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2009-07-07 ARRA PacketAGENDA Special 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 1. ROLL CALL 2. CONSENT CALENDAR Tuesday, July 7, 2009 Meeting will begin at 7:29 p.m. Consent Calendar items are considered routine and will be enacted, approved or adopted by one motion unless a request for removal for discussion or explanation is received from the Board or a member of the public. 2-A. Approve the minutes of the Regular Meeting of June 3, 2009. 2-B. Authorize Negotiation and Execution of a Sublease for Vigor Marine, LLC at Alameda Point. 2-C. Authorize Negotiation and Execution of a Sublease Renewal for Bay Ship & Yacht Co., Inc. at Alameda Point. 2-D. Authorize Negotiation and Execution of a Sublease Renewal for Puglia Engineering of California, Inc. at Alameda Point. 3. REGULAR AGENDA ITEMS None. 4. ORAL REPORTS 4-A. Oral report from Member Matarrese, Restoration Advisory Board (RAB) representative - Highlights of June 4 Alameda Point RAB Meeting. 5. 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.) 6. COMMUNICATIONS FROM THE GOVERNING BODY 7. ADJOURNMENT ARRA Agenda - July 7, 2009 Page 2 This meeting will be cablecast live on channel 15. Notes: • Sign language interpreters will be available on request. Please contact the ARRA Secretary 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. APPROVED MINUTES OF THE REGULAR MEETING OF THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesday, June 3, 2009 The meeting convened at 7:34 p.m. with Chair Johnson presiding. 1. ROLL CALL Present: Chair Beverly Johnson Boardmember Lena Tam Boardmember Frank Matarrese Boardmember Marie Gilmore Vice Chair Doug deHaan 2. CONSENT CALENDAR 2 -A. Approve the minutes of the Special Meeting of May 19, 2009. 2 -B. Authorize Negotiation and Execution of a Sublease Renewal for Alameda Municipal Power at Alameda Point. 2 -C. Authorize Negotiation and Execution of a Sublease for NRC Environmental Services at Alameda Point. 2 -D. Authorize Negotiation and Execution of a Sublease Renewal for Piedmont Youth Soccer Club at Alameda Point. 2 -E. Authorize Negotiation and Execution of a Sublease Renewal for SF Tom's Sales at Alameda Point. Item 2 -D was pulled by staff. The balance of the Consent Calendar was motioned for approval by Vice Chair deHaan, seconded by Member Matarrese and passed by the following voice votes: Ayes: 5, Noes: 0, Abstentions: 0 3. REGULAR AGENDA ITEMS 3 -A. Alameda Point Update - Presentation of Navy's Environmental Remediation Levels and SunCal's Land Plan Debbie Potter, Base Reuse and Community Development Manager, provided a presentation of the Navy's Environmental Remediation clean up as a follow up to the ARRA Board's request. Member Matarrese commented that the Navy's original clean up plan was made in concert with the 1996 Community Reuse Plan. Ms. Potter affirmed and explained that the Navy has agreed to clean up to the land uses anticipated in the PDC, occurring at a higher level. Vice Chair deHaan was concerned that the Navy will clean up to commercial use only, and if the developer wanted to clean to residential level, there are more costs involved. He asked staff where he could find that information. Ms. Potter explained that the Proforma does include a line item for additional remediation work that SunCal will have to undertake post conveyance. Dr. Peter Russell, ARRA's environmental consultant, addressed the questions from the Board regarding the various sites and clean up levels. Chair Johnson asked staff to confirm whether or not the Navy and SunCal has had direct dialogue regarding the clean up levels. Ms Potter explained that although there has been direct discussion between staff, the Navy, SunCal and various environmental agencies, the Navy has not committed to do clean up in sync with SunCal's land plan, because neither the ARRA or the City has taken any official action regarding that plan — so it is still just a "plan ". This item was provided for information only. No action was taken. 4. ORAL REPORTS 4 -A. Oral report from Member Matarrese, Restoration Advisory Board (RAB) representative - Highlights of May 7th Alameda Point RAB Meeting. Member Matarrese will provide handouts from the meeting to be distributed. Mr. Brooks, the Navy's chair, attended the meeting and summarized all the open activities at the Point and stated that the Navy is working up a contract to adjust the radioactivity that was found on the shore of the seaplane lagoon. There was a presentation on Site 24 which is the area in the seaplane lagoon by the outfall near piers 1, 2, and 3. The RAB had spirited discussion around the sediment and how deep the Navy intends to remediate. The next meeting is June 4th 5. ORAL COMMUNICATIONS, NON - AGENDA (PUBLIC COMMENT) There were no speakers. 