Title
Recommendation to Authorize the City Manager to Execute an Agreement with Marcy Wong Donn Logan Architects in the Amount of up to $1,604,676 in Fiscal Year 2017-2018 Renewable Annually by the City Manager for up to Four Additional Years for a Total Compensation of $1,604,676 for Architectural and Engineering Services for Design of the Seaplane Lagoon Ferry Terminal; and
Adoption of Resolution Increasing the Capital Projects Seaplane Lagoon Ferry Terminal Project (91814) by $1,604,676 from the Base Reuse Fund and Tideland Trust Budgets for Fiscal Year 2017-2018. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Authorize the City Manager to Execute an Agreement with Marcy Wong Donn Logan Architects in the Amount of up to $1,604,676 in Fiscal Year 2018-2019, Renewable Annually by the City Manager for up to Four Additional Years for a Total Compensation of $1,604,676 for Architectural and Engineering Services for Design of the Seaplane Lagoon Ferry Terminal; and Adoption of Resolution Increasing the Capital Projects Seaplane Lagoon Ferry Terminal Project (91814) by $1,604,676 from the Base Reuse Fund and Tideland Trust Budgets for Fiscal Year 2017-2018
BACKGROUND
On June 16, 2015, the City Council approved a Disposition and Development Agreement (DDA) with the private developer, Alameda Point Partners, LLC (APP), for the Site A Development at Alameda Point, consisting of a 68-acre mixed-use project at the gateway of Alameda Point.
Contingent upon the closing for the City’s transfer of the Phase 1 property, APP is obligated to pay $10 million toward the costs incurred for permitting, design and construction of the Seaplane Lagoon Ferry Terminal and associated parking and landside improvements.
As part of the backbone infrastructure included with the Phase 1 development, APP and the City agreed to cooperate in the construction of a permitted and operating ferry terminal at Seaplane Lagoon. In accordance with the DDA [Article 5.1(b)(1)], a Ferry Terminal Plan shall be developed with a reasonable conceptual design and the Parties’ best estimate of the schedule and costs based on available information. Upon approval of the Ferry Terminal Plan, the City will obtain third party permits and approvals necessary for construction and operation of the Ferry Terminal.
On April 5, 2016, the City Council approved the Ferry Terminal Plan (Exhibit 1) and a Memorandum of Understanding (MOU) between the City of Alameda and the Water Emergency Transportation Authority (WETA) to provide a framework for collaboration, funding, operations and maintenance of the ferry terminal.
In March 2017, the City was awarded an $8.2 million grant for the construction of the Seaplane Lagoon ferry terminal from the Alameda County Transportation Commission which completes the funding for the project. In addition, WETA has obtained funds for the required vessels and the upcoming Regional Measure 3 ballot measure on the June 2018 ballot includes operational funding for the ferry terminal and would allow operations to begin in 2020.
On July 5, 2017, the City Council approved a DDA Amendment with APP which included compensation to the City for the delay in the Phase 1 Outside Closing Date of April 11, 2107 at the rate provided in the DDA of $50,000 per acre for the 27 acres of Phase 1. APP paid the City a $1.35 million Option Extension Payment to extend the Phase 1 Outside Date from of April 11, 2017 to April 9, 2018. The DDA Amendment states that after APP completes 50 percent of Phase 1 infrastructure that this payment (less $150,000 in non-refundable payment) would be applied towards the ferry terminal payment. If APP closes prior to the Phase 1 Outside Closing Date (April 9, 2018) the $1.35 million Option Extension Payment would be prorated by the number of months delay. Therefore, the Option Extension Payment provides a mechanism for funding expenses for the ferry design expenses that can be reimbursed upon closing of Site A.
This report proposes awarding the $1,604,676 architecture and engineering contract for the Seaplane Lagoon ferry terminal to Marcy Wong Donn Logan (MWDL) in advance of the closing of Site A for three key reasons:
1. Jump start the design and permitting process with an assembled team of consultants to meet the timeline for completion of ferry construction in FY 19/20 if Site A closes;
2. Expedite design of the float component of the ferry terminal to coordinate procurement with the Port of San Francisco’s Mission Bay project for a potential savings up to $700,000 in delivery costs; and
3. Ability to reimburse the proposed contract funding if Site A closes with the $10 million ferry payment or if Site A doesn’t close on April 9th to cover the limited contract expenditures from the date of the Notice to Proceed with the non-refundable payment.
The report will provide more information about the advantages of moving forward with the contract award now, the limited City liability, and about the qualifications of the MWDL team.
DISCUSSION
Upon approval of the Ferry Terminal Plan in April 2016, staff worked with a team of consultants to further develop preliminary design concepts for permit review and approval by Federal and State permitting agencies, including the Bay Conservation Development Corporation (BCDC). Staff took the preliminary designs to BCDC’s Design Review Committee in June 2016 for approval of the design and public access elements. The committee supported the design with recommendations for a canopy and other interactive elements on the promenade outside the ferry.
