Title
Presentation on Draft Master Infrastructure Plan and Conceptual Financing Plan for Alameda Point. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Presentation on Draft Master Infrastructure Plan and Conceptual Financing Plan for Alameda Point
BACKGROUND
The City of Alameda is preparing a comprehensive zoning ordinance amendment, Master Infrastructure Plan (MIP), Town Center and Waterfront Precise Plan, and an environmental impact report (EIR) for Alameda Point for City Council approval in early 2014. These project approvals will facilitate near-term construction at Alameda Point.
The MIP presents a road map for new backbone infrastructure systems at Alameda Point, including new streets, flood and sea-level rise protection, shoreline stabilization, geotechnical mitigations, and wet and dry utilities, for the proposed project contained in the Naval Air Station Alameda Community Reuse Plan, consisting of 1,425 residential units and 5.5 million square feet of commercial space (Exhibit 1). Replacing aging infrastructure with new infrastructure systems is essential to support development at Alameda Point. The MIP will guide infrastructure development at Alameda Point over the next 25 to 30 years and is intended to be flexible and responsive to different disposition and development scenarios.
Most of the existing infrastructure at Alameda Point was installed by the Navy over 70 years ago, and is well beyond its service life. The Navy installed, maintained and improved the existing infrastructure on an as-needed basis. The active, existing utility systems include wastewater, stormwater, potable water, electrical, natural gas and telecommunications. Many of these existing facilities are poorly located for the future. Moreover, while this existing infrastructure is currently operable and services the tenants at Alameda Point, it has deteriorated and badly, and is generally unreliable. It does not meet current codes or standards. The existing infrastructure cannot support the redevelopment of Alameda Point without replacement or rehabilitation for the following reasons:
· The existing stormwater system allows high tide waters to enter the system and flood low lying areas within the project site.
· The sanitary sewer system allows infiltration and inflow into the downstream transmission system during wet weather conditions.
· The water system has been subject to breaks, repairs are costly, and existing tenants are sometimes without water service for up to several days while repairs are completed.
· The telecommunications systems are unreliable and existing tenants have experienced disruptions in service for multiple days.
· The natural gas system does not provide service to portions of the site.
· The sidewalks range from good to poor condition throughout the site and many locations require replacement and do not meet accessibility standards.
The draft MIP establishes the requirements and standards for the infrastructure to support the redevelopment and reuse of Alameda Point.
The draft MIP was presented to the Planning Board on August 21, 2013 and a summary of their feedback is provided at the end of this report.
DISCUSSION
The draft MIP describes the required replacement and/or rehabilitation of existing utility systems, streets and open spaces at Alameda Point. The draft MIP includes information regarding the stormwater, wastewater, potable water, recycled water, electrical, natural gas and telecommunication utility systems. Additionally, the draft MIP describes a "complete streets" internal transportation network to support a variety of modes of transportation. The draft MIP also outlines the required corrective geotechnical and flood protection improvements for the project site. Corrective geotechnical measures are necessary to provide seismic stability of the project's shorelines and underlying soils. Flood protection improvements, including site grading, perimeter improvements and other future adaptive measures, are necessary to protect Alameda Point from the current 100-year tidal event and provide long-term protection for anticipated sea-level rise due to climate change.
For purposes of infrastructure planning, the MIP divides the project site into two main areas: Development Areas and Reuse Areas. The infrastructure needs and requirements for each of these areas is unique and, as a result, the MIP describes the planned backbone infrastructure specific to each of the areas (see Figure 3 in the draft MIP).
The Development Areas are those areas within the project site that will consist of primarily new construction. Most of the existing structures, streets and utilities within these areas would be demolished. New infrastructure would be installed to support the proposed uses within the Development Areas. Construction within the Development Areas would occur in contiguous areas and would be implemented in orderly phases.
The Reuse Areas include areas that overlap with the Naval Air Station Alameda Historic District. In general, but not all cases, the buildings and streetscapes in the Reuse Area are to be preserved and adapted for future productive use. The preservation of many of these historic buildings, landscapes and streetscapes will require specific infrastructure considerations and requirements. Staff anticipates that development within Reuse Areas would be incremental and determined by market demand for existing buildings and highest priority maintenance and repair needs.
