Title
Recommendation to Authorize the City Manager to Terminate the Contract for the City Aquatic Center with Blach Construction and Issue a Revised Request for Proposals/Request for Qualifications for the Design and Construction of the City Aquatic Center. (Recreation and Parks 10051400)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) entered into a contract with Blach Construction, Inc. (Blach) for the design and construction of the City Aquatic Center (Center) located in Jean Sweeney Open Space Park in May 2024. Blach requested that the contract be terminated by mutual agreement. Staff concurs with that request. If the contract is terminated, a revised RFP/RFQ should be issued in order that the project proceed.
BACKGROUND
In Fiscal Year (FY) 2019-20 budget, City Council authorized funding for the Center conceptual design. In January and February 2020, the City held community workshops on pool design options and the input was incorporated into a final conceptual design. This design was recommended by the Recreation and Parks Commission on August 13, 2020. The project was paused, however, due to the pandemic, shifting priorities, and lack of funding sources.
On February 15, 2022, City Council heard options to fund aquatic facilities in the City, including the rebuild of the Emma Hood Swim Center at Alameda High School and construction of a Center on a City-owned site. City Council provided general direction to staff to further pursue possible funding mechanisms for both facilities.
On October 18, 2022, City Council approved the Center to be constructed on the west side of Jean Sweeney Open Space Park. At the same meeting, City Council also approved funding up to 50% of the Center costs, including design and construction, using the General Fund Unassigned Residual Fund Balance and funding the balance of project costs with a financing mechanism to be determined.
On February 21, 2023, City Council approved funding the Center in the amount up to $30 million with $15 million from the Unassigned Residual General Fund balance and financing the remainder from a Certificate of Participation. This approval included the provision that when staff returned with a final financing plan, information on the cost of funding a 50-meter pool and alternatives for funding the 50-meter pool were to be included.
On July 18, 2023, City Council authorized the City Manager to execute an agreement with Griffin Structures, Inc. for the project management of the Center.
On September 19, 2023, City Council approved the sale of bonds in an amount not to exceed $16 million to finance the construction of the Center. A detailed cost analysis comparing 50-meter and 30-meter pools was provided in the staff report. The final sale provided $15 million for the Acquisition and Construction Fund.
On May 7, 2024, City Council approved and awarded the Phase I Design/Build Agreement for the Design and Permitting of the Center to Blach. Blach has requested the Agreement to be terminated mutually (Exhibit 1). If the Agreement is terminated, then the City needs to issue a revised Request for Proposals/Request for Qualifications (RFP/RFQ) in order to continue progress on the project.
DISCUSSION
Staff concurs with the request of Blach to terminate the Agreement. Blach is owed no additional money under the Agreement. City Council in July authorized a separate contract with ELS (which was a design subconsultant under the Blach Agreement) for design work and coordinating community meetings on the project. That contract and work will continue through the end of this year.
If the contract is terminated, in order to keep the project moving forward, the City needs to issue a revised RFP/RFQ. Staff has prepared a revised RFP/RFQ and is ready to issue it and bring a new agreement to City Council with a different Design Build team to complete the Center construction documents, permitting and construction.
ALTERNATIVES
• Terminate the contract with Blach for the design and construction for the Center.
• Do not terminate mutually contract with Blach for the design and construction for the Center and provide direction to staff.
FINANCIAL IMPACT
There is no financial impact for mutual termination of the contract.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code Section 2-61.8 related to Design-Build. The 2023-2026 Strategic plan identifies the Center under the strategic priority “Enhance community Safety and Services” project CS10. This action is subject to the Levine Act.
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 is not a project pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to terminate mutually the contract with Blach for the City Aquatic Center and issue a new RFP/RFQ for the design and construction of the Center.
Respectfully submitted,
Justin Long, Director of Recreation and Parks
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Request for Mutual Termination