2009-02-03 ARRA PacketCITY OF ALAMEDA • CALIFORNIA
SPECIAL JOINT MEETING OF THE ALAMEDA REUSE AND
REDEVELOPMENT AUTHORITY (ARRA) AND
COMMUNITY IMPROVEMENT COMMISSION (CIC)
TUESDAY - - FEBRUARY 3, 2009 - - - 7:31 P.M.
Location: Cit Council Chambers, City Hall, corner of Santa Clara
Avenue and Oak Street.
Public Participation
Anyone wishing to address the Board/Commission on agenda items or
business introduced by the Board/Commission may speak for a maximum
of 3 minutes per agenda item when the subject is before the
Board/Commission. Please file a speaker's slip with the Deputy
City Clerk if you wish to speak on an agenda item.
1. ROLL CALL - ARRA, CIC
2. CONSENT CALENDAR
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
Council/Board/Commission or a member of the public
2-A. Minutes of the Special Joint City Council and CIC Meeting, and
the Special CIC Meeting held on January 6, 2009. (City Clerk)
[CIC]
2-B. Recommendation to authoriz the use of $350,000 of Tax Exempt
Bond Funds from the Merged Area Bond (Funds 201.11 and 201.15)
and appropriate the funds for use for the Fleet Industrial
Supply Center (FISC) Emergency Water Repairs and Electrical
Upgrades at Park Street and Buena Vista Avenue; and authorize
FISC Lease Revenue for additional annual support of the Facade
Grant Program. (Development Services) [CIC and ARRA]
3. AGENDA ITEMS
3-A. Recommendation consider an amendment to the Lease Agreement of
2315 Central Avenue between the CIC of the City of Alameda,
Lessor, and Alameda Wine Company, LLC, Tenant. (Development
Services) [CIC]
3-B. Recommendation to approve a Five Year Lease and Repayment
Plan/Write-off with AC Hornet Foundation. (Development
Services) [ARRA.]
3-C. Recommendation to approve an amendment to Consultant Contract
with Harris & Associates for On-Call Services for Review of
Land Development Entitlement Applications for Redevelopment of
Alameda Point. (Development Services) [ARRA]
4. ORAL REPORTS
4-A. Oral Report from Member Matarrese, Restoration Advisory Board
(RAB) - Highlights of January 8th Alameda Point RAB Meeting.
[ARRA]
5. ADJOURNMENT - ARRA, CIC
Be erly Jor s fi CbLir
Alameda R- an1 Redevelopment
Authority and Community Improvement
Commission
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY
Memorandum
To: Honorable Chair and
Members of the Alameda Reuse and Redevelopment Authority
From: Debra Kurita
Executive Director
Date: February 3, 2009
Re: Approve a Five -Year Lease and Repayment Plan/Write -off with AC
Hornet Museum Foundation
BACKGROUND
The initial lease with the AC Hornet Museum Foundation (the Hornet) was executed in
April 1998 for pier space and a parking lot (80 feet of pier and approx 250,000 sf
parking lot). The lease was amended in May 1999 after the Hornet was unable to meet
its rent obligation. The base rent for the piers was restructured and lowered
significantly. The parking lot rent was also lowered, and a portion of retroactive base
rent was deferred for two years. A portion of base rent, which was not deferred, was
forgiven.
In August 2000, the lease was amended a second time, significantly reducing the base
rent to $8,500 per month, total, for both pier space and parking lot, and the parking lot
premises were reduced by approximately 7,260 sf. At the time, the Hornet was 20
months behind in rent payments. The Alameda Point master developer, property
managers, and Alameda Reuse and Redevelopment Authority (ARRA) staff met with
the Hornet to discuss a rent repayment plan.
In November 2005, after the Hornet again became delinquent in rent payments, the
ARRA and the Hornet entered into a license agreement requiring rent for the greater of
$3500 monthly or $1.00 for every museum patron. Any amount over $3,500 would be
applied to the outstanding balance the Hornet accrued during the lease period.
The license agreement was developed so that the Hornet could both begin paying rent
and reduce the large balance owed to the ARRA. Before the license agreement was
signed, the growing rent delinquency had caused the Hornet to accrue a large debt.
The Acting City Manager negotiated this solution to allow the ARRA to generate
revenue from the pier occupied by the Hornet, while at the same time assisting the
Hornet with reducing its debt. At year -end 2005, the Hornet was in arrears for $555,335.
DISCUSSION
Under the 2005 license agreement, the Hornet has been consistently paying its
minimum balance and has paid $38,631 above the minimum toward its original
ARRA/CIC
Agenda Item #3 -B
02 -03 -09
Honorable Chair and February 3, 2009
Members of the Alameda Reuse and Redevelopment Authority Page 2 of 3
outstanding debt. However, the Hornet has had difficulty securing financing and
attracting large donors because of the large rent liability it carries on its books. In
addition, many of the corporate holiday parties scheduled on the Hornet at the end of
last year were canceled.
The ARRA's current financial reports are carrying funds owed from eight years ago.
