Title
Recommendation to Adopt the 2020 Alameda Point Master Infrastructure Plan (MIP) Amendment and Direct Staff to Work with the Recreation and Park Commission on Recommendations Regarding the Alameda Point Sports Complex;
Introduction of Ordinance Amending the Alameda Municipal Code by Amending Chapter XXVII (Development Fees) by Repealing Section 27-4 (Alameda Point Development Impact Fees) in Its Entirety; and
Adoption of Resolution Amending Master Fee Resolution No. 12191 to Revise Fee. (Community Development)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The Alameda Point Master Infrastructure Plan (MIP) outlines a plan for new infrastructure at Alameda Point that replaces the antiquated Navy utilities that the City of Alameda (City) inherited. The new infrastructure systems established by the MIP include sea level rise protection and adaption measures, as well as new street improvements, protected bicycle facilities, and electrical and other system upgrades. Community benefit improvements, such as the Regional Sports Complex, Seaplane Lagoon Ferry Terminal, and a network of parks are also included in the MIP.
The MIP identified a process for future amendments of the document to reflect evolving requirements, best available science regarding sea level rise, and other advancements of the new infrastructure systems. The 2020 MIP Amendment (MIP Amendment) provides a summary of the current backbone infrastructure implemented to date, updates requirements or standards that have changed in the past five years, and conforms the infrastructure improvements called for in the MIP to the climate change resiliency guidance established through the Climate Action and Resiliency Plan (CARP) adopted by the City Council in September 2019. The MIP Amendment is attached as Exhibit 1.
The MIP also includes the estimated cost of the required infrastructure and community benefit improvements. These cost estimates are the basis for the Alameda Point Development Impact Fee (DIF). The Alameda Point DIF is based on a per acre calculation for residential and commercial land uses. The current DIF fee is $1.46 million an acre, based on a total infrastructure and community benefit improvements cost of $500 million. The MIP Amendment includes an updated cost estimate of $1.68 million an acre, or a total cost of $650 million, based on the updated infrastructure and community benefit requirements.
While the DIF has been in place for a number of years, staff is recommending that the ordinance authorizing the DIF be repealed and replaced with a “minimum land purchase price” concept, which will be equivalent to the per acre infrastructure cost included in the MIP as it may be updated from time to time. Along with introduction of an ordinance repealing the DIF, staff is recommending adoption of a resolution amending the City’s Master Fee Schedule to remove the Alameda Point DIF fee.
BACKGROUND
In 2014, the City Council approved the MIP. The MIP establishes the requirements and standards for new infrastructure systems at Alameda Point. The MIP presents a plan for new infrastructure systems, including new streets, flood and sea level rise protection, shoreline stabilization, geotechnical mitigations, and utilities. The MIP requires the replacement of the aging infrastructure and guides the infrastructure development over the coming decades as redevelopment occurs. The MIP specified a backbone framework of infrastructure systems that allow for the orderly implementation of new infrastructure while maintaining flexibility for different disposition and development scenarios.
Since the approval of the MIP, the City has advanced the development of backbone infrastructure within both the “New Development” and “Adaptive Reuse” areas. To date, approved new development and adaptive reuse projects have been implemented in a manner consistent with the MIP and have commenced the orderly replacement of the Navy’s aged infrastructure. There have been updated agreements executed with East Bay Municipal Utility District (EBMUD) and Pacific Gas and Electric (PG&E) to address the on-going maintenance and planned replacements of the historical Navy water and natural gas systems.
In September 2019, the City Council adopted the CARP, which outlines an approach for the City to reduce emissions and further commit to constructing infrastructure that enhances the City’s ability to manage the impacts of climate change and sea level rise. The CARP also called for an amendment to the MIP to incorporate the latest sea level rise projections and strategies.
Accordingly, a MIP Amendment has been prepared to provide a summary of the current backbone infrastructure implementation and update requirements or standards that have evolved in the past five years, as well as to be consistent with the climate change resiliency guidance established in the CARP. As part of the MIP Amendment, costs have also been updated based on actual costs to build new infrastructure over the past three years, new requirements, and revisions to existing infrastructure details and standards.
Staff is also recommending that the City Council repeal the Alameda Point DIF and amend the City’s Master Fee Schedule to remove the fee. This recommendation is discussed in more detail below.
