Title
Recommendation to Award a Contract in the Amount of $1,122,055, including a 15% Contingency, to Carlson, Barbee & Gibson, Inc. for Civil Engineering Services to Replace Backbone Infrastructure in Alameda Point’s Reuse Area to East Bay Municipal Utility District (EBMUD) Standards; and
Adoption of Resolution Amending the Base Reuse Fund and Alameda Point Capital Projects Fund Budget for Fiscal Year 2017-18. (Base Reuse 858)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Award a Contract in the Amount of $1,122,055, including a 15% Contingency, to Carlson, Barbee & Gibson, Inc. for Civil Engineering Services to Replace Backbone Infrastructure in Alameda Point’s Reuse Area to East Bay Municipal Utility District (EBMUD) Standards; and
Adoption of Resolution Amending the Base Reuse Fund and Alameda Point Capital Projects Fund Budget for Fiscal Year 2017-18
BACKGROUND
On February 4, 2014, upon acquisition of major portions of Alameda Point from the Navy, the City Council approved the necessary planning documents for redevelopment of Alameda Point, including the Master Infrastructure Plan for Alameda Point (MIP). The approved MIP provides the master plan for the phased replacement of all of the Navy’s outdated and substandard utility infrastructure, including water, sewer, storm drain, electrical, gas, telecommunications, and surface street improvements at Alameda Point.
Pursuant to the MIP, new infrastructure will be implemented differently in the Reuse Area than in the Development Areas as depicted in Exhibit 1, to address the specific infrastructure requirements needed to preserve the NAS Alameda Historic District (Historic District) in the Reuse Area. Due to the fact that the Reuse Area is comprised of the Historic District that constrains the new development process, the buildings within the Reuse Area are planned to be sold and reused incrementally to private property owners on a parcel-by-parcel basis. Upon receipt of funds from the sale of the properties within the Reuse Area, the City will oversee the logical implementation of the new infrastructure in the Reuse Area.
Currently, the City owns the water distribution facilities at Alameda Point, which connect to the East Bay Municipal Utility District (EBMUD) system at three master meters on Main Street. The water facilities were installed by the Navy and the majority of the system is over 60 years old. On May 2, 1997, the City first entered into a Joint Exercise of Powers Agreement (JPA) with EBMUD for the operation and maintenance of the water distribution facilities at Alameda Point. This agreement was amended five times, most recently in 2010, and expired March 31, 2017. On April 18, 2017, City Council approved a 6-month Short Term Maintenance Agreement with EBMUD to provide continued services while the City and EBMUD negotiated the terms of a Water Infrastructure Agreement addressing the incremental development and phased infrastructure implementation in the Reuse Area.
On June 6, 2017, the City Council approved, and on June 14, 2017 EBMUD signed, a Water Infrastructure Agreement with EBMUD (Agreement) (Exhibit 2). Per EBMUD Regulations Governing Water Service to Customers (Regulations), private property owners within their potable water service area must be an EBMUD customer with direct access to EBMUD water infrastructure. This Agreement allows the City to sell parcels in the Reuse Area to private property owners inconsistent with the Regulations, assuming the City remains in compliance with the terms of this Agreement. The Agreement requires the City to build out the water system replacements in the Reuse Area in phases, as shown in Exhibit C of the Agreement (Phasing Plan), and in accordance with the conditions and milestones contained in the Agreement. The Agreement also extends the duration of the Short Term Maintenance Agreement for 5 years assuming the first property would sell in the Reuse Area, which occurred July 3, 2017 for Building 91 and resulted in close to $3 million in building sales proceeds to the City.
Exhibit D of the Agreement contains a Feasibility Study, performed by the City, to demonstrate that sufficient proceeds from the sale of parcels within in each phase exist or will exist to construct the water system improvements. As shown in the Feasibility Study, proceeds are projected to be sufficient to implement the phased water system improvements, estimated at a total cost of $14.4 million ($5.5 million for Phase 1, $5.9 million for Phase 2, and $3.0 million for Phase 3).
As the first parcel sold in Phase 1, the City has a 9-month deadline (April 3, 2018), per Agreement, to submit an EBMUD Mainline Extension Application including all fire flow requirements, site improvement plans, tentative parcel map, among other materials and a non-refundable Water Service Estimate per EBMUD Regulations. EBMUD will prepare a Main Extension Agreement for execution by the City, at which time, 10% of the EBMUD design and estimated construction cost will be due to EBMUD. This upfront deposit is estimated at $1 million for all three phases.
In addition to the EBMUD mainline extension, the City must prepare and process Water Service Applications to transfer each domestic and fire service currently on the Navy water main to the new EBMUD water main, making those parcel owners/tenants EBMUD customers in accordance with the EBMUD Regulations prior to release of EBMUD’s final design of the new water main extension. As part of the Water Service Application process, EBMUD System Capacity Charges (SCC) and Wastewater Capacity Fees (WCF) will be due. As part of the Agreement, EBMUD provided the City with credits for SCC and WCF that it has from the future elimination of the three master meters at Alameda Point as specified in Exhibit E and F of the Agreement, respectively. On July 18, 2017, the City Council already authorized the allocation of these credits toward all of the tenants and uses affected by the proposed Phasing Plan contained in the Agreement.
