STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of August 9, 2022
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer SUBJECT: Sole Source Contract with Gray Bowen Scott for a Not to Exceed Amount of $474,753 to Advance the Regional Intermodal Transit Center for Grant Funding and Project Readiness and Appropriating $450,000 from the General Fund/Capital Project Reserve and $24,753 from Traffic Impact Fee Fund to Fully Fund the Contract.
RECOMMENDED ACTION:
Adopt a Resolution authorizing the City Manager to execute a sole source contract with Gray Bowen Scott (GBS) for a not to exceed amount of $474,753 to advance the Regional Intermodal Transit Center (RITC) for grant funding and project readiness and appropriating $450,000 from the General Fund/Capital Project Reserve and $24,753 from Traffic Impact Fee Fund to fully fund the contract.
FISCAL IMPACT OF RECOMMENDATION:
The General Fund/Capital Project Reserve was established to ensure the City had the financial capability to respond when opportunities arose to advance top priority projects, such is now occurring with the RITC. While there is sufficient funding in the Capital Project Reserve for the full scope of work being proposed, Task 3 in the amount of $84,243 would only advance if grant funding opportunities surface before 2023 as determined by the City Manager.
SUMMARY
There is a unique window of opportunity over the next 5 months to pursue grant funding for the RITC, which includes the potential for a future bus, rail, and ferry on Bayfront Boulevard. An unprecedented amount of federal and state grant funding for pandemic relief, economic stimulus, and infrastructure investment is becoming available on a competitive basis.
The RITC is highly competitive, having received approximately $46M to date, and continues to score exceptionally well on grant criteria. The Project relieves congestion on I-80; reduces greenhouse gases; is the cornerstone of a transit-oriented development that includes over 400 new apartments with another 325 slated for construction in the coming months; and is an easy sub-10 minute bike ride on the Bay Trail from Rodeo, a community of concern.
Approximately $70M in additional funding is needed to build the infrastructure necessary for the Capitol Corridor train to stop. Over the past several years the City, with the assistance of the GBS team, has raised the profile of the RITC and built the relationships with regional, state, and federal officials needed to secure this level of funding. However, key senior regional elected officials will be ending their term in December.
This contract is for GBS to make a concerted, focused effort through the end of the year and beyond to take advantage of this unique window of opportunity and position the City for grant funding. The scope of work falls into 3 broad categories:
Positioning the Project for Competitiveness
The work completed under this contract will best position the RITC for grants during this window of opportunity, and beyond. While competing for grants is inherently uncertain, getting the Project “shovel ready” is a necessary step to receiving grants in the future.
Project Management
Since 2014, City staff has been directly managing the design of this project, coordinating with agencies such as CCJPA, BART, and utility companies to reconcile issues that affect design of this project. Given current demands on city staff and intensity of effort needed, it is recommended GBS’s scope include project management services. Agencies, such as the Contra Costa Transportation Authority use consultants to manage their complex projects. GBS, as CCTA’s Deputy Project Manager, led the delivery of CCTA’s $120M I-680 Express Lanes Project.
Grant Applications (optional, at the City Manager’s discretion) When a call for projects is issued for grant funding, the timeline to submit the application is often very short. Including grant applicants in the scope of work will ensure the timely submittal of applications and that funding opportunities are not missed. Funding will only be expended, however, if a grant opportunity surfaces and at the City Manager’s discretion.
GBS has been assisting the City of Hercules to secure funding and advance the RITC in Hercules since 2012. At least $46M in Federal, State, Regional and Local funds have been invested to date in the RITC. The Project has attained NEPA and CEQA approvals. The Path to Transit as well as Bay Trail East and West phases have been constructed. Capitol Corridor Joint Powers Authority has formally recognized Hercules as a Candidate Station. GBS has played a key role over this 10-year period and gained intimate knowledge of all facets of this complex project. Given the work needing to be accomplished over the next 5 months, which could not successfully be completed without a deep knowledge of the project, staff is recommending proceeding with a sole source contract.
DISCUSSION:
Since 2012, much progress has been made. The Project now needs an estimated $70M to fully fund the construction of the station, which includes completion of the design, relocation of utilities, and construction of a third track and station platforms.
Under a current contract in place, Gray-Bowen-Scott and Zell & Associates has accomplished the following over the first half of 2022:
Grant Opportunities:
Reviewed and evaluated funding options and the feasibility of various sources for funding RITC improvements.
Prepared a funding request in response to Senator Padilla’s call for projects. The City’s request for design funds was not selected for this very competitive source.