DISCUSSION
MIP Amendment
The purpose of this MIP Amendment is provide a summary of the current backbone infrastructure implementation and update requirements that have evolved in the past five years and update the cost estimates accordingly. The following are key elements captured in the MIP Amendment:
Backbone Infrastructure Implementation as of 2019
Several development and adaptive reuse projects have commenced at Alameda Point that include backbone infrastructure improvements in accordance with the MIP. The MIP Amendment documents the components of infrastructure that are either completed to date or in process, and all associated projects, including the 27-acre Site A Phase 1 development project, construction of the Seaplane Lagoon ferry terminal, Building 8 joint trench, Adaptive Reuse Phase 1 & 2 Replacement Infrastructure, and the Site Management Plan (SMP) update.
Coordination with the CARP
Sea Level Rise Protection
The MIP utilized the best available science at the time it was adopted to establish the required minimum elevations to be achieved to provide built-in protection from future sea level rise. In 2018, the California Ocean Protection Council (OPC) published an update to its prior sea level rise guidance. The CARP outlines plans for the City’s shoreline future based on the current California OPC’s sea level rise guidance and projections. The CARP describes shoreline improvements that are based on projections associated with the “medium-high risk aversion” and the higher Green House Gas (GHG) emissions scenarios, which are summarized as follows:
• Mean Higher High Water + approximately 24-inches of sea level rise by 2050, and
• Mean Higher High Water + 71-inches to 83-inches of sea level rise by 2100.
In order to align the MIP with the CARP, the MIP Amendment updates MIP Site Grading Design Criteria, providing the higher minimum required elevations within Alameda Point to achieve the level of protection of buildings, critical services, land uses, shoreline and recreation areas, and transportation facilities as targeted in the CARP.
Emergent Ground Water
The CARP identifies the need to consider impacts of sea level rise on groundwater. As sea levels rise, groundwater will rise, increasing the potential for groundwater to emerge, in turn increasing the potential for flooding or for contaminants to migrate. The MIP Amendment incorporates measures to be implemented with new backbone infrastructure construction to minimize the potential flooding impact of rising groundwater. It also suggests that additional long-term adaptive measures, such as a perimeter cut-off wall or a groundwater pumping system, be incorporated into the Alameda Point long-term adaptive management strategies to address groundwater rise.
Managed Shoreline Adaption
The MIP outlined potential locations for managed shoreline adaption and transformation of large paved areas into tidal wetlands, marshes and coastal open spaces that support a sustainable ecology and create new wildlife habitat with an additional co-benefit of carbon sequestration. The areas identified in the MIP included the Northwest Territories and the area along the west shoreline of Seaplane Lagoon. The CARP highlighted the importance of these opportunities and presented an additional concept for conversion of the airfield areas into an expansive Nature Reserve, which has been incorporated to the MIP Amendment.
Main Street Adaption
The MIP Amendment incorporates a process for the staged implementation of final Main Street Improvements. This allows initial improvements to be completed in stages and defers raising the elevation of Main Street, as it is anticipated that the Alameda Point shoreline protection measures can be integrated into other shoreline protection measures to the east of Alameda Point, as identified in the CARP. This would eliminate the need for Main Street to be elevated as it would be interior to the shoreline protection measures.
Emission Reduction Actions
The CARP outlines GHG emission reduction actions to achieve the City’s emission reduction goals and net zero GHG emissions as soon as possible. Many of the GHG reduction actions had already been integrated into the project requirements for the redevelopment of Alameda Point and the MIP. These primarily include actions designed to shift modes of transportation, such as construction of the extensive bicycle and transit networks outlined in the MIP. The CARP included additional actions that relate to the Alameda Point backbone infrastructure planning and requirements and, accordingly, are included in this MIP Amendment. These include increased availability of electric vehicle (EV) charging stations citywide, “Fuel Switch” in existing buildings, electrification of new residential construction, and green roof installations on new developments at Alameda Point
Adaptive Reuse Street Sections Adopted by the Transportation Commission in 2019
The MIP recognized that flexibility in the final street section design was necessary to complement adjacent development. In the past five years, each approved Development Plan or adopted Specific/Precise Plan within Alameda Point has included minor adjustments to the street sections within those areas. Additionally, in 2019, the Transportation Commission reviewed and approved updates to the street sections within the Adaptive Reuse areas in support of the City’s Reuse Area Infrastructure Replacement Project. The MIP Amendment reflects the updated street sections and bike facilities approved through recently approved Development Plans and adopted Specific/Precise Plans and located within the Adaptive Reuse areas.
Transit Systems Based on Current City-Wide Transportation Planning and Completed or Funded Facilities
The City has established a Transportation Demand Management Program (TDMP) for Alameda Point, which includes the associated funding sources through a Community Facilities District (CFD), and a fee paid by existing commercial tenants who are not located within the CFD. The Alameda Transportation Management Association (TMA) implements the TDMP which over time will include transit strategies and demand management programs to reduce congestion, reduce vehicle miles traveled and provide an effective transit system for Alameda Point. With the TMA in place and operating, other transit strategies contemplated in the MIP as potential ideas for Alameda Point, such as a transit center or off-site street and intersection improvements, are no longer needed and are thus not included in the MIP Amendment.