The following provides a summary of the major chapters of the draft MIP:
A. Proposed Flood and Sea Level Rise Protection Measures
Future sea level rise would increase the areas of flooding within the project site. The adaptive management plan presented in the MIP will help ensure Alameda Point maintains flood protection and addresses sea level rise over time. The proposed adaptive management plan would commence with constructing an initial flood protection system designed to provide protection from the current 100-year tidal event, plus wave/wind run-up, plus accommodation for 18 inches of future sea level rise consistent with the Bay Conservation and Development Commission polices and other large-scale developments within the Bay Area (see Figures 10 and 11 in the draft MIP).
Scientific uncertainty remains regarding the pace and amount of future sea level rise, therefore a sea level rise monitoring program would be established to periodically review actual sea level rise amounts, trajectories, and updated projections. If future sea level rise amounts exceed 18 inches, additional flood protection measures would be implemented to address sea level rise in excess of 18 inches. The adaptive measures would include preserving inland land and right-of-way along the perimeter of the site such that existing shorelines and floodwalls could be elevated to manage sea level rise. The perimeter improvements would be designed to allow for the future flood protection measures to be widened and support additional height such that no fill is placed in the Bay (see Figures 12 and 14 in the draft MIP). A funding mechanism to implement these future adaptive measures would be established for Alameda Point.
B. Proposed Corrective Geotechnical Measures
The main geotechnical considerations for Alameda Point are similar to those of other waterfront sites in the Bay Area. The considerations include: stability of the northern shoreline, liquefaction, and compressible soils (see Figures 16 through 19 in the draft MIP).
Northern Shoreline
The northern shoreline slopes adjacent to the Development and Reuse Areas are marginally stable under static conditions. However, under seismic loads the northern shoreline is unstable and likely to experience deformations. There are existing key components of infrastructure, such as Main Street, Pump Station 1 and the 20 inch force main, within the zone of potential deformation. Therefore, strengthening of the shoreline is necessary in these areas to reduce the loss or damage of these facilities in a seismic event. There are no corrective measures proposed for the remainder of the northern shoreline adjacent to the Northwest Territories. This area is generally planned for passive open space uses that can accommodate the potential deformations in a seismic event.
Liquefaction
The project site is underlain by potentially liquefiable soils. The amount of potential liquefaction settlement and lateral spreading is greater than what typical structures and infrastructure can tolerate without corrective measures. Ground improvement techniques would likely be necessary to reduce the liquefaction potential of the sandy deposits at the project site to levels that improvements can be designed to tolerate.
Compressible Soil
Soft, highly compressible Young Bay Mud deposits exist with varying depths throughout the project site. The Young Bay Mud can settle due to loading from any new fill or from new structures constructed at the site. A surcharge program will be implemented in the Development Areas to eliminate the potential for long-term settlement within the Development Areas. New structures proposed within the Reuse Areas would be constructed on a deep foundation system. New utilities would be designed to accommodate the anticipated remaining amount of potential long-term settlement.
C. Proposed Street System
The Alameda Point development includes new streets within the non-historic construction areas and rehabilitation of the existing streets within the NAS Alameda Historic District. The proposed onsite street system would provide connected and walkable streets that promote all modes of transportation, emphasizing walking, bicycling and direct and convenient access to high quality transit. The proposed street system at Alameda Point would conform to the City's complete streets policy to provide safe, comfortable and convenient travel for all transportation users. The existing street widths within the NAS Alameda Historic District would be maintained to preserve the historic streetscapes of these streets. Street sections in the non-historic area will be designed to facilitate a range of users, encourage calm traffic flow, and improve and promote the pedestrian and bicyclist experience (see Figures 20 through 27 in the draft MIP). Figures 23 and 24 represent conceptual street sections for the Development and Reuse Areas at Alameda Point. The Planning Board has established a sub-committee to review on new street cross-sections for Alameda Point, which will be incorporated into the final MIP.
Additionally, the draft MIP consolidates the latest information on transit and off-site improvements requirements from the EIR. It is also important to note that a Transportation Demand Management plan is being prepared by the City as part of the EIR process that is anticipated to be finalized at the same time as the other planning approvals. Any changes to this information will be incorporated into the final MIP document.
D. Proposed Parks and Open Space
The MIP also summarizes the existing and proposed parks and open space system within Alameda Point based on the detailed assessment included in the City of Alameda's Urban Greening Plan and the Alameda Point Conceptual Planning Guide recently endorsed by the City Council (see Figures 29 through 31).
