Recommendation to Authorize the City Manager to Execute a Memorandum of Understanding (MOU) between the City of Alameda and the Water Emergency Transportation Authority (WETA) regarding the Construction of a Replacement Seal Haul Out at Alameda Point; and

Final Passage of Ordinance Approving a Lease and Authorizing the City Manager to Execute Documents Necessary to Implement the Terms of a 60 Year Lease Agreement and Approve a Temporary Right of Entry Permit with Water Emergency Transportation Authority (WETA) for 0.73 Acres of Undeveloped Upland Real Property and 3.4 Acres of Submerged Lands Located along West Hornet and Ferry Point Streets at Alameda Point. [Requires four affirmative votes] (Base Reuse 819099)

Body

To: Honorable Mayor and Members of the City Council

From: John A. Russo, City Manager

Re: Recommendation to Authorize the City Manager to Execute a Memorandum of Understanding (MOU) between the City of Alameda and the Water Emergency Transportation Authority (WETA) regarding the Construction of a Replacement Seal Haul Out at Alameda Point

BACKGROUND

At the March 3, 2015 City Council meeting, the Council approved the first reading of the sixty year lease with the Water Emergency Transportation Authority for 670 West Hornet Avenue. The Council further expressed that final passage of the ordinance approving the lease would be influenced by resolution of the harbor seals issue.

The proposed WETA project requires the demolition of an existing pier which has become a haul out for harbor seals. WETA has agreed to fund, design, construct and maintain a replacement haul out pursuant to this purposed MOU.

DISCUSSION

The attached MOU addresses the issues of the replacement haul out in the following:

· WETA will establish a $100,000 holding fund which shall be earmarked for planning , design and construction of the new haul out;

· Parties will meet and confer to determine a site for the proposed haul out;

· WETA will design the haul out and go through the appropriate City approval processes;

· WETA will be the lead party responsible for all third party permitting for the new haul out;

· WETA shall commence construction of the New Haul-Out Site on or before August 2016 and prior to demolition of the Existing Haul-Out Site in connection with construction of the Project unless WETA has not obtained all Permits issued by governmental agencies other than the City ("Third-Party Permits"). WETA shall continue to diligently seek to obtain the Third-Party Permits. Upon receipt of all such Third-Party Permits, WETA shall promptly commence construction of the New Haul-Out Site during the earliest available applicable environmental work window for construction within San Francisco Bay that is not less than ninety (90) days after receipt of the Third-Party Permits to take into consideration the timing reasonably necessary for WETA's procurement procedures.

· Upon completion of construction of the new haul out, WETA agrees to maintain the structure in good order and repair; and

· If the City reasonably determines that WETA is unable to commence construction of the new haul out, the City has the right to take over the project and use the funds in the holding fund account.

Under the terms of this MOU, WETA would be allowed to remove the existing haul out prior to construction of the new haul out, only if the delay is caused by third party permitting or other force majeure events, which are beyond the parties' control. The City, working with WETA and environmental consultants will diligently work to provide interim temporary haul out options until the new haul out is constructed. WETA has agreed to begin construction of the new haul out during the earliest available applicable environmental work window for construction that is not less than ninety (90) days after receipt of the Third-Party Permits. The ninety days allow WETA to comply with its procurement procedures, which normally take approximately four months to award a contract.

The WETA Maintenance and Operation Center will bring 100 jobs to Alameda and will be the first new construction at Alameda Point. In addition, the project will provide $2.5 million in public infrastructure. The third floor of the proposed WETA project will serve as the WETA regional Emergency Operations Center which will be vital in ensuring the residents of Alameda access to supplies and transit in the event of a regional disaster.

FINANCIAL IMPACT

There are no immediate fiscal impacts for this MOU. If WETA does not perform, the City could receive up to $100,000 to fund the expenses related to design, construction and permitting of a new harbor seal haul out.

MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE

There is no impact on the municipal code.

ENVIRONMENTAL REVIEW

WETA has completed all of its environmental review obligations. The CEQA: Mitigated Negative Declaration was adopted by WETA Board in June 2011 and the NEPA Determination of Categorical Exclusion was issued May 2013.

RECOMMENDATION

Authorize the City Manager to execute a Memorandum of Understanding (MOU) between the City of Alameda and the Water Emergency Transportation Authority (WETA) regarding the construction of a replacement seal haul out at Alameda Point; and final passage of Ordinance approving a Lease and authorizing the City Manager to execute documents necessary to implement the terms of a 60 year Lease Agreement and approve a Temporary Right of Entry Permit with WETA for 0.73 acres of undeveloped upland real property and 3.4 acres of submerged lands located along West Hornet and Ferry Point Streets at Alameda Point.

Respectfully submitted,
Jennifer Ott, Chief Operating Officer, Base Reuse Department

By
Nanette Mocanu, Acting Assistant Community Development Director

Financial Impact section reviewed,

Elena Adair, Finance Director

Exhibit:
1. Memorandum of Understanding (Harbor Seal Haul Out)