Title
Recommendation to Authorize the City Manager to Execute a First Amendment, Substantially in the Form of the Attached, to the Reimbursement Agreement for Estuary Park Access between the Successor Agency to the Community Improvement Commission, City of Alameda and Catellus Alameda Development, LLC; and
Adoption of Resolution Amending the Reimbursement Agreement for Estuary Park Access (“Agreement”), Substantially in the Form of the Attached, to Increase the $800,000.00 Budget by $85,000 for a Total of $885,000.00 as Authorized by Agreement Sections 2(A) and (B); Said Increase Shall be Allocated by the City from Its Fleet Industrial Supply Center (FISC) Lease Revenue Budget. [City Council and SACIC] (Community Development 24161823)
Body
To: Honorable Chair and Members of the Successor Agency to the Community Improvement Commission of the City of Alameda
Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
In July 2017, the City Council approved an amendment to the Bayport/Alameda Landing Master Plan for the final development phase of Alameda Landing north of Mitchell Avenue. That amendment requires the developer, Catellus Alameda Development, LLC (Catellus) to construct an access road to Estuary Park, located to the west of the project.
On March 20, 2018, as part of the Fiscal Year (FY) 2017-18 Mid-Year Budget update, the City Council appropriated $800,000 from the Base Reuse and FISC Lease Revenue budgets to accelerate construction of the access road ahead of the schedule. The Reimbursement Agreement (Exhibit 1) describes the terms and conditions under which the City will provide the funding to Catellus to construct the improvements. Catellus will then reimburse the City up to $615,258 for road construction costs (Base Road Work), provided the two remaining residential parcels have been sold, and the road is deemed complete by City staff. Costs for City-requested improvements, such as street lighting and bicycle and pedestrian paths (Road Upgrade Work), will be paid for by the City’s FISC Lease Revenue fund.
On April 26, 2021, Catellus notified the City that Road Upgrade Work actual costs were estimated to exceed the approved budget. Under the reimbursement agreement, City Council approval is required for any increase to the budget. Staff is recommending a budget increase of $85,000 to be funded by the FISC Fund. The road is now close to completion, with punchlist items remaining.
BACKGROUND
In July 2017, the City Council approved an amendment to the Bayport/Alameda Landing Master Plan for the final development phase of Alameda Landing north of Mitchell Avenue. In December 2017, the Successor Agency to the Community Improvement Commission (Successor Agency) conveyed approximately 17 acres to Catellus, who then sold the property to an affiliate of Bay Ship and Yacht (BSY) pursuant to a Disposition and Development Agreement (DDA) with the Successor Agency.
Under that DDA, Catellus is obligated to construct a service road to access Estuary Park from Mitchell Avenue. This road allows direct access to Estuary Park for existing Alameda Landing residents as well as future residents of the waterfront site and North Housing. Subsequently there was interest in accelerating construction of the access road. As a result, on March 20, 2018, City Council approved a mid-year budget adjustment to appropriate the $800,000 reimbursed to the City by Catellus for the construction of Stargell Avenue and demolition associated with a fire at the FISC for the construction of the Estuary Park access road. On February 5, 2019, City Council authorized the Interim City Manager to execute a reimbursement agreement between the Successor Agency, the City and Catellus.
The reimbursement agreement provides that Catellus will build the access road earlier than previously planned, which created some efficiencies. The City agreed to pay Catellus to construct the access road in an amount not to exceed the budget provided in the reimbursement agreement ($800,000). In addition, the agreement provides that Catellus will reimburse the City $615,258 as follows: 50% when the first residential parcel is sold by Catellus to a homebuilder and 50% when the second residential parcel is sold by Catellus to a homebuilder. The agreement anticipates that the City will recoup up to $615,258 in construction costs and have the benefit of the access road 12 to 18 months sooner than it would have otherwise.
At the time the reimbursement agreement was executed, additional City-requested Road Upgrade Work was estimated at $187,742, and included roadway lighting, bicycle and pedestrian facilities, and bioretention. Under the reimbursement agreement, the City and not Catellus was responsible for the cost of this Road Upgrade Work. Following the execution of the reimbursement agreement, the Recreation and Parks and Public Works Departments worked with Catellus’ engineer on the final design for the access road. The final design included additional light poles, fixtures and associated electrical facilities that caused the cost of the Road Upgrade Work to increase from the original estimate.
DISCUSSION
Pursuant to Section 2(a) of the reimbursement agreement, which states that in the event that construction costs are expected to exceed the Council-approved $800,000 the City shall request the additional funds necessary to complete the road from City Council. Staff is requesting that the Estuary Park access road construction budget be increased by $85,000, from $800,000 to $885,000.
This increase is due to an increase in quantity of light poles, fixtures and associate electrical facilities that are part of the Road Upgrade Work. As lighting is considered Road Upgrade Work, the additional expense does not qualify for reimbursement by Catellus to the City. Funding for Road Upgrade Work expenses will be funded by the FISC Fund. Road Upgrade Work was originally budgeted at $184,742 in the reimbursement agreement. With the increase in lighting costs, total project expenditures for Road Upgrade Work will be $259,742 and paid from the FISC Fund.
ALTERNATIVES
• Authorize the City Manager to execute a First Amendment to the Reimbursement Agreement and adopt a resolution increasing the Estuary Park access road budget by $85,000, from $800,000 to $885,000.
• Do not authorize the City manager to execute a First Amendment to the Reimbursement Agreement. Currently under the reimbursement agreement, neither Catellus nor the City have an obligation to pay the additional costs either. If the costs are not paid by the City, Catellus may elect to remove the additional lighting as a means of cost recovery. Staff would not recommend this as the lighting levels installed are required to meet lighting standards.
FINANCIAL IMPACT
There is no financial impact to the General Fund. The additional funding ($85,000) will be appropriated for this activity from the FISC Lease Revenue Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The first amendment to the reimbursement agreement is consistent with the Bayport/Alameda Landing Master Plan as amended and the Alameda Landing Commercial Development Agreement (DA) as clarified by the DA Operating Memorandum dated December 1, 2017.
ENVIRONMENTAL REVIEW
On December 5, 2006, the City Council certified the Final Environmental Impact Report for the Alameda Landing Mixed Use Development Project (a Supplement to the 2000 Catellus Mixed Use Development Project EIR) in accordance with the California Environmental Quality Act (CEQA) (State Clearinghouse #2006012091). The City has prepared several addenda to the 2006 SEIR.
On July 18, 2017, the City Council approved an Environmental Assessment of the Bayport/Alameda Landing Master Plan Amendment. The Environmental Assessment concluded that the Master Plan Amendment (provided that the traffic trip cap established by the Master Plan is maintained) would not generate any new, or substantially more severe, impacts than might be expected as compared to those identified in the 2006 SEIR.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute a First Amendment to the Reimbursement Agreement for Estuary Park Access, Substantially in the Form of the Attached, between the Successor Agency to the Community Improvement Commission, City of Alameda and Catellus Alameda Development, LLC, and adopt a resolution amending the Estuary Park Access budget from $800,000 up to $885,000.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval.
Respectfully submitted,
Lisa Maxwell, Community Development Director
By,
Louis Liss, Base Reuse Manager
Financial Impact section reviewed,
Annie To, Finance Director
Exhibits:
1. Reimbursement Agreement
2. First Amendment to Reimbursement Agreement
cc: Eric Levitt, City Manager