Neither eviction nor standard debt collection practices appear to be a solution to this
problem. The Hornet is not in a position to pay these delinquent rents and continue to
invest in the numerous capital needs of the museum ship. As a result, staff has
discussed a partial repayment option with the Hornet and proposes the ARRA consider
new lease terms.
Under the proposed new lease agreement, in place of the monthly minimum payment of
$3,500 per month or $42,000 annually, the Hornet will be required to make an annual
rent payment of $36,000 ($3000 per month). The proposed agreement includes a
repayment plan for the outstanding balance owed by the Hornet, which currently totals
$555,335. The repayment plan contains an incentive whereby the Hornet's balance will
be reduced by one dollar for every dollar repaid, provided that a total of $277,668, or
one half of the outstanding payment due, is remitted in five years. If at the end of the
five -year period, the Hornet has not paid down the entire $277,668, the ARRA will
restore the portion of arrears written off, and it will all come due. Staff will provide an
annual progress report on the repayment plan.
Although the license was executed in 2005, the ARRA was reluctant to accept the
license as payment for the Hornet's original lease obligation. As a result, the ARRA has
been tracking what the Hornet would owe if the old lease were in effect. This amount,
which appears in the ARRA's financial documents and on the Hornet's ledgers, is
$332,698, plus the $555,335 owed as of the end of 2005. Should the ARRA approve
the new lease and repayment plan, staff will no longer report or track information related
to the original lease agreement.
FINANCIAL IMPACT
The lease revenue that the ARRA receives from the Hornet will be reduced by $6,000,
from $42,000 annually to $36,000. The ARRA will begin to recapture half of the
$555,335 owed by the Hornet under its former lease agreement. At the end of the five -
year term, the ARRA will need to write off half of the $555,335 ($277,668) if the Hornet
meets its repayment goal. This action will significantly restructure the ARRA's
uncollected rent reporting within monthly financial statement. The Hornet currently
accounts for 42% of the ARRA's monthly reported uncollected rents.
RECOMMENDATION
Approve a five -year lease and repayment plan /write -off with AC Hornet Museum
Foundation.
Honorable Chair and
February 3, 2009
Members of the Alameda Reuse and Redevelopment Authority Page 3 of 3
tfully submitt
Leslie Little
Development Services Director
By:
Nanette Banks Mocanu
Finance and Administration Manager
NB:dc
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY
Memorandum
To: Honorable Chair and
Members of the Alameda Reuse and Redevelopment Authority
From: Debra Kurita
Executive Director
Date: February 3, 2009
Re: Approve an Amendment to Consultant Contract with Harris & Associates
for On -Call Services for Review of Land Development Entitlement
Applications for Redevelopment of Alameda Point
BACKGROUND
In May 2007 the City issued a request for qualifications for consulting services for the
review of redevelopment entitlement applications for Alameda Point. The scope of work
includes the review of storm water /floodplain /Federal Emergency Management Act
(FEMA) improvements, sewer infrastructure demands, transportation planning, traffic
engineering, geotechnical support services, and project management. Three
consultants submitted proposals and after interviews with all the consultants, the City
selected Harris & Associates for the work. On November 29, 2007, the City entered into
a Consultant Agreement with Harris & Associates, in an amount not to exceed $74,900,
to conduct a review of the preliminary analysis used in the preparation of SunCal's
Development Concept. On November 4, 2008, the contract was amended to extend the
term to June 30, 2009.
DISCUSSION
On December 19, 2008, SunCal submitted their Alameda Point Draft Master Plan. This
plan was discussed at the Alameda Reuse and Redevelopment Authority's January 7,
2009, meeting. Once the Draft Master Plan is approved, detailed design efforts will be
undertaken by SunCal. Since the City does not have the resources available to review
the draft master plan, staff proposes to amend the existing contract with Harris &
Associates to add the review of the detailed entitlement submittals to the scope of work,
authorize hiring a sub - consultant, Nelson Nygaard to review the Transportation Plan
and associated studies, and increase the total contract amount to a not to exceed
amount of $225,000.
Harris & Associates has successfully assisted the City with similar work on the
Catellus /Bayport project. They are familiar with the City's design standards and are well
qualified to perform this work for Alameda Point. A copy of the contract is on file in the
City Clerk's office.
ARRA/CIC
Agenda Item #3 -C
02 -03 -09
Honorable Chair and February 3, 2009
Members of the Alameda Reuse and Redevelopment Authority Page 2 of 2
FINANCIAL IMPACT
The project is funded by the Alameda Point developer, SunCal.
MUNICIPAL CODE /POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
RECOMMENDATION
Approve an amendment to consultant contract with Harris & Associates for on -call
services for review of land development entitlement applications for redevelopment of
Alameda Point.