E. Proposed Utility Systems
Wastewater
The proposed project would replace the entire wastewater collection system within the project site (see Figures 32 through 36 in the draft MIP). A new wastewater collection system would be installed within the Development Areas, where large-scale areas of new construction are anticipated. While the existing wastewater collection system within the Reuse Areas would be replaced over time, the ultimate wastewater collection system within the Reuse Areas would be replaced similar to the system proposed within the Development Areas.
Stormwater
Stormwater runoff at Alameda Point is currently conveyed directly to outfalls by a storm drain system that is owned and operated by the City of Alameda. The proposed project would replace the entire stormwater management system (see Figures 37 through 44 in the draft MIP). The proposed system would integrate new pipelines, pump stations, multi-purpose basins, and outfalls with water quality treatment features designed to meet current City of Alameda, County of Alameda, and Regional Water Quality Control Board (RWQCB) design criteria. The new stormwater management system would also be designed to address the potential impacts of future sea level rise through forward planning of adaptation strategies and infrastructure.
Potable Water
The proposed project would replace the entire potable water distribution system within the project site (see Figures 45 and 46 in the draft MIP). EBMUD supplies potable water to the project site. The onsite distribution system connects to the existing EBMUD pipelines within Main Street along the eastern edge of the project site.
A new potable water distribution system would be installed within the Development Areas at Alameda Point. The proposed distribution pipelines would connect to the existing EBMUD water facilities in Main Street. While the Reuse Areas within Alameda Point initially would continue to utilize the existing potable water distribution system through an enhanced maintenance program, the ultimate potable water distribution system within the Reuse Areas will be replaced similar to the system proposed within the Development Areas.
Recycled Water
The proposed project would construct a backbone network of recycled water distribution pipelines throughout the project site (see Figures 47 and 48 in the draft MIP). Currently, there is not an existing source of recycled water at Alameda Point. EBMUD is implementing the East Bayshore Recycled Water Project, which supplies recycled water to portions of Oakland and Emeryville. EBMUD plans to extend its recycled water service to the City of Alameda, including Alameda Point.
Electric System
Alameda Municipal Power (AMP) owns and operates the existing electric power facilities at the project site and throughout the City of Alameda. The transmission facilities and substation would be preserved (see Figures 49 through 51 in the draft MIP). The 115kV pole lines directly east and connecting to the Cartwright Substation would be preserved (see Figure 50). An easement, approximately 140-feet wide, would be dedicated to AMP for this area, restricting the potential land uses to landscaping or parking areas.
From the Cartwright Substation, a new underground electric distribution system would be installed within the Development Areas. While the Reuse Areas within Alameda Point initially would continue to utilize the existing electrical distribution system through an enhanced maintenance program, the ultimate electrical distribution system within the Reuse Areas would be replaced.
Natural Gas
The proposed project would replace the entire natural gas distribution system within the project site. While a new natural gas distribution system would be installed throughout the Development Areas, the existing system within the Reuse Areas would be rehabilitated by PG&E.
Telecommunications and Cable Television
The proposed project would replace the entire telecommunications and cable television systems within the project site. The existing communication utility systems at Alameda Point are owned and operated by AT&T, AMP and Comcast. New telecommunications systems would be installed within the Development Areas. While the Reuse Areas within Alameda Point initially would continue to use the existing telecommunication system through an enhanced maintenance program, the ultimate telecommunication system within the Reuse Areas would be replaced.
Street Light System
The proposed project would replace the entire street light system within the project site. The existing street lighting system at Alameda Point is owned and operated by AMP. While a new street lighting system would be installed within all backbone streets of the Development Area, the street light system within the Reuse Areas would be replaced over time.
F. Infrastructure Phasing and Implementation
The existing streets and utility systems within the project site are aged and require rehabilitation or replacement in order to support redevelopment. The backbone infrastructure improvements required for the redevelopment of Alameda Point would be phased to match the development phases as closely as possible. The required improvements for each phase would include demolition, flood protection, corrective geotechnical measures, site grading, utilities, streets and transit and park improvements. In most cases, each phase of development would construct only that portion of infrastructure required to support the proposed uses and surrounding existing uses to maintain financial feasibility of the project. In some cases, initial phases of development would need to construct components of the backbone infrastructure that will also benefit subsequent phases.