6. COMMUNICATIONS FROM THE GOVERNING BODY None. 7. ADJOURNMENT Meeting was adjourned at 7:52 p.m., by Chair Johnson, with a moment of silence in honor and memory of James Little. Respectfully submitted, rma Glidden ARRA Secretary Oat,,___ Alameda Reuse and Redevelopment Authority Memorandum To: Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority From: Ann Marie Gallant Interim Executive Director Date: July 7, 2009 Re: Authorize Negotiation and Execution of a Sublease for Vigor Marine, LLC at Alameda Point BACKGROUND The Alameda Reuse and Redevelopment Authority (ARRA) governing Board approves all Alameda Point subleases with a lease term greater than one year. The proposed sublease for Vigor Marine, LLC is three years. DISCUSSION Attachment A describes the business terms for the proposed sublease for Vigor Marine, LLC in a portion of Building 20. The rent for Vigor Marine, LLC in a portion of Building 20 is $157,320 annually, or $0.40 per sq. ft. with a three - percent increase in the second and third years of the lease. The leased premises will be used for light industrial work, including ship repair, machinery repair, fabrication, and welding. Building 20 is in fair condition. In accordance with the Exclusive Negotiating Agreement between the ARRA and SunCal Companies, this lease has been discussed with representatives from SunCal Companies and has their concurrence. FINANCIAL IMPACT This lease will generate $157,320 in the first year. These funds will be retained by the ARRA. RECOMMENDATION Authorize negotiation and execution of a sublease for Vigor Marine, LLC at Alameda Point. ARRA Agenda Item #2 -B 07 -07 -09 Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority Respectfully submitted Leslie Little Development Services Director By: Nanette Banks Mocanu Finance and Administration Manager Attachment: A. Proposed Sublease Business Terms B. Site Map ATTACHMENT A PROPOSED SUBLEASE BUSINESS TERMS TENANT BUILDING SIZE (SF) TERM RENT Vigor Marine, LLC 20 32,775 3 yrs $32,775/mo. ARRA Attachment A to Agenda Item #2 -B 07 -07 -09 ATTACHMENT B n cD 0 L _CD r I r 0 LI 1 ' 1 ARRA Attachment B to Agenda Item #2-B 07-07-09 Alameda Reuse and Redevelopment Authority Memorandum 2 -C To: Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority From: Ann Marie Gallant Interim Executive Director Date: July 7, 2009 Re: Authorize Negotiation and Execution of a Sublease Renewal for Bay Ship & Yacht Co., Inc. at Alameda Point BACKGROUND The Alameda Reuse and Redevelopment Authority (ARRA) governing Board approves all Alameda Point subleases with a lease term greater than one year. The proposed sublease for Bay Ship & Yacht Co., Inc. is two years. DISCUSSION Bay Ship & Yacht Co., Inc. has occupied Building 292 at Alameda Point for the past 12 years. This building is used for general office activities, shop and storage of equipment. Attachment A describes the business terms for the proposed sublease for Bay Ship & Yacht Co., Inc. in Building 292. The rent for Bay Ship & Yacht Co., Inc. in Building 292 is $13,548 annually, or $0.4181 per sq. ft. with a three - percent increase in the second year of the lease. Building 292 is in poor condition. In accordance with the Exclusive Negotiating Agreement between the ARRA and SunCal Companies, this lease has been discussed with representatives from SunCal Companies and has their concurrence. FINANCIAL IMPACT This lease will generate $13,548 in the first year. These funds will be retained by the ARRA. RECOMMENDATION Authorize negotiation and execution of a sublease for Bay Ship & Yacht Co., Inc. at Alameda Point. ARRA Agenda Item #2 -C 07 -07 -09 Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority Respectfully s miffed, Leslie Little Development Services Director By: Nanette z.nks Mocanu Finance and Administration Manager Attachment: A. Proposed Sublease Business Terms B. Site Map ATTACHMENT A PROPOSED SUBLEASE BUSINESS TERMS TENANT BUILDING SIZE (SF) TERM RENT Bay Ship & Yacht Co., Inc. 292 2,700 2 yrs $1,129/mo. ARRA Attachment A to Agenda Item #2 -C 07 -07 -09 NM NM NM NM NIN INN MIN . NMM MN NMI NM INN ININ NM NMI iii NM NM NINE NM NM NM iii iii NM NM NM NM INN NM NM iii NM MIN MN SIN NM 895 INN MIN NIN NIB NMI MN NIN MIN E;8 MIN MN was NINI MIN solo MO 5,8 gas ii`..._ I.li. ATTACHMENT B z I V PRY PONI N N 0 '00 NOB), pue digs kee ARRA Attachment B to Agenda Item #2 -C 07 -07 -09 Alameda Reuse and Redevelopment Authority Memorandum 2-D To: Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority From: Ann Marie Gallant Interim Executive Director Date: July 7, 2009 Re: Authorize Negotiation and Execution of a Sublease Renewal for Puglia Engineering of California, Inc. at Alameda Point BACKGROUND The Alameda Reuse and Redevelopment Authority (ARRA) governing Board approves all Alameda Point subleases with a lease