Parks and Open Space to Incorporate De-Pave Park and Coordinate with Other Recently Constructed City Parks and Trails
In coordination with the CARP and the Town Center and Waterfront Precise Plan, the MIP Amendment incorporates De-Pave Park located along the west shoreline of Seaplane Lagoon. The addition of De-Pave Park will enhance the open space network and managed shoreline adaption as sea levels rise.
Backbone Sanitary Sewer System Configuration as Implemented by Site A
The Site A Phase 1 development included the construction of key components of the backbone sanitary sewer system. As part of implementing these sanitary sewer system components, the City coordinated value engineering efforts with the Site A development team. Through these efforts, the backbone sanitary sewer system reflected in the MIP was modified to replace six planned lift stations with four planned pump stations, reducing the overall sewer lift / pump stations by two. The MIP Amendment captures these optimizations.
Potable Water System Implementation in Coordination with EBMUD
The MIP provided a plan and outlined implementation of a phased replacement of all of the Navy’s outdated and substandard infrastructure, including the water system at Alameda Point. In 2017, the City and EBMUD entered into a Ten-Year Water Infrastructure Agreement regarding Alameda Point. This agreement outlines a process and timelines for the City and EBMUD to work together to extend new water mains to the Reuse Areas. The requirements of this agreement have been incorporated into the MIP Amendment.
Electrical System Implementation in Coordination with Alameda Municipal Power (AMP) and Electrification Considerations from the CARP
As noted above, the CARP requires GHG emission reduction actions that will be implemented within Alameda Point. A number of these actions result in increased demands on the electrical system. The MIP Amendment provides the estimated total electric demands to account for these new requirements. To address the increased electric demands forecasted, the MIP Amendment includes upgrades to AMP’s Cartwright Substation.
Natural Gas System Replacement in Coordination with PG&E
The MIP specified that a new gas system would be installed throughout the backbone infrastructure framework. With the objectives of the CARP, the MIP Amendment documents that the extent of the new natural gas system may be reduced as GHG emission reduction actions are implemented and the demand for and use of natural gas are decreased at Alameda Point.
Updated Construction Cost Estimates for the Remaining Backbone Infrastructure to be Completed
The backbone infrastructure cost estimate has been updated to reflect the items discussed above and addressed in this MIP Amendment. The improvements that have been constructed, or are already planned and funded as part of the active projects discussed in the MIP Amendment, have been removed from the cost estimate. Therefore, the revised cost estimate only includes the backbone infrastructure still to be implemented and constructed. The cost estimate has been updated to reflect 2020 construction costs. The notable site-wide infrastructure costs and community benefit improvements included in the cost estimate update are summarize in Exhibit 2. This summary includes infrastructure items that were included in the MIP and items that have been added as part of the MIP Amendment (and in some cases removed in the MIP Amendment). All of the remaining infrastructure and community benefit projects reflect cost updates (if previously included) or the cost of the additional/revised improvements described above. The total backbone infrastructure cost is now estimated at approximately $650 million, this is an increase of $150 million from the $500 million original 2014 cost estimate.
Sports Complex
While the Sports Complex continues to be included in the MIP Amendment, staff recommends that the City Council direct the Recreation and Park Commission to revisit the sports complex and whether or not the sports complex as envisioned over the past 20 years is still the recreation amenity that best meets the community’s needs. The estimated cost of the Sports Complex continues to grow and now stands at $52 million. It is unclear whether, or when, sufficient funds will be generated to in a manner that will feasibly allow construction of the complex. Therefore, staff believes that the community would benefit from an updated process led by the Recreation and Park staff and its Commission to study the concept and make a recommendation to City Council regarding next steps.
All other components of the MIP not included or discussed within this MIP Amendment remain effective.
Repeal the Alameda Point DIF and Amend the City’s Master Fee Schedule to Remove the Fee
In 2014, as part of the entitlement process for Alameda Point, the City Council adopted an ordinance establishing an Alameda Point DIF. The DIF was tied to the MIP in that the MIP provided the nexus study and required analysis to establish the fees charged to pay for the backbone infrastructure and community benefits included in MIP. Staff has concluded that because Alameda Point property with few exceptions is City-owned land, it is more appropriate to link the cost of required infrastructure and community benefits to a “minimum land purchase price” rather than a DIF. As a result, staff is recommending that the ordinance establishing the Alameda Point DIF be repealed and the resolution be adopted removing the fee from the City’s Master Fee Schedule.