The implementation of the backbone infrastructure requires constant coordination. Certain areas may develop concurrently, while other areas may only develop in smaller phases or on a "project-by-project basis." An Alameda Point Infrastructure Fee Program (APIFP) would be established to facilitate the infrastructure implementation and provide a mechanism to coordinate adequate funding. The APIFP would collect fees from both Development and Reuse areas to generate funds to construct infrastructure with site-wide benefits. The APIFP would also provide repayments to initial developments that constructed infrastructure improvements which benefit larger areas.
The draft MIP provides descriptions of several phasing scenarios that illustrate how the infrastructure development could commence in the northern or southern part of the Development Area and in the Reuse Area and shows how a first sub-phase could occur. The draft MIP also discusses the impacts of increasing and decreasing the development program on infrastructure requirements.
Lastly, the draft MIP provides a summary of the cost of backbone infrastructure for Alameda Point. The current estimate is approximately $566 million. Conservatively, this cost estimate includes the $12.5 million in costs that the Department of Veterans Affairs project could save the City, if it is implemented. In addition, the MIP also discusses the potential for $22 million in cost savings from potential value engineering options. The cost estimate will continue to be refined as the planning and development process evolves and other value engineering options are explored.
Part of the presentation this evening will also include a discussion of a conceptual financing plan to assist the City Council and community in understanding the options the City and developers will have for funding and implementing the MIP. The conceptual plan includes a summary of the potential sources of funds, such as land sale proceeds, Community Facilities District financing, assessments, Infrastructure Financing Districts, infrastructure fees, improvement funds, public grants and loans, and private equity. The discussion will also include how other military bases finance infrastructure, and an example of the financial feasibility of a first phase of development and how it is likely to be financed.
Planning Board Feedback on MIP
The following provides a summary of the major comments on the draft MIP by the Planning Board:
· Publicly explain the key differences between this draft MIP cost estimates and those prepared for Suncal.
Response: The Suncal estimates included the following additional costs, which account for the majority of the difference: $33 million for demolition of Building 5; $50 million in additional regional transportation costs; $18 million in additional costs for the sports complex; and $30 million in additional street and utility costs due to 15,000 linear feet of additional backbone streets.
· Review whether 18 inches of sea-level rise for near-term flood protection is sufficient.
Response: Further discussion regarding the technical basis for the 18-inch target will be provided this evening and policy direction from the City Council is requested.
· Explore whether Pump Station 1 can be secured without stabilizing the entire northern shoreline.
Response: This will be addressed in the final MIP.
· Explain the differences between the street classifications in the draft MIP and the General Plan.
Response: This will be addressed in the final MIP.
· Review and revise street cross-sections to evaluate the potential for protected bikeways, buffers for bikes, and modifications to street widths, among other issues.
Response: This will be addressed by Planning Board sub-committee and full Planning Board and incorporated into the final MIP for City Council approval.
· Modify the truck route to a north-south corridor not along the waterfront.
Response: This will be changed and addressed in the final MIP.
· Add a phasing scenario in the Town Center area.
Response: This will be added and addressed in the final MIP.
· Provide a discussion and description of what life cycle and maintenance costs will be and how they will be paid for.
Response: This will be added to the final MIP.
· Provide a list of all of the assessments potentially required for the development.
Response: This will be added to the final MIP.
Next Steps
Staff requests that the City Council and public provide comments on the draft MIP with specific feedback requested on the proposed approach to the following key policy issues:
· The division of Alameda Point into Development and Reuse Areas;
· The initial and long-term adaptive management plan to address sea-level rise;
· Northern shoreline stability; and
· Phasing and implementation.
The feedback provided at the City Council meeting this evening will be incorporated into the final MIP. The draft MIP is also provided on the City's website.
FINANCIAL IMPACT
There is no financial impact to the City's General Fund or Base Reuse Department Revenue Fund (Fund 858) from the acceptance of this report.
ENVIRONMENTAL REVIEW
The City Council's review and comments on the draft MIP requires no environmental review at this time as such review and comments are part of a planning and feasibility study for possible future action that the City has not approved, adopted or funded and the Board's review and comments do not legally bind the Board, the City Council or City staff to any possible future action.
RECOMMENDATION
Provide comments on Draft MIP for Alameda Point.
Respectfully submitted,
Jennifer Ott, Chief Operating Officer - Alameda Point
Financial Impact section reviewed,
Fred Marsh, Finance Director
Exhibits:
1. Draft Master Infrastructure Plan
2. Presentation on Draft Master Infrastructure Plan and Conceptual Financing Plan for Alameda Point