Staff reached out to WETA for referrals of architects with experience designing ferry terminals and canopies and MWDL came highly recommended for their work on the Richmond Ferry Terminal and other WETA public projects. MWDL’s Statement of Qualifications is included in (Exhibit 2). In August, 2016, staff contracted with MWDL for canopy design concepts. MWDL developed several canopy concepts that were presented to the City’s Planning Board in September 2016 with one design emerging as the preferred concept. MWDL coordinated with the ferry consultant team’s marine and civil engineers and landscape architect to incorporate and further the design detail to approximately 10% completion in anticipation of presenting it to the City’s Design Review Board and Historic Advisory Board for approval before the delay in the close of Site A in December 2016. No additional work on the project has been done since that time.
MWDL was formed in 1999 in Berkeley and has been widely recognized for excellence in architectural and environmentally sustainable design and has received numerous awards for individual projects. MWDL has a 13-year track record designing major waterfront and berthing facility projects in the Bay Area resulting in the firms’ depth of marine facility experience with environmental review and entitlement processes involving BCDC, WETA, local municipalities and other government agencies. Reviewers felt MWDL demonstrated a strong and in depth background in designing public sector waterfront projects, such as WETA’s Richmond Ferry Terminal and North Bay Maintenance and Operations Center, preparing feasibility studies for Berkeley and Antioch Ferry Terminals and designing related on-shore facilities, such as the US Coast Guard OCCS Building on Coast Guard Island, adaptive Reuse of Ship-Building facilities at Pier 70 and the National Park Service Rosie the Riveter Visitor Education Center. MWDL also comes highly recommended by WETA as an architecture firm with unique expertise in ferry terminal design and as lead architect in managing ferry projects.
MWDL is proposed as the prime architect to lead the architectural and engineering team because of the depth of their experience in marine facility design, their direct experience in design concepts for the canopy and ramping/stair system of the ferry terminal and familiarity with the unique aspects of the project site, its locational conditions and the existing working relationship established with many of the ferry consultants that have been working on the project since the Ferry Terminal Plan was approved in 2016.
The project scope includes design and engineering of both waterside and landside improvements described below:
1. Abutment and pier with shade structure at entrance to terminal for passenger, gangway and float structure and associated gates and fencing;
2. Shoreline repairs or modifications, as necessary, where abutment ties into the shoreline;
3. Parking facilities for 400 vehicles at an interim location with passenger drop-off and pick-up;
4. Public access path connecting Site A to the terminal, new bike access routes and bike parking; and
5. Bus turn-around and drop-off and pick-up at the entrance to the ferry plaza.
The fee proposal and scope of work under the MWDL contract is included as Exhibit 4 and includes:
• Preparation of 30% design and engineering documents;
• Assistance with local, state and federal entitlement approvals, environmental permits, etc.;
• Preparation of 90% design and engineering documents;
• Preparation of 100% design and engineering documents;
• Support during construction bid process and contract negotiations; and
• Construction administration.
Staff consulted with WETA to review the MWDL fee proposal on a line item basis and as a percentage of projected construction costs. WETA found the MWDL to be consistent in both categories with other ferry design contracts they have awarded.
Award of the contract with MWDL, in advance of the closing of Site A and the $10 million promissory note from APP, will allow the project design, in particular the float design, to advance quickly to potentially take advantage of an opportunity for significant cost savings by coordinating the float construction and delivery with the Port of San Francisco and their Mission Bay ferry terminal project. The coordinated effort would save approximately $700,000 by splitting the transportation costs which are estimated at $1.3 million for one float shipped from Texas through the Panama Canal. Details of the procurement and cooperation agreements with the Port of San Francisco are under discussion.
Funding and award of the MWDL contract now, will allow the City to get a jump on the design and permitting process to start construction in the 2019 in-water work window that is critical for completing construction in time for commencing operations of the Seaplane Lagoon terminal in 2020, and will take advantage of the potential $700,000 savings described above. To award the contract is it necessary to cover the full cost of the contract with existing funding sources. Staff proposes using sources of funding that are currently available from the $1.35 million APP Option Extension Payment along with $254,675 from the Tideland Trust Fund until Site A closes and the $10 million is available to reimburse expenditures. Any minimal design expenses incurred from the date of the Notice to Proceed to the close of Site A or if Site A does not close, would be paid from the non-refundable portion of the Option Extension Payment. The remaining Option Extension Payment and Tideland Trust funds would be reallocated back to the original source of funding.