Respec Ily submitted,
atthew T. Naclerio
Public Works Director
420D kuit6
By: Barbara Hawkins 6.6. `-
City Engineer
MTN:BH:gc
Russell Resources, Inc.
environmental management
Alameda Point RAB Meeting on January 8, 2009
Highlights and Analysis
RAB members present: Dale Smith (co- chair), Fred Hoffman, George Humphreys, Joan Konrad,
Jim Leach, Jean Sweeney, Jim Sweeney, and Michael John Torrey
Remediation and other field work in progress:
• Debris pile removal along north shore of Seaplane Lagoon — continuing —about 18,000
yd3 removed as of the RAB meeting from the first debris . pile, with about 1,000 yd3
remaining; the other, smaller debris pile is to be removed shortly thereafter. More
recently, the Navy announced that, due to the larger- than - anticipated debris pile removal
effort, remediation of sediments in the Seaplane Lagoon will be delayed a few months.
• Removal and replacement of radiologically impacted storm drain outside Building 5.
• Groundwater petroleum remediation system near Atlantic Avenue entrance -
continuing —more than 80,000 pounds had been removed as of the RAB meeting.
• Groundwater treatment at IR Site 14 (former fire training area in Northwest Territory) —
continuing as of the RAB meeting, but more recently it has encountered technical
difficulties, as had the groundwater treatment at IR Site 26 (Western Hangar Zone). The
BCT is to meet to consider modifications to the treatment process at both sites to address
the difficulties.
• The petroleum remediation system at the southern end of the western hangar row is
continuing to extract much more jet fuel than was expected —more than 90,000 pounds as
of the RAB meeting.
Operable Unit 5 /IR Site 2 Groundwater Remediation (Benzene - Naphthalene Plume)
The Navy updated the RAB on installation of the groundwater treatment system for the benzene -
naphthalene plume, which is located primarily under the southern portions of North Housing and
the former FISCA, under Island High School, and under a portion of Marina Village Housing.
The work plan for this remediation was finalized in September 2008, and installation of the
system began in October 2008.
The treatment approach for the benzene /naphthalene plume is to harness bacteria and other
microorganisms, which are naturally occurring underground, to degrade these two petroleum -
related contaminants into harmless chemicals, such as carbon dioxide and water. This biological
degradation is already occurring, but only very slow, because the microorganisms need oxygen
to thrive, and any oxygen underground is quickly depleted by the microorganisms' metabolism
of the benzene and naphthalene. Naturally, oxygen underground is replenished from the air
above ground. This is a very slow process.
The basis of the groundwater treatment scheme is to supply plenty of oxygen to the
microorganisms so they can degrade the benzene and naphthalene much more quickly. This is
done by slowly injecting air underground through a network of shallow wells located where the
ARRA/CIC
Regarding
Agenda Item #4-A
02 -03 -09
RRI, 440 Nova Albion Way, Suite 1, San Rafael, California 94903 415.90.2
Page 2 of 2
February 3, 2009
Alameda Point RAB Meeting, January 8, 2009
Highlights and Analysis
groundwater contamination is greatest. To help ensure no hazardous vapors are released to the
aboveground air by the treatment system, a separate set of wells is installed, interspersed
amongst the injection wells, to suck out any underground gases that might migrate to
aboveground air. Vapor that is extracted from these wells is treated before release. Pilot test
results indicate the treatment system will be effective in achieving remedial goals in the
immediate vicinity.
The Navy has committed to actively remediating two hot spots within the benzene - naphthalene
plume, potentially leaving contaminant reduction in the rest of the plume to natural processes
(called monitored natural attenuation or MNA). The regulators favor active treatment of other
portions of the benzene - naphthalene plume. Regulators point out that MNA time frames likely
will be too long, an opinion supported by the relatively high contaminant concentrations still
present many decades after the presumed initial release. The Navy and the regulators have
agreed to revisit this issue as phase two, after the phase one hot spots have been cleaned up.
The initial area of active treatment encompasses most of the 39 -unit Shinsei Gardens apartment
project, which currently is under construction. The Navy is working closely with the project
developer to coordinate installation of the treatment system with site construction activities. The
Navy is devoting considerable effort to designing the treatment system so as to be unobtrusive to
the project's future residents.
Operable Unit 2B Groundwater
The Navy discovered a previously unknown source of groundwater contamination during a
recent data -gaps investigation in OU -2B's IR Site 4. An oil -water separator (OWS -163) outside
Building 163 leaked trichloroethene (TCE, a solvent), which contributes to OU -2B's
groundwater contamination plume. Building 163 is south of Atlantic Avenue, slightly west of
Building 360. The oldest building at Alameda Point, Building 163 originally housed a borax
processing operation. During Navy use, OWS -163 separated floatable oils from wastewater
leaving Building 163. Apparently, the wastewater also contained TCE, which is a liquid that is
heavier (denser) than water. TCE likely accumulated in the bottom of OWS -163 and/or its
associated piping and leaked out through cracks into the surrounding soil and groundwater.
Groundwater contamination in the immediate vicinity of OWS -163 is among the highest ever
observed Alameda Point.
Since the RAB meeting, the Navy has removed OWS -163 and contaminated soil surrounding it.
Further, a previously planned pilot test of a relatively new groundwater treatment technology is
being modified to target OWS -163's TCE hotspot. The Navy and the environmental regulators
are collaborating to respond to the contamination without delay.
440 Nova Albion Way, Suite 1, San Rafael, California 94903 415.902.3123 fax 815.572.8600