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2005-01-05 ARRA PacketAGENDA Regular Meeting of the Governing Body of the Alameda Reuse and Redevelopment Authority Alameda City Hall Council Chamber, Room 390 2263 Santa Clara Avenue Alameda, CA 94501 . ROLL CALL 2. CONSENT CALENDAR Wednesday, January 5, 2005 Meeting will begin at 5:30 p.m. City Hall will open at 5:15 p.m. 2 -A. Recommendation to approve an amendment to Consultant Agreement with LFR Inc. for environmental consulting services at Alameda Point in the amount of $175,130 for a total agreement amount of $249,000. 2 -B. Recommendation to authorize the Executive Director to approve sublease(s) at Alameda Point. 3. PRESENTATIONIUpdate on Alameda Point Navy Negotiations and Land Use Planning. None. 4. REGULAR AGENDA ITEMS None. 5. ORAL REPORTS 5-A. oral report from APAC. 5 -B. Oral report from Member Matarrese, RAB representative. 6. ORAL COMMUNICATIONS, NON - AGENDA (PUBLIC COMMENT) (Any person may address the governing body in regard to any matter over which the governing body has jurisdiction that is not on the agenda.) 7. COMMUNICATIONS FROM THE GOVERNING BODY ARRA Agenda - January 5, 2005 Page 2 8. ADJOURNMENT TO CLOSED SESSION OF THE ARRA TO CONSIDER CONFERENCE WITH REAL PROPERTY NEGOTIATOR: 8-A. Property: Negotiating parties: Under negotiation: Alameda Naval Air Station ARRA and Navy Price and Terms Announcement of Action Taken in Closed Session, if any. 9. ADJOURNMENT This meeting will be cablecast live on channel 15. Notes ▪ Sign language interpreters will be available on request. Please contact the ARRA Secretary, Irma Frankel at 749 -5800 at least 72 hours before the meeting to request an interpreter. • Accessible seating for persons with disabilities (including those using wheelchairs) is available. • Minutes of the meeting are available in enlarged print. • Audio tapes of the meeting are available for review at the ARRA offices upon request. AMENDMENT TO AGREEMENT This Amendment of the Agreement, entered into this 15 day of January 2005, by and between ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY, a Joint Powers Authority (hereinafter referred to as " "), and LFR, Inc. , a California corporation, whose address 1900 Powell Street, 12,th Floor, Emeryville, CA 94608 (hereinafter referred to as "Consultant"), is made with reference to the following: • RECITALS: On September 1, 2004 an agreement was entered into by and between ARRA and Consultant (hereinafter "Agreement ") . ARRA and Consultant desire to modify the Agreement on the terms and conditions set forth herein. NOW, THEREFORE, it is mutually agreed by and between and undersigned parties as follows: 1. Paragraph 2 ( "Services to be Performed ") of the Agreement is modified to read as follows: "Consultant shall perform each and every service set forth in Exhibits "A" and "A-1" which are attached hereto and incorporated herein by this reference." 2. Paragraph 3 ( "Compensation to Consultant ") of the Agreement is modified to read as follows: "Consultant shall be compensated for services performed pursuant to this Agreement in the amount no to exceed $73,870.00 as set forth in Exhibit "B" and in the amount not to exceed $175,130.00 as set forth in Exhibit "B-1" which are attached hereto and incorporated herein by this reference. Payment shall be made within 30 days of 's receipt of Consultant's invoice by checks drawn on the treasury of the ." 3. Except as expressly modified herein, all other terms and covenants set forth in the Agreement shall remain the same and shall be in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this modification of Agreement to be executed on the day and year first above written. LFR, Inc. .;;W7-7( ,(777 By: LFR. Inc. December 2004 ALAMEDA REUSE & REDEVELOPMENT AUTHORITY Li SI-Q.,- 71 William C. Norton Interim Executive Director Page 1 of 2 Exhibit "A-1" CHANGE ORDER No. 1 LFR SERVICES TO BE PRERFORMED FOR THE PERIOD OCTOBER 1, 2004 -- JTJNE 30, 2005 ALAMEDA POINT LFR Project No. 001-09287-00 Phase 1: Develop Strategic and Tactical Conveyance Plan Task 1: Constraints Analysis and Master Plan Update The LFR Team will continue assisting ARRA and its consultants in evaluating and reviewing property conditions and constraints as they pertain to proposed land uses, property value, and conveyance strategies. Specifically, LFR will implement the following scope of work: • Perform peer reviews of the working versions of the proposed land use plan and provide comments regarding the potential physical, stakeholder, and technical environmental constraints relative to the proposed land uses; • Participate in weekly Conveyance Team and Land Use Team meetings (one each per week) to assist in resolving constraints and finalizing a proposed land use scenario; • Participate in meetings as requested with the ARRA representatives and the US