Below is an assessment of the various potential outcomes of using the $1.35 Extension payment and the $150,000 reimbursable portion to fund the contract now, in light of the uncertainty of when or if Site A closes.
|
Scenario |
Outcome |
|
1. Site A closes on or before 4/9/18 |
The non-refundable portion of the Option Extension Payment ($150k) would cover any contract expenses from Notice to Proceed to Close of Site A, if any, which would comprise a month or less of minimal expenses. The $10 million Promissory Note would reimburse these expenditures and fund the remaining MLDW contract. |
|
2. Site A doesn’t close on 4/9/18 and defaults |
City keeps the non-refundable Option Extension Payment and funds any minimal expended portion of the MWDL contract and then determines whether to terminate or continue the contract upon further discussions with WETA. |
|
3. Site A opts to extend the Phase 1 closing date to a future date |
City keeps Option Extension Payment and funds MWDL contract. If Site A closing occurs at a later date, the $10 million Promissory Note would reimburse these expenditures and fund the remaining MWDL contract. |
As depicted in the table above, whether Site A closes or not, the funds provided by Site A either via the Option Extension Payment or $10 million contribution will be sufficient to cover the MWDL design and construction contract expenses. Staff recommends awarding contract to Marcy Wong Donn Logan Architect in the amount of $1,604,676. The contract also permits an annual extension of the contract for time only, on a year-to-year basis, for up to four additional years. The total compensation for the entire contract will not to exceed $1,604,676. Any time extensions per the contract would be based upon satisfactory performance of all aspects of the contract.
FINANCIAL IMPACT
Funding of the MWDL contract now, will put the City in a favorable position to complete the design and permitting process in time to start construction in the 2019 in-water construction window (June thru November) , as well as to take advantage of the potential $700,000 savings described above. Staff proposes using sources of funds that are available now from the $1.35 million APP Option Extension Payment along with $254,675 from the Tideland Trust Fund until Site A closes and the $10 million promissory note is available to reimburse any expenditures and fund the remaining MWDL contract. If Site A does not close on April 9th, the City keeps the non-refundable Option Extension Payment and funds any minimal design expenses and then determines whether to terminate or continue the contract upon further discussions with WETA.
To fund the contract now, with existing funds, it is recommended that CIP Number 91814 revenue and expenditure budget be increased by $1,604,676 and $254,676 from the Tidelands Trust Fund 216 and $1,350,000 from Base Reuse (819099) Developer Contribution account serve as gap funding until the outcome of Site A is known. A resolution amending the City’s FY 17-18 Capital Improvement Project Fund Budget has been prepared for City Council adoption.
This contract will not have a financial impact on the General Fund as any design expenses the City incurs between the time a Notice to Proceed is issued and the determination of the status of Site A will either be paid from the non-refundable portion of the Option Extension Payment or from the $10 million promissory note that is available upon the close of Site A.
If Site A does not close by the April 9, 2018 deadline, staff will determine whether to proceed with further expenditures using the $1.35 million Option Extension Payment or to suspend expenditures on the project until there is more certainty about Site A or other future additional funding for construction of the Seaplane Lagoon Ferry Terminal. Funding for the Seaplane Lagoon Ferry Terminal may be available upon passage of Regional Measure 3 (RM3), a comprehensive suite of transit improvements that will be decided in the June 2018 election.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Ferry Terminal Plan approved on April 5, 2016 and is consistent with the Community Reuse Plan, the General Plan, Waterfront and Town Center Plan for Alameda Point.
ENVIRONMENTAL REVIEW
This action relies on the Alameda Point Project EIR (2014) and Addendum (2016) to the Certified Final Environmental Impact Report for the Alameda Point Project for a New Ferry Terminal at the Seaplane Lagoon at Alameda Point. No further environmental review is required under California Environmental Quality Act (CEQA) Guidelines, sections 15162 and 15163. This action is also exempt under Public Resources Code Section 21083.3 and CEQA Guidelines, section 15183, each as a separate and independent basis.
RECOMMENDATION
Authorize the City Manager to execute an agreement with Marcy Wong Donn Logan Architects in the amount of up to $1,604,676.00 in Fiscal year 2018-2019 renewable annually by the City Manager for up to four additional years for a total compensation of $1,604,676.00 for architectural and engineering services for design of the Seaplane Lagoon Ferry Terminal; and adopt a Resolution increasing the Revenue and Expenditure Budgets of the CIP Budget (91814) by $1,604,676.00.
Respectfully submitted,
Jennifer Ott, Base Reuse and Transportation Planning Department Director
By,
Michelle Giles, Redevelopment Project Manager, Base Reuse
Financial Impact section reviewed,
Edwin Gato, Acting Finance Director
Exhibits:
1. Ferry Terminal Plan
2. Statement of Qualification
3. Fee Proposal/Scope of Work
4. Contract for Architectural and Engineering Services