million including environmental, design, construction, mitigation, shop outfitting, construction management and support activities, which includes approximately $35 million for construction activities.
The facility will function as the Operations and Control Center and Emergency Operations Center for WETA's central San Francisco Bay ferry fleet. The project includes dredging, approximately 25,000 square foot structure on land, construction of approximately 20,000 square foot marine facility over water and the associated infrastructure. Additionally, the project will include a realignment of the bay trail, improvements to the waterfront part and street/sidewalk improvements. The project site for the proposed facility is located southeast of the intersection of West Hornet Avenue and Ferry Point Road near Pier 3 on property owned by the City of Alameda. The site includes 0.73 acre of undeveloped upland real property, 3.4 acres of submerged lands on San Francisco Bay, and a 75-vehicle paved parking area (Exhibit 1).
The WETA Board has already approved these same documents at its February 5, 2015 meeting. Key terms of the proposed Lease Agreement (Exhibit 2) are as follows:
· Sixty year term commencing upon approval of Lease Agreement;
· Initial monthly rent of $5,125, commencing upon receipt of Certificate of Occupancy and subject to annual adjustment based on the Consumer Price Index for the ground lease;
· WETA will provide defined infrastructure improvements in lieu of City Development Impact Fees required for new development at Alameda Point (Described in Exhibit H of the Lease);
· A Right of Entry Permit (Exhibt 3) to construct public access improvements within the adjacent park area as required by BCDC as a part of the project permit. These improvements will be transferred to either the East Bay Regional Park District or City upon completion; and
· WETA will provide insurance negotiated by the City's Risk Manager which includes $5 million in Commercial Pollution Liability; $2 million Wharfingers Insurance; and $4 million Commercial Marine Liability Insurance.
Staff examined the proposed on and off site infrastructure improvements in comparison with the Alameda Point Master Infrastructure Plan (MIP). WETA will be providing $2.5 million worth of improvements included in the MIP. The most significant investment is the $ 1 million water line extension which will be large enough for new services to build off of it. Other MIP improvements are the waterfront park, contributing to the reconfiguration on Main street, and flood protection improvements.
WETA has been acutely aware of the community concern regarding the impact of their project on the habitat at Alameda Point, more specifically the Harbor seal population seen at Alameda Point. They have gone through a variety federal and state environmental review processes with the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration's National Marine Fisheries Service (NOAA-NMFS). None of the regulatory agencies have made findings or restrictions on the final WETA project; however, NOAA-NMFS will issue Incidental Harassment Authorization to WETA for implementation during construction. WETA is required to have on-site a NOAA-NMFS-approved Protected Species Observer to monitor the impact of construction on marine mammals. Both staff and WETA have consulted our respective biologists about addressing the Alameda Point Harbor Seals. The City's biologist concurred with NOAA-NMFS about the number of seals being low. In addition, the biologist remarked that the breakwater, very close in proximity to the dilapidated dock, provides miles of area for seals to haul out and is even closer to the deep water that the seals use for protection and migration.
Harbor seal haul-out behavior has been studied by several researchers yielding a solid understanding of seal behavior. In many of these studies, tidal state is the most consistent factor influencing the daily timing of when seals haul out. Some of the studies revealed that the highest proportion of seals ashore occurs between 2 hours before and 2 hours after low tide. Lower tides often expose rocky reefs, sandy beaches and mudflats that are favorable haul-out sites for seals because of isolation from land predators and quick access to deep water. In areas where seals rest on habitats or man-made structures such as that at Alameda Point, tidal state is less influential.
Even though the seal haul out is not an environmental condition noted by any regulatory agency nor are there any regulatory requirements associated with their project, WETA has voluntarily agreed to use commercially reasonable efforts, prior to the removal of the existing haul out, to locate, design, and construct an alternate seal haul out which will be outlined in a negotiated Memorandum of Understanding.
WETA made a preliminary concept plan for the project to the Planning Board in November 2010. They are scheduled to take the entire project before the Planning Board in March 2015. The project was presented to the City's internal Design Review Team February 25, 2015. They are required to comply with all city, state and federal laws.
FINANCIAL IMPACT
The monies from the new lease will be deposited into the Base Reuse Department lease revenue fund and are limited to uses permitted under the LIFOC and the Economic Development Conveyance Memorandum of Agreement with the United States Navy.
ENVIRONMENTAL REVIEW
WETA has completed all of its environmental review obligations. The CEQA: Mitigated Negative Declaration was adopted by WETA Board in June 2011 and the NEPA Determination of Categorical Exclusion was issued May 2013.
RECOMMENDATION
Introduce an Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a 60 Year Lease Agreement and Approve a Temporary Right of Entry Permit with Water Emergency Transit Authority (WETA) for .73 acre of undeveloped upland real property and 3.4 acres of submerged lands a land located along West Hornet and Ferry Point Streets at Alameda Point.
Respectfully submitted,
Jennifer Ott, Chief Operating Officer - Alameda Point
By,
Nanette Mocanu, Acting Assistant Community Development Director
Financial Impact section reviewed,
Juelle-Ann Boyer, Interim Finance Director
Exhibits:
1. Diagram of Leasehold area/Project Area
2. Copy of Lease Agreement
3. Copy Right of Entry Agreement
4. Conceptual Drawings of the Project