DISCUSSION
To meet the April 3, 2017 deadline of submitting an EBMUD Mainline Extension Application for the Reuse Area, the City posted a Request for Proposal (RFP) for Civil Engineering Services to Renew the Backbone Infrastructure in Alameda Point’s Reuse Area. To solicit the maximum number of proposals, a notice was placed on the City's web page and published in the Alameda Sun on July 20, 2017. On August 10, 2017, two firms submitted proposals. The following firms submitted acceptable proposals:
|
Bidder |
Location |
|
BKF |
Walnut Creek, CA |
|
Carlson, Barbee & Gibson, Inc. |
San Ramon, CA |
Selection was based on the completeness and quality of the proposal response, the firm's ability to understand and articulate the project and City needs, the project plan, timeline, qualifications, references, past projects, interview performance and cost. City staff requested EBMUD’s participation on the interview panel. The panel unanimously selected Carlson, Barbee & Gibson, Inc. (CBG) as the most suitable firm to provide the needed civil engineering, surveying and land planning services. CBG articulated an approach to the design and water coordination services adaptable to the uncertain pace of buildings sales in the Reuse Area.
The City needs to minimize the risk that a first sale of property in a phase occurs, initiating the requirement for an EBMUD Mainline Application, but then sufficient proceeds from additional sales are not generated in time to support construction. CBG understood this and prepared a proposal of design/construction package services in three phases, demonstrating better preparation and approach to the proposed scope of work. BKF prepared a proposal based on a single EBMUD Mainline Application and construction package, which would demand $14.4 million in proceeds to be generated within the 30 month window from design to construction, as indicated in the Water Infrastructure Agreement. CBG’s proposal of services for each of the three phases allows the most flexibility and likelihood of compliance with the Water Infrastructure Agreement.
Building the phased water system improvements first and separately from the other utilities and improvements in the Reuse Area has a marginal premium, which is estimated at approximately $2 million or three percent of the total cost to improve the water, sewer, storm drain, electrical, gas, telecommunications, and surface street improvements. However, this approach lays the foundation for the subdivision and selling of parcels in the Reuse Area unhindered by EBMUD Regulation, reduces the overall City cost incurred for maintenance and repair of the deteriorating Navy water system, removes City liability for water quality and associated public health risks, and establishes tenants as direct EBMUD customers, decreasing City staff time needed to facilitate and ensure these services are provided.
As the sale of Building 91 generated nearly $3 million, staff recommends awarding CBG a contract to support design of all three water phases and of an alternative project that includes all utilities and surface improvements, in addition to water infrastructure, for Phase 1. The RFP stated the City’s consideration of this alternative project and reserved its right to negotiate such services for the final scope of work. City staff think it best to have the option of implementing some or all of the other utilities and surface street reconstruction at the same time as the water system improvements to economize on trenching costs, if sufficient Reuse proceeds are obtained.
FINANCIAL IMPACT
The proceeds from the sale of Building 91 were received and deposited in the Base Reuse Fund in Fiscal Year 2016-17 and were restricted for infrastructure improvements at Alameda Point consistent with the MIP and the City’s agreement with the United States Navy. Because the timing of property sale was unknown at the time the Fiscal Year (FY) 2017-19 Budget was approved, this project budget was not included in the FY 2017-19 Budget approved by City Council in June 2017. To ensure proper tracking of the expenditures for reporting purposes, staff recommends setting up a new Fund dedicated to Alameda Point capital projects, which will be included in the City’s overall Capital Improvement Program. FY 2017-19 Budget amendment is required to appropriate the funds available from the proceeds from sale of Building 91 into a project where contract for renewal of backbone infrastructure in Alameda Point’s Reuse Area will be accounted for.
|
Fund/Account |
Amount |
|
Base Reuse Fund |
|
|
Transfer Out |
$2,894,544 |
|
Alameda Point Capital Projects Fund |
|
|
Transfer In |
$2,894,544 |
|
Consulting Services |
$2,894,544 |
There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Municipal Code.
ENVIRONMENTAL REVIEW
On February 4, 2014, the City of Alameda certified the Alameda Point Final EIR in compliance with the California Environmental Quality Act (CEQA). The Final EIR evaluated the environmental impacts of redevelopment and reuse of the lands at Alameda Point consistent with the Alameda Point Zoning Ordinance and MIP, which included the Reuse Area. No further review is required for civil engineering services pertaining to redevelopment of the land.
RECOMMENDATION
Award a contract in the amount of $1,122,055, including a 15% contingency, to Carlson, Barbee & Gibson, Inc. for civil engineering services to replace backbone infrastructure in Alameda Point’s Reuse Area to EBMUD; and
Adopt a Resolution to amend the Fiscal Year 2017-18 Budget for the Base Reuse Fund and Alameda Point Capital Projects Fund (new fund) by appropriating $2,894,544, respectively.
Respectfully submitted,
Liam Garland, Acting Public Works Director
By,
Erin Smith, Acting Deputy Public Works Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Alameda Point Reuse and Development Areas
2. EBMUD Agreement
3. Contract