Title
Recommendation to Authorize the City Manager to Execute a Second Amendment, Substantially in the Form of the Attached Amendment, to the Short Term Maintenance Agreement with East Bay Municipal Utility District for Alameda Point Water System Services.
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 of redevelopment and reuse of the lands at Alameda Point consistent with the Alameda Point Zoning Ordinance and MIP, which included the Reuse Area. Such impacts include any potential impacts arising from the routine and ongoing infrastructure maintenance covered by the Short Term Maintenance Agreement. On a separate and independent basis, this action is exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities), 15302 (Replacement or Reconstruction), and 15304 (Minor Alterations to Land). (Public Works 31041500)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Prior to the closure of the former Naval Air Station (NAS) Alameda, the United States Navy (Navy) designed, owned, and operated the potable water system at Alameda Point (Alameda Point Water System). East Bay Municipal Utility District (EBMUD) provides operational and regulatory support services for the Alameda Point Water System, pursuant to a Short Term Maintenance Agreement with the City of Alameda (City). This agreement expired on June 14, 2022. The proposed amendment retroactively extends the term from June 14, 2022, through June 14, 2027. The amendment also allows term extension beyond 2027 premised on an agreed plan and timeline for the continued redevelopment at Alameda Point. This agreed plan and timeline will ultimately be codified in an amendment to the Water Infrastructure Agreement with EBMUD, which will be brought back for City Council consideration at a later date. EBMUD agreed to extend the Short Term Maintenance Agreement beyond 2027 in exchange for the City providing a designated location for their stockpiling of soil related to operation of EBMUD-owned facilities at Alameda Point. The September 30, 2022 Alameda Point Site Management Plan (SMP), requires soil excavated at Alameda Point to be characterized on site before hauling off of Alameda Point, therefore EBMUD requires a location to do so. The proposed amendment allows EBMUD to deposit soil in designated bins at a City yard with the City handling and hauling the spoils in accordance with the SMP at EBMUD’s expense.
The City and EBMUD continue to work collaboratively at Alameda Point and staff recommends City Council approve this proposed second amendment to the Short Term Agreement.
BACKGROUND
Prior to closure of the former NAS Alameda, the Navy designed, owned and operated the Alameda Point Water System. Water was supplied to the Alameda Point Water System by EBMUD through master meters located on the perimeter of the Naval Air Station. The Alameda Point Water System was neither built nor maintained to the standards of EBMUD.
On May 2, 1997, in anticipation of the base closure and City responsibilities under the base Caretaker Cooperative Agreement, executed on March 31, 1997, EBMUD and the City entered into a Joint Exercise of Powers Agreement (JPA) under which EBMUD agreed to provide services to assist in operating the Alameda Point Water System and complying with the system’s Division of Drinking Water permit.
On February 4, 2014, upon acquisition of major portions of Alameda Point from the Navy, City Council approved the necessary planning documents for the redevelopment of Alameda Point, including the Master Infrastructure Plan for Alameda Point (MIP). The approved MIP provides the master plan for the phased replacement of all of 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 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 logical implementation of new Reuse Area infrastructure through its Capital Improvement Program.
Through a series of modifications and extensions, the JPA was continued through March 31, 2017. On April 23, 2017, the City and EBMUD entered into a Short Term Maintenance Agreement for six months until issues surrounding implementing new water infrastructure in the Reuse Area were resolved and codified in a Water Infrastructure Agreement, adopted by City Council June 6, 2017 (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. The Water Infrastructure 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 the customer of record with EBMUD for newly-sold parcels in the Reuse Area.
The Water Infrastructure Agreement also allowed that if the City transferred fee title to a private owner in the Reuse Area prior to the expiration of the Short Term Maintenance Agreement (October 23, 2017), the term of the maintenance agreement would extend five years. The Water Infrastructure Agreement further allows that if the City sells another parcel in a different phase within the Reuse Area, the Short Term Maintenance Agreement can be extended for an additional five years. The Water Infrastructure Agreement states that EBMUD will cease to provide maintenance services at Alameda Point after this ten-year period, or 2027.
The Water Infrastructure 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 in Exhibit 2. When Building 91, located in Phase 1 of the Reuse Area, was sold, this extended the term of the Short Term Agreement to June 14, 2022. Although Building 23, located in Phase 2, sold in 2018, a second amendment extending the term of the maintenance agreement through June 14, 2027, has not been executed and is the subject of tonight’s discussion.
Reuse Area Phasing
DISCUSSION
The proposed second amendment to the Short Term Maintenance Agreement retroactively extends the term for five years, commencing on June 14, 2022, and expiring on June 14, 2027. Although the City is methodically redeveloping Alameda Point and has made progress on abandoning the Alameda Point Water System, complete abandonment of the system will not be finished by 2027. The proposed amendment therefore also allows the term to be extended beyond 2027, premised on an agreed plan and timeline for the continued redevelopment at Alameda Point. This agreed plan and timeline will ultimately be codified in an amendment to paragraph 39 of the Water Infrastructure Agreement. Staff did not bring that amendment forward at this time as further internal consideration and discussion with EBMUD are required.
EBMUD agreed to extend the term of the Short Term Maintenance Agreement beyond 2027 in exchange for the City providing a designated location, as required EBMUD to stockpile soil related to operations of their owned facilities at Alameda Point. The proposed amendment allows EBMUD to deposit soil in designated bins at a City yard with the City handling and hauling the spoils in accordance with the SMP at EBMUD’s expense.
The City and EBMUD continue to work collaboratively at Alameda Point and staff recommends City Council approve this proposed second amendment to the Short Term Agreement.
ALTERNATIVES
• Approve the proposed second amendment to the Short Term Maintenance Agreement.
• Recommend changes to the proposed amendment before approval.
• Do not approve the proposed second amendment and direct staff to seek another provider of these services. This will require consult with the Division of Drinking Water as the Alameda Point Water System’s permit states EBMUD is the provider of service.
FINANCIAL IMPACT
The City will pay EBMUD for its actual costs to provide services as specified in the Short-Term Maintenance Agreement. The routine maintenance costs will be limited to $10,000 per month or less. The emergency services will be subject to $40,000 per repair event unless the City provides oral and then written approval to go over this amount. The City will invoice EBMUD for costs incurred handling spoils related to work on EBMUD owned facilities. An annual expenditure budget is appropriated each year in the Alameda Point Fund. 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). 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. Such impacts include any potential impacts arising from the routine and ongoing infrastructure maintenance covered by the Short Term Maintenance Agreement. On a separate and independent basis, this action is exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities), 15302 (Replacement or Reconstruction), and 15304 (Minor Alterations to Land).
CLIMATE IMPACT
Although this Short Term Maintenance Agreement has no direct climate impacts, the redevelopment of Alameda Point includes construction of complete streets, which include capture and treatment of 100% of the stormwater runoff and provides for safe multi-modal travel.
RECOMMENDATION
Authorize the City Manager to execute a Second Amendment, substantially in the form of the attached amendment, to the Short Term Maintenance Agreement with East Bay Municipal Utility District for Alameda Point Water System services
Respectfully submitted,
Erin Smith, Public Works Director
By,
Erin Smith, Public Works Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Alameda Point Reuse and Development Areas
2. Water Infrastructure Agreement with EBMUD
3. Short-Term Maintenance Agreement with First Amendment
4. Proposed Second Amendment to Short-Term Maintenance Agreement