term greater than one year. The proposed sublease for Puglia Engineering of California, Inc. is two years. DISCUSSION Puglia Engineering of California, Inc. has occupied Building 67 at Alameda Point for the past 12 years. This building is used for ship repair and related activities. Attachment A describes the business terms for the proposed sublease for Puglia Engineering of California, Inc. in Building 67. The rent for Puglia Engineering of California, Inc. in Building 67 is $63,660 annually, or $0.3789 per sq. ft. with a three- percent increase in the second year of the lease. Building 67 is in fair to poor condition. In accordance with the Exclusive Negotiating Agreement between the ARRA and Sun Cal Companies, this lease has been discussed with representatives from Sun Cal Companies and has their concurrence. FINANCIAL IMPACT This lease will generate $63,660 in the first year. These funds will be retained by the ARRA. RECOMMENDATION Authorize negotiation and execution of a sublease for Puglia Engineering of California, Inc. at Alameda Point. ARRA Agenda Item #2-D 07-07-09 Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority Leslie Little Development Services Director By: Nanette Banks Mocanu Finance and Administration Manager Attachment: A. Proposed Sublease Business Terms B. Site Map ATTACHMENT A PROPOSED SUBLEASE BUSINESS TERMS TENANT BUILDING SIZE (SF) TERM RENT Puglia Engineering of California, Inc. 67 14,000 2 yrs $5,305 /mo. ARRA Attachment A to Agenda Item #2 -D 07 -07 -09 --p CM W ATTACHMENT B 0 C11 ORION ST. / Cji 0r 0 ARRA Attachment B to Agenda Item #2 -D 07 -07 -09 Russell Resources, Inc. Item 4 -A environmental management Alameda Point RAB Meeting on June 4, 2009 Highlights and Analysis RAB members present: Dale Smith (Community Co- chair), Fred Hoffman, George Humphreys, Jeff Knoth, Joan Konrad, Jim Leach, Jean Sweeney, Jim Sweeney, and Michael John Torrey Remediation and other field work in progress: o The Navy removed some of the radioactively contaminated soil from the top of the riprap on the west side of the Seaplane Lagoon. This occurred after the RAB meeting. (Further information below.) o The petroleum remediation systems near the southern end of western hangar row and near the base's Atlantic Avenue entrance are continuing operations. o The air sparge /vapor extraction system to treat groundwater contaminated with benzene and naphthalene at Alameda Point OU -5 and FISCA IR Site 2 is continuing operations. July RAB Meeting — Canceled As is the usual practice, there is no RAB meeting in July. OU -2C Feasibility Study The Navy presented the draft Feasibility Study (FS) for OU -2C, the industrialized area north of Seaplane Lagoon, which includes IR Sites 5, (Building 5), 10, and 12. The FS raises several issues. The FS assumes that all of OU -2C is planned for commercial /industrial reuse. However, the 2006 Alameda Point Preliminary Development Concept contemplates residential reuse for the portion of OU -2C that lies south of West Tower Avenue. Due to currently low contaminant levels, the FS proposes cleanup to residential reuse standards for most of the southern and western portions of OU -2C. The FS targets only a relatively small portion of OU -2C south of West Tower Avenue (future residential in PDC) for commercial /industrial reuse. The FS evaluates soil remedial alternatives that include: (1) excavation with offsite disposal of soil above the remedial goals, (2) leaving contaminated soil in place with pavement and floor of Building 5 floor serving as an isolating cap, and (3) a blend of these two approaches. An important point the FS relies upon in its analyses of alternatives that use the floor of Building 5 as a cap for contaminated soil is that redevelopment plans likely involve demolition of Building 5. If that were to occur, redevelopment would have to include management of the contaminated soil that the floor of Building 5 caps. The cost of this post - transfer remediation is not captured in the FS's cost analyses of the remedial alternatives for soil. The FS evaluates groundwater remedial alternatives, many of which use various approaches to remediate the more contaminated portions of groundwater plumes at OU -2C. Target clean -up levels for groundwater appropriately are designed to be protective of residential reuse in the ARRA RRI, 440 Nova Albion Way, Suite 1, San Rafael, California 94903 415.902.3123 fax 815.572.8600 Agenda Item #4 -A 07 -07 -09 Page 2of2 July 7, 2009 Alameda Point RAB Meeting, June 4, 2009 Highlights and Analysis western and southern portions of OU -2C, and of commercial /industrial reuse elsewhere. Groundwater clean -up goals for the future commercial /industrial portions of OU -2C are calculated to avoid contaminant migration so as to cause exceedances of residential clean -up goals