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Recommendation to Authorize the City Manager to Execute a Second Amendment for Five Years, in an Amount Not to Exceed $924,300, for a Total Compensation Not to Exceed $2,046,355, to Carlson, Barbee & Gibson, Inc. (CBG) for Civil Engineering Services to Replace Backbone Infrastructure in Alameda Point’s Reuse Area.
On February 4, 2014, the City certified the Alameda Point Final Environmental Impact Report (EIR) in compliance with the California Environmental Quality Act (CEQA) (State Clearinghouse No. 2013012043). 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 Master Infrastructure Plan (MIP), which included the Reuse Area. The proposed actions implement the Alameda Point Zoning Ordinance and MIP and do not present any substantial changes in the Alameda Point redevelopment project or circumstances thereunder, or new information of substantial importance that would necessitate further environmental review pursuant to Public Resources Code section 21166 and CEQA Guidelines sections 15162 to 15164. (Public Works 31041520)
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To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Backbone infrastructure is being replaced in Alameda Point’s Adaptive Reuse Area (Reuse Area) through the City of Alameda’s (City) Capital Improvement Program with funding from the sale of buildings in the Reuse Area. Currently, the City owns and is responsible for the Navy installed water distribution and other utilities at Alameda Point. These utilities are over 70 years old and in disrepair.
Pursuant to an agreement with the East Bay Municipal Utility District (EBMUD), the City is required to replace the water system in the Reuse Area in three defined phases. The obligation to undertake the water system replacement work in each phase is triggered by the sale of a building within that phase. On October 17, 2017, based on available and projected building sale revenue, the City Council awarded a contract to Carlson, Barbee & Gibson, Inc. (CBG) to design all three phases of the water system and all backbone infrastructure in only the first phase of the Reuse Area. On March 15, 2022, City Council awarded a construction contract to Andrew M. Jordan, Inc., DBA A&B Construction for a project that included all backbone infrastructure in Phase 1 and water only improvements in Phase 2. This work is underway now and anticipated to be complete in early 2024.
Staff recommends City Council approve a contract amendment with CBG in an amount not-to-exceed $924,300 to design backbone infrastructure improvements for Phase 2 and Phase 3. Having a fully designed project makes the City competitive for grant funding available now and expected to be available as part of the Infrastructure Investment and Jobs Act. As design can take multiple years, starting the design now also allows the City to move quickly into construction when building sale proceeds become available.
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 (MIP) for Alameda Point. The approved MIP provides the master plan for the phased replacement of all 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 Naval Air Station (NAS) Alameda Historic District in the Reuse Area. Buildings within the Reuse Area will be sold incrementally to private owners on a parcel-by-parcel basis. Upon receipt of funds from the sale of the properties within the Reuse Area, the City is overseeing the implementation of new infrastructure in the Reuse Area through its Capital Improvement Program.
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, because such property owners will not have access to EBMUD infrastructure and therefore will not be EBMUD customers until the EBMUD water system upgrades are complete. Until then, the City will continue to provide water to new owners through its existing water infrastructure and remain customer of record with EBMUD for newly-sold parcels in the Reuse Area.
The Agreement requires the City to build out the EBMUD water system in the Reuse Area in three phases, as shown below and in Exhibit C of the Agreement. Properties sold to date are located in Phases 1 and 2. Therefore, the water system in these phases must be replaced, including the Phase 1 water only portion, which brings EBMUD’s system into the Reuse Area from Main Street.
In compliance with the timelines in the Agreement, following the sale of buildings in Phases 1 and 2, the City posted a Request for Proposal (RFP) for Civil Engineering Services to Renew the Backbone Infrastructure in Alameda Point’s Reuse Area. On October 17, 2017, City Council awarded an agreement to CBG to design water improvements for the three Agreement phases and all backbone infrastructure in just Phase 1. All backbone infrastructure includes water, sewer, storm, joint trench, new complete streets, lighting and landscaping. On March 15, 2022, City Council awarded a construction contract to Andrew M. Jordan, Inc., DBA A&B Construction for all backbone infrastructure in Phase 1 and water only improvements in Phase 2. This work is underway now and anticipated to be complete in early 2024.
DISCUSSION
Design of backbone infrastructure requires extensive coordination with outside utilities and can take multiple years. Staff recommends moving forward with the design of the remaining backbone infrastructure improvements for Phase 2 and Phase 3. A fully designed project puts the City in a competitive position for a variety of grant funding and allows the City to move quickly into construction when building sale proceeds become available.
The RFP issued in 2017 reserved the City’s right to negotiate additional services with the selected firm. CBG has exceeded all service expectations and has been a great partner over the last 5 years. A First Amendment to the CBG contract was executed in June 2021 to extend the term of the contract through October 2023. Staff now recommends authorizing a Second Amendment to the contract to include design services for all remaining backbone infrastructure in Phases 2 and 3, totaling $924,300. The amendment also extends the contract term through 2028.
FINANCIAL IMPACT
City Council previously appropriated building sale proceeds from the Alameda Point/Base Reuse fund into the Capital Improvement Program. These appropriations are for the design and construction of the first construction project building backbone infrastructure in Alameda Point’s Reuse Area. Subsequently, as part of the fiscal year 2022-23 Mid-Year Budget Update, on February 21, 2023, City Council appropriated additional funds in the amount of $925,000 to the Capital Improvement Program for design services for all remaining backbone improvements in Phase 2 and Phase 3. There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
On February 4, 2014, the City certified the Alameda Point Final EIR in compliance with the California Environmental Quality Act (CEQA) (State Clearinghouse No. 2013012043). 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. The proposed actions implement the Alameda Point Zoning Ordinance and MIP and do not present any substantial changes in the Alameda Point redevelopment project or circumstances thereunder, or new information of substantial importance, that would necessitate further environmental review pursuant to Public Resources Code section 21166 and CEQA Guidelines sections 15162 to 15164.
RECOMMENDATION
Authorize the City Manager to execute a Second Amendment for five years, in an amount not-to-exceed $924,300, for a total compensation not-to-exceed $2,046,355, to CBG for civil engineering services to replace backbone infrastructure in Alameda Point’s Reuse Area.
Respectfully submitted,
Erin Smith, Public Works Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Alameda Point Reuse and Development Areas
2. Agreement with EBMUD
3. CBG 2nd Amendment
4. CBG 1st Amendment
5. CBG Agreement