ALTERNATIVES
• Adopt the 2020 MIP Amendment, as described above, and direct staff to revise the Alameda Point DIF to reflect the updated cost estimate included in the MIP Amendment. This alternative includes directing the Recreation and Park Commission to revisit the Sports Complex and report back to the City Council with its recommendations.
• Introduce an ordinance repealing the Alameda Point DIF and adopt a resolution deleting the fee from the City’s Master Fee Schedule.
• Adopt the MIP Amendment and incorporate any revisions, as directed by Council, including a different approach to studying the Sports Complex.
• Decline to adopt the MIP Amendment and provide direction to staff about further revisions to the proposed MIP Amendment.
• Decline to adopt the MIP Amendment and continue to rely on the MIP pending a potential MIP amendment in the future.
• Decline to repeal the DIF.
FINANCIAL IMPACT
There is no financial impact to the City’s General Fund by approving the MIP Amendment or repealing the Alameda Point DIF. Funds for the required infrastructure and community benefits will be generated through a “minimum land purchase price” paid by developers.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The MIP Amendment has been prepared in a manner consistent with the intent of the original MIP that anticipated periodic updates over the course of redeveloping Alameda Point. The MIP Amendment is also consistent with the recently adopted CARP.
ENVIRONAMENTAL REVIEW
On February 4, 2014, the City certified the Alameda Point Final Environmental Impact Report (EIR) in compliance with the California Environmental Quality Act (CEQA). The Final EIR evaluated the environmental impacts associated with the new infrastructure systems and requirements outlined in the MIP. Pursuant to CEQA Guidelines Section 15162, no subsequent environmental review shall be required when, as here, an EIR has been certified for a project unless certain events have occurred. As explained below, none of the conditions specified in CEQA Guidelines Section 15162 requiring subsequent or supplemental environmental analysis have occurred; therefore, no new environmental analysis is required to comply with CEQA.
Specifically, the MIP Amendment does not include any substantial changes associated with the infrastructure systems and requirements outlined in the MIP, and there is no evidence in the record that the MIP Amendment would result in new significant environmental effects or a substantial increase in the severity of previously identified significant effects necessitating major revisions to the EIR. Finally, there is no new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was certified, in the record that shows new or considerable different significant effects, mitigation measures, or alternatives than were analyzed in the EIR.
Because no new effects could occur or no new mitigation measures would be required under CEQA Guidelines Section 15162, CEQA Guidelines Section 15168(c)(2) permits the approval of the MIP Amendment as an activity within the scope of the EIR, and no new environmental document is required.
None of the changes proposed by the MIP Amendment change the overall amount of development and therefore, no further review is required for the MIP Amendment.
Additionally, the City certified a Mitigated Negative Declaration (MND) in 2019, which considered the potential environmental impacts of the CARP including the potential impacts of future actions by the City to make physical changes to existing structures and facilities to reduce GHG emissions or address sea level rise. The MND finds that some construction activities may result in some potentially significant impacts, but that all the potential impacts can be mitigated to a level of less than significant through standard construction mitigations.
Adoption of an ordinance repealing the Alameda Point DIF in its entirety and adopting of a resolution deleting the fee from the Master Fee Schedule are exempt from review under CEQA pursuant to the following, each a separate and independent basis: CEQA Guidelines, Section 15378 (not a project) and Section 15061(b)(3) (no significant environmental impact).
CLIMATE IMPACTS
Adoption of the MIP Amendment has a beneficial impact on the climate as one of its main goals is to update the MIP to incorporate all of the resiliency and adaptation measures identified in the CARP for development at Alameda Point. The MIP Amendment includes sea level rise protection and adaption measures, strategies for reducing GHG emissions, and addressing emergent ground water.
RECOMMENDATION
It is recommended that the City Council:
1. Adopt the 2020 Alameda Point Master Infrastructure Plan Amendment and Direct Staff to Work with the Recreation and Park Commission on Recommendations Regarding the Alameda Point Sports Complex;
2. Introduce an Ordinance Amending the Alameda Municipal Code by Amending Chapter XXVII (Development Fees) by Repealing Section 27-4 (Alameda Point Development Impact Fees) in its Entirety; and
3. Adopt a Resolution Amending Master Fee Resolution No. 12191 to Revise Fee.
CITY MANAGER RECOMMENDATION
The City Manager concurs with the Community Development Director’s recommendation.
Respectfully submitted,
Debbie Potter, Community Development Director
Financial Impact section reviewed,
Nancy Bronstein, Human Resources Director and Interim Finance Director
Exhibits:
1. MIP Amendment
2. Summary of Site-Wide Infrastructure and Community Benefits