in adjacent residential areas. This FS marks the first time the Navy has formally considered the environmental footprint of the remedial alternatives under consideration. As part of the evaluation of Short-Tern Impacts, this exercise appears under the heading of Sustainable Environmental Restoration. It is also commonly known as Green Remediation. As a follow up to the Alameda Point Update presented at the June 3 ARRA Board meeting, ARRA staff is preparing a comment letter on the FS regarding the OU -2C FS and remediating to residential standards consistent with the PDC. Other concerns noted above will also be addressed. Building 5 Reuse Anna -Marie Cook of the USEPA announced that her agency had awarded a $30,000 contract to explore the feasibility of reuse options for Building 5. The objectives of the land - revitalization study would be to reduce waste generation and reuse the contaminated land to promote environmental stewardship and green technology. USEPA plans to work closely with the ARRA to evaluate various options for Building 5. RAB Facilitator Beginning with the next RAB meeting, the Navy will provide a facilitator to assist in conducting effective meetings. Radioactively Contaminated Soil on West Side of Seaplane Lagoon On Saturday, June 20, 2009, the Navy removed radioactively contaminated soil from a location at the top of the riprap on the west side of the Seaplane Lagoon. The scope of this removal activity was limited to the shallowest three feet of soil to avoid encountering groundwater and accidentally causing contamination to migrate. Some of the riprap within the work area was found to be radioactively contaminated, too, and was removed. At the bottom of its three -foot excavation, the Navy's contractor still observed elevated radioactivity, although lower than at shallower depths. Presumably, the Navy will now prepare a more detailed work plan to clean up the deeper contamination, designed to avoid potential contaminant migration through groundwater. 440 Nova Albion Way, Suite 1, San Rafael, California 94903 415.902.3123 fax 815.572.8600 AGENDA Special 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 1. ROLL CALL 2. CONSENT CALENDAR Tuesday, July 21, 2009 Meeting will begin at 7:32 p.m. Consent Calendar items are considered routine and will be enacted, approved or adopted by one motion unless a request for removal for discussion or explanation is received from the Board or a member of the public. 2 -A. Approve the Proposed Sale of the Two Sewage Ship Waste Offload Barges. 3. REGULAR AGENDA ITEMS None. 4. ORAL REPORTS None. 5. 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.) 6. COMMUNICATIONS FROM THE GOVERNING BODY 7. ADJOURNMENT This meeting will be cablecast live on channel 15. Notes: • Sign language interpreters will be available on request. Please contact the ARRA Secretary 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. Alameda Reuse and Redevelopment Authority Memorandum To: Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority From: Ann Marie Gallant Interim Executive Director Date: July 21, 2009 Re: Approve the Proposed Sale of the Two Sewage Ship Waste Offload Barges BACKGROUND In June 2001 the Alameda Reuse and Redevelopment Authority (ARRA) established a procedure for the disposition of personal property. The procedure delegated to the Executive Director the authority to declare as surplus any item of personal property which is valued at less than $10,000 and which is not required for use by the ARRA in the administration of its powers and duties pursuant to the Joint Powers Agreement. DISCUSSION When the Navy transferred title of certain personal property to the ARRA, it included two Sewage Ship Waste Offload Barges (SWOBs), which were used in support of the management of the port. These two barges are coming close to the end of their service life. Without spending in excess of $100,000 in maintenance and repair, they will be of little use to ARRA for port operations. NRC Environmental Services, the ARRA's Port Manager, received an offer from Cooper Crane and Rigging of Novato, CA, which is willing to spend the money for repair and use the barges in support of its dredge business. The company has made an offer of $34,000 for both barges, which is significantly greater than past proposals for these two barges. Sale of these two barges will reduce the ARRA's liability and will result in a reduction of ARRA insurance costs. FINANCIAL IMPACT ARRA Fund 858 will receive $34,000 in unanticipated revenue. RECOMMENDATION Approve the proposed sale of the two SWOB barges. Agenda Item #2 -A ARRA 7 -21 -09 Honorable Chair and Members of the Alameda Reuse and Redevelopment Authority Res ectf submitted, Leslie Little Economic Development Director By: Nanette Banks Mocanu Asset Management Division Manager