Navy, Southwest Division in San Diego, to discuss various elements of the proposed land use Ian; p • Develop alternative mitigation strategies to address environmental constraints posed on the proposed land uses. Task 2: Prepare Drat Working Conveyance Strategies The LFR Team will work with the Conveyance Tearn to develop likely draft working conveyance strategies. The outcome of this Task will be a grouping of various conveyance schemes with a relative scoring of each scheme that characterizes the ability of the scheme to meet the goals, objectives, and constraints of the project. Specifically, LFR will implement the following scope of work: FR • Perform a decision analysis exercise aimed at compiling all of the conditions, constraints, and solutions into a comprehensive format organized to facilitate development and screening of various conveyance strategies; • Develop a phased approach to property conveyance taking into consideration development objectives and overall financial objectives of the project; • Assist in the preparation of a financial model to support funding of the environmental rernediation work to be completed to support development. • Preparation and delivery of a presentation to the Navy to present the key elements of ARRA's preferred conveyance scheme; • Assist ARRA in negotiating various conveyance terms with the regulatory agencies and the Navy; • Assist ARRA in preparing and reviewing the conveyance contract and related documents. Change Order No.1 EXHIBTF A:RCB Pagel of 1 11/30/04 Exhibit "B-1" CHANGE ORDER No. 1 LFR SERVICES TO BE PRERFORMED FOR THE PERIOD OCTOBER 1, 2004 — JANE 30, 2005 ALAMEDA POINT Compensation for services performed between October 1, 2004 — June 30, 2005 will be in accordance with the following: Task 1: Constraints Analysis and Master Plan Update Labor: $ 0 Expenses, Handling & Mark -up $ 0 Total Task 1: $ 0 Task 2: Prepare Draft Working Conveyance Strategies and Navy Negotiations Labor: $ 1 32,383 Expenses. Handling & Mark -up 47320 Total Task 2: 5175,130 Total Cost for Change Order No. 1 $175,130 Total Cost for Base Contract $ 73,870 Total Project Authorization $249,000 City of Alameda Inter - office Memorandum December 22, 2004 TO: Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority FROM: James M. Flint Executive Director RE: Recommendation to Approve an Amendment to Consultant Agreement with LFR Inc. for Environmental Consulting Services at Alameda Point in the Amount of $175,130 for a Total Agreement Amount of $249,000 BACKGROUND On February 6, 2004 the Alameda Redevelopment and Reuse Authority (ARRA) issued a Request for Qualifications (RFQ) for an environmental services consultant team to the advise and assist the ARRA on strategic and tactical issues related to the environmental remediation and conveyance of the former Alameda Naval Air Station (Alameda Point). The ARRA received four (4) Statements of Qualifications in response to the RFQ. Members of the Alameda Point Conveyance Team and an APCP representative reviewed the four proposals and selected three (3) firms for interviews. On April 8, 2004, the top three firms were interviewed. Based upon the interviews, there was unanimous agreement that the LFR Inc. team was significantly more qualified and better prepared to provide the necessary services than the other two firms interviewed. The Alameda Point Project Team identified LFR. Inc. as the preferred land use consultant for the following reasons: 1) Based on the previous work of the LFR. Inc. team at Alameda Point, the team has a superior understanding of the environmental condition of the property and the issues affecting redevelopment. 2) The LFR Inc. team showed a greater understanding of the integration of the enviromnnental remediation program and the land use planning effort, as well as the sensitivities of the Navy conveyance process, and the need to carefully coordinate the efforts. 3) LFR Inc. demonstrated superior knowledge of the internal structure of the Navy's organization responsible for remedial decisions and implementation of those decisions. 4) The team demonstrated creative ideas for conveyance strategies that may be applicable to Alameda Point. Dedicated to Excellence, Committed to Service Honorable Chair and Members of the December 22, 2004 Alameda Reuse and Redevelopment Authority Page 2 DISCUSSION Upon conclusion of the selection process, staff recommended that the Executive Director execute an interim contract with LFR Inc. to employ their expertise in support of ongoing Navy negotiations. The interim contract allowed LFR to provide immediate support to the Conveyance Team's ongoing discussions with the Navy and provided time for LFR and the project team to completely assess the technical support that will be needed to support the development of the land use plan and the conveyance strategy with the Navy