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Recommendation to Authorize the City Manager to Execute a One-Year Agreement with Terraphase Engineering in an Amount Not-to-Exceed $295,803 Annually, with the Option of Four One-Year Extensions, for a Total Five-Year Expenditure Not-to-Exceed $1,310,083, for Environmental Consulting Services at Alameda Point (Base Reuse and Economic Development 29061822)
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To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Terraphase Engineering (Terraphase) has been serving as the City of Alameda’s (City) Alameda Point environmental consultant since 2018. It is important to have an experienced and sophisticated environmental consultant for Alameda Point, as Alameda Point is a federal “Superfund” (hazardous material contamination) site. Moreover, it takes several years for the environmental consultant to understand the complexity and status of the environmental contamination at Alameda Point. Terraphase’s contract with the City will be fully expended prior to its expiration on July 10, 2026, due to higher than anticipated activity requested by the City. Staff recommends entering into a contract with Terraphase to continue providing environmental consulting services for Alameda Point.
BACKGROUND
Alameda Point was an active United States Navy (Navy) base from 1940 to 1997. It was selected for closure as part of the 1993 Base Realignment and Closure (BRAC). Operational closure occurred in April 1997. 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 at Alameda Point and has been actively investigating and remediating the property for the last 25+ years, during which time it has spent over $500 million on these efforts.
The City uses a professional environmental consultant to provide services regarding the Navy’s remediation of the former NAS Alameda, conveyance of land from the Navy to the City and new development, including tenant improvement work. The environmental consultant serves as a strategic advisor to the City and must possess a comprehensive understanding of the history of Alameda Point to assist with interactions with the Navy, environmental regulators, City Council, community, developers, potential investors and staff on numerous and diverse hazardous material issues.
Terraphase has served as the City’s environmental consultant since City Council approved the initial agreement on July 10, 2018. A subsequent agreement was approved by City Council on September 7, 2021 and this is the final option year of that agreement which expires in 2026. However, due to requests for additional work from the City, Terraphase has expended $484,283 of its current contract which is authorized not-to-exceed $517,909.
In addition, Public Works maintains a separate contract with Terraphase for Marsh Crust reconnaissance sampling and environmental support services related to Alameda Point’s backbone infrastructure construction in an amount not-to-exceed $445,187, which was approved by City Council on April 2, 2024.
DISCUSSION
Terraphase has extensive familiarity with Alameda Point’s environmental challenges. This knowledge is a crucial asset as the City moves forward with subsequent conveyances, as well as development plans, which are likely to include resolution of complex environmental issues. It is important that the City’s consultant have full knowledge and history of issues at Alameda Point to interact effectively with the Navy, Restoration Advisory Board, environmental regulators, City Council, community, and staff on key environmental concerns.
Terraphase is a full-service engineering and consulting firm that provides highly effective client-focused solutions for regional and nationwide agencies and private entities. 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 registered professionals in a variety of science and engineering disciplines and is a California “Class A” General Engineering Contractor; it also possesses a Hazardous Substances Removal Certification. Terraphase’s Oakland office has deep technical and local knowledge to support Alameda Point. Vice President/Principal Geologist Andrew Romolo will continue to serve as the strategic advisor, project manager and primary point of contact for all hazardous materials issues related to Alameda Point.
Over the last two years there has been an increase in the work requiring Terraphase’s particular expertise, which resulted in the budget on Terraphase’s current contract being expended more quickly than anticipated. This included extensive indoor air sampling to remain in compliance with the regulatory agencies, and increased work associated with the development of Site A and West Midway/RESHAP residential projects.
Terraphase’s proposed scope of services for this future agreement assumes that the increased rate of activity over the last two years will continue and anticipates additional major projects that have recently arisen. These include navigating the potential conveyance process for the “Phase 3C” properties, which includes four parcels consisting of Building 41, Building 10, a portion of the Alameda Storage facility, and Building 400, all of which have high presence of per- and polyfluoroalkyl substances (PFAS), overseeing the tarry refinery waste remediation, and additional development and building renovation activities requiring oversight for compliance with the Site Management Plan (SMP).
The agreement scope of services include:
• Preparation for and attendance at Base Cleanup Team meetings with the City, Navy and environmental regulators
• Preparation for and attendance at Restoration Advisory Board (RAB) meetings as an observer
• General support, as well as assessment, monitoring, and testing on building demolition, renovation, and development projects at Alameda Point
• Attendance at meetings in furtherance of conveyance between the City and the Navy, as well as potential developers or lessees of City owned land
• Tarry refinery waste (TRW) correspondence, negotiations support, and remediation oversight
• Consultation and review of per- and polyfluoroalkyl substances (PFAS)-related issues including preparation and modification of documents to address the Environmental Protection Agency’s (EPA’s) CERCLA rules
• Attendance at meetings with Environmental Regulators and technical supplemental meetings
• Indoor and outdoor air consultation as needed
• Review of technical documents, reports, work plans, regulator comments, and preparation of draft City comments
• Additional consultation as requested and authorized by City staff
• General project management.
Staff recommends awarding a contract to Terraphase in the amount of $295,803 annually, including four one-year extension options to be exercised at the discretion of the City Manager for a total contract amount not-to-exceed $1,310,083.
ALTERNATIVES
• Approve the execution of a contract with Terraphase for environmental consulting services, as described in this report.
• Do not approve the execution of a contract with Terraphase for environmental consulting services. In this instance, staff would issue a Request for Proposals for a different environmental consulting firm.
FINANCIAL IMPACT
The estimated contract expenses for Alameda Point are included in the Fiscal Year (FY) 2024-25 budget for Base Reuse and Economic Development approved by City Council. The funding for the annual extensions of the contract for up to four years, if approved, will be budgeted in the Alameda Point Fund for FY 2025-26 and FY 2026-27, subject to City Council appropriations approval. The contract will not have a financial impact on the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code and the Economic Development Strategic Plan. This action aligns with the City FY 2023-26 Strategic Plan projects TIE20 to continue infrastructure improvements at the Base including the design of Alameda Point Adaptive Reuse Area Phase 2 and 3, TIE 25 to implement the City’s Alameda Point Disposition Strategy - renting and leasing City properties, TIE 26 to expand Citywide business economic development activities, including an Alameda Point attraction and retention program and TIE35a to reuse and renovate buildings in NAS Alameda Historic District consistent with Secretary of Interior standards, with consultation and approval by Historic Advisory Board, as feasible.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
Terraphase provides services that enable the City to ensure compliance with various environmental regulations and requirements as part of the management of existing City-owned structures, and for potential new developments.
RECOMMENDATION
Authorize the City Manager to execute a one-year agreement with Terraphase Engineering in an amount not-to-exceed $295,803 annually, with the option of four one-year extensions, for a total five-year expenditure not-to-exceed $1,310,083, for environmental consulting services at Alameda Point.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Service Provider Agreement