Title
Adoption of Resolution Amending the Fiscal Year 2019-20 Capital Projects Fund Budget for the Seaplane Lagoon Ferry Terminal Project by $10,200,000 Funded by an $8,200,000 Grant from Alameda County Transportation Commission and a $2,000,000 Grant from the Water Emergency Transportation Authority. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
This report provides background on the funding for the Seaplane Lagoon Ferry Terminal Project and recommends adoption of a resolution to appropriate approved funds from the Alameda County Transportation Commission (ACTC) and the Water Emergency Transportation Authority (WETA) to the Seaplane Lagoon Ferry Terminal capital project.
BACKGROUND
On June 16, 2015, the City Council approved a Disposition and Development Agreement (DDA) with 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. As part of the backbone infrastructure included with the Phase 1 development of Site A, APP and the City of Alameda (City) agreed to cooperate in the design, permitting and construction of a new ferry terminal at Seaplane Lagoon (Seaplane Lagoon Ferry Terminal), and APP agreed to contribute $10 million towards its development.
On April 5, 2016, the City Council approved the Ferry Terminal Plan and a Memorandum of Understanding (MOU) between the City and WETA (Exhibit 1) to provide a framework for collaboration on funding and operations of the Seaplane Lagoon Ferry Terminal, which was then estimated to cost approximately $18.2 million. The MOU outlined that WETA was responsible for obtaining funds for operations and procuring the required vessels and the City was responsible for securing sufficient funds for the development of the new Seaplane Lagoon Ferry Terminal. Both parties agreed to cooperate with each other in obtaining funds for these purposes.
On April 27, 2017, the ACTC approved funding for the Seaplane Lagoon Ferry Terminal in the amount of $8.2 million for the construction phase beginning in Fiscal Year (FY) 2019-20. On April 17, 2018, the City Council authorized the City Manager to execute documents necessary to accept the ACTC grant funding for the project. On June 17, 2019, ACTC’s Board approved the appropriation of funding for the project.
In June 2018, it was determined that the design, updated from 2016, was estimated to cost $22.2 million, exceeding the previous estimate by $4 million due to significant annual construction cost escalation.
On June 19, 2018, the City Council adopted a budget for FY 2018-19 that included $2 million in additional funds for the ferry project.
On September 4, 2018, the City Council approved an updated Ferry Terminal Plan (Exhibit 1) with a budget of $22,200,000, which anticipated a contribution from WETA to fully fund the project.
On September 6, 2018, the WETA Board of Directors approved a contribution of $2 million toward the construction of the ferry project, as the last funds into the project. On June 12, 2019, the City and WETA executed a Funding Agreement committing those funds for the project.
DISCUSSION
Funding agreements between the City and WETA and the City and ACTC have been executed by all parties and the project is fully funded. Construction is anticipated to begin on July 1, 2019, and be completed in spring 2020.
As a result of the WETA funding agreement and ACTC’s appropriating funds, the FY 2019-20 Capital Projects Fund budget needs to be increased to reflect these outside funding sources.
ALTERNATIVES
There are no alternatives
FINANCIAL IMPACT
The budget for the Seaplane Lagoon Ferry Terminal project is included in the Capital Projects Fund (Fund 310) and is managed by the Community Development Department. Current project budget is presented in the table below:
|
Fund/Account |
Project No. |
Amount |
|
Capital Improvement Fund (310) |
|
|
|
Developer Contribution |
91814 |
$10,000,000 |
|
Tidelands Fund |
91814 |
$1,254,676 |
|
Base Reuse Fund |
91814 |
$2,350,000 |
|
|
|
|
|
Contractual Services |
91814 |
$13,604,676 |
Staff recommends that the City Council authorize amending the FY 2019-20 Budget for the Capital Projects Fund project 91814, Seaplane Lagoon Ferry Terminal, for the two recently approved grant allocations as presented below:
|
Fund/AccountProject No.Amount |
|
|
|
Capital Improvement Fund (310) |
|
|
|
Grant Revenue (ACTC) |
91814 |
$8,200,000 |
|
Grant Revenue (WETA) |
91814 |
$2,000,000 |
|
Contractual Services |
91814 |
$10,200,000 |
With the approval of the additional funding, the cumulative project budget will be $23,804,676.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The action is in conformance with the Alameda Municipal Code and all policy documents.
ENVIRONMENTAL REVIEW
There is no environmental impact associated with appropriation of funding to the Capital Improvement Plan (CIP) Project.
CLIMATE IMPACTS
There are no climate impacts association with the appropriation of funding to the CIP Project.
RECOMMENDATION
Adopt a Resolution amending the Fiscal Year 2019-20 Capital Projects Fund Budget for the Seaplane Lagoon Ferry Terminal project by $10,200,000 funded by an $8,200,000 grant from Alameda County Transportation Commission and $2,000,000 grant from the Water Emergency Transportation Authority.
CITY MANAGER RECOMMENDATION
The City Manager concurs with the staff recommendation.
Respectfully Submitted,
Debbie Potter, Community Development Director
By,
Michelle Giles, Base Reuse Manager
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. 2018 Updated Ferry Terminal Plan
cc: Eric Levitt, City Manger