The LFR team will continue assisting ARRA and its consultants in evaluating and reviewing property conditions and constraints as they pertain to proposed land uses, property value, and conveyance strategies for the Preliminary Development Concept (PDC). LFR Inc. has performed peer review of the working versions of the proposed land use plan to identify potential physical, stakeholder /regulator, and technical environmental constraints relative to the proposed land uses. In order to assist in resolving constraints and finalizing a proposed land use scenario, LFR Inc. will continue to participate in the weekly Conveyance Team and Land Use Team meetings. LFR will also continue to participate in meetings between ARRA representatives and the US Navy as requested. The second phase of LFR's work is to assist the Conveyance Team in developing potential conveyance strategies. The outcome of this task will be various conveyance scenarios with a relative scoring of each scenario that characterizes the ability of the scenario to meet the goals, objectives, and constraints of the project. Specifically, LFR will implement the following scope of work: ■ Perform a decision analysis exercise to compile all of the conditions, constraints, and solutions into a comprehensive format organized to facilitate development and screening of various conveyance strategies; Develop a phased approach to property conveyance taking into consideration development objectives and overall financial objectives of the project; ▪ Assist in the preparation of a financial model to support possible funding of the environmental remediation work to be completed; Prepare and deliver a presentation to the Navy on the key elements of the ARRKs preferred conveyance strategy; Assist ARRA in negotiating various conveyance terns with the regulatory agencies and the Navy; and Assist ARRA in preparing the conveyance contract and related documents. The added services of LFR, Inc. will provide the necessary technical expertise to the City's team and enable the ARRA Board to meet its objectives as outlined in the CAA to complete a Preliminary Development Concept and transportation program for Alameda Point and to develop a conveyance strategy by June 2005. Dedicated to Excellence, Committed to Service Honorable Chair and Members of the December 22, 2004 Alameda Reuse and Redevelopment Authority Page 3 FISCAL IMPACT The proposed amendment adds $175,130 to LFR's agreement for a total contract amount of $249,000. This amount is less than the preliminary budget presented to the ARRA Board for supplementary environmental services for Alameda Point. The funds are currently available and set aside for these activities through bond funds secured by Alameda Point lease revenues to fund the ARRA led pre - development period planning activities contemplated under the CAA. RECOMMENDATION The Executive Director recommends that the ARRA Board approve an amendment to consultant agreement with LFR Inc. for environmental consulting services at Alameda Point in the amount of $175,130 for a total agreement amount of $249,000. Re ully submitted, LL /SP Leslie Little Development Services Director By: Stephen Proud Alameda Point Project Manager Contract amendment is on file in the City Clerk's office. Dedicated to Excellence, Committed to Service Alameda Reuse and Redevelopment Authority Interoffice Memorandum December 28, 2004 TO: Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority FROM: Jim Flint, Executive Director RE: Recommendation to authorize the Executive Director to approve sublease(s) at Alameda Point BACKGROUND At the December 16, 2004 Special ARRA Board Meeting, the ARRA elected to review and approve all subleases at Alameda Point. DISCUSSION Attachment "A" describes the business terms for the proposed sublease(s). FISCAL IMPACT The rent for: Building 43 & Assoc. $42,840 annually or $0.34 per square foot. Woodmasters $20,748 annually or $0.35 per square foot Antiques By The Bay $18,408 annually or $0.27 per square foot Hung Construction Co. $27,912 annually or S0.40 per square foot RECOMMENDATION The Executive Director recommends that the Alameda Reuse and Redevelopment Authority approve the proposed sublease(s). Leslie A. Little Development Services Director Stephen Proud 10, Alameda Point Project Manager By: Nanette Banks Finance Admin istration Manager Dedicated to Excellence, Committed to Service ATTACHEMENT "A" PROPOSED SUBLEASE BUSINESS TERMS TENANT BUILDING SIZE (SF) TERM RENT Building 43 & Associates 43 10,500 4 yrs $3,5701mo Woodmasters 44 4,941 4 yrs $1,729/mo Antiques by the Bay 459 5,684 1 yr + 1 yr* $1,534/mo Hung Construction Co. 459A 5,816 1 yr + 1 yr* $2,326 /mo Bold denotes revenue not included in FY 04/05 projections (new revenue). *The option period must be agreed to by both parties. Dedicated to Excellence, Committed to Service