Stakeholder Engagement on Funding Strategy: GBS worked with staff on the development of a funding strategy to pursue funding from Federal, State, and Regional sources and options for a local match by engaging with key funding stakeholders. The GBS team structured, scheduled, and led site tours to provide an update of the project and discuss strategies for funding through Federal, State, and Regional (MTC) funding with key project stakeholders, including:
Supervisor Jim Spering, MTC Commissioner and CCJPA member, and MTC Commissioner Amy Worth: Supervisor Spering subsequently brought Andy Fremier, MTC Deputy Executive Director for Operations to Hercules. Mr. Spering gave Mr. Fremier a tour of the site and explained the regional significance of the City’s project to his staff.
Supervisor Federal Glover, MTC Commissioner Amy Worth, and CCTA executive management staff, Executive Director Tim Haile and Director of Programming Hisham Noemi, GBS is working on rescheduling a meeting and tour with WETA Chair Jim Wunderman and ferry advocate Bobby Winston to discuss opportunities for ferry service in Hercules. Bobby was instrumental in the establishment of the Richmond Ferry and will be very helpful in assisting in securing WETA support for a Hercules Ferry.
GBS is also currently working on a meeting with Supervisor Glover and Commissioner Worth with key MTC leadership staff to identify sources of funding.
As a result of the GBS team’s outreach, the most senior Commissioners on MTC support funding the RITC. GBS also supported Councilmember Kelly’s unique position as Chair of CCTA.
The following scope of work is proposed under the new contract. All work under these tasks will be billed on a time and materials basis.
Task 1 - Position the Project for Competitiveness Cost $145,750 Finalize the strategy to secure full funding of the Project Synthesize all of the strategic input gathered thus far into a complete funding strategy.
Identify a Project Champion to help garner the support of key elected and appointed officials.
Prescribe actions necessary to increase the likelihood of securing funds from each target.
Develop key asks of elected officials and granting agencies for the project, garner their help in identifying specific sources of grant funds and define a mechanism to document tangible consensus on a conceptual funding strategy:
CCTA Board Members
MTC Commissioners
State representatives
State officials
Federal officials
Congressman Thompson
Congressman DeSaulnier
Congressman Garamendi
Identify team members to serve as liaisons with key stakeholders and granting agencies such as WETA, CTC, and MTC. These liaisons would attend meetings to help position the Project and identify additional funding opportunities as they emerge.
Arrange periodic meetings with executive management of funding agencies and the City to facilitate joint decisions on policy-level issues such as funding strategies and programming options.
Strategic Guidance and Stakeholder Coordination (with Zell & Associates) The Consultant team will conduct ongoing coordination with key stakeholders to brief them on the findings and recommendations resulting from past and current planning, technical, and engineering studies to foster and secure support for grant funding. As appropriate, Consultant will strategize with stakeholders to pursue grant funding opportunities consistent with the Plan. Stakeholders will include groups such as community, business, and advocacy organizations as well as agency partners such as CCTA, WestCat, and WETA.
This subtask includes regular meetings with City management staff to continually refine and strategize our ongoing work program and coordinate the implementation of our Outreach Plan. Eric Zell, Zell & Associates, will lead all government relations and public affairs strategies and stakeholder engagement for the team.
Strategic Communications Program – Phase 1(with BMWL)
Update and communicate messaging about the benefits and features of the Project. Residential units which are part of the City’s Transit Oriented Development have been constructed and/or are under construction. This includes creation of a new messaging guide and an update of all communications materials with information about the latest developments in the Project vicinity expressed to resonate best with the target audience. Messaging will target key stakeholders such as the elected officials of MTC, WestCat, WETA, Capitol Corridor, CCTA, and local, state, and federal officials to increase awareness of the project and its potential benefits. Details of BMWL’s scope are attached of which just Phase 1 would be conducted under this amendment.
Task 1 5-month Deliverables
Commitment from MTC on inclusion of Project into one or more funding programs Documentation of funding strategy
Task 2 - Project Management and Controls Cost $244,760 This task is focused on starting up leadership of the project’s delivery and preparing for the maintenance of such leadership through close out of the Project. Consultant will serve as the City’s Deputy Project Manager providing direct management of the City’s design consultant contract scope, cost, and schedule. Consultant will serve as the City’s extension of staff for project delivery issues with the City’s partners, stakeholders, and consultants as required and will keep the City’s Project Manager apprised of, and involved in, project progress and issues on a regular basis. The specific subtask include:
Contract Management
Manage the design consultant contracts including review and approval of invoices and processing amendments as needed.
Develop strategies to structure the construction contract documents and associated environmental re-evaluation to allow for phased construction based on availability of funds.
Establish a Contracting and Staffing Plan that indicates who will perform all different portions of the Project scope, when it will be done and the anticipated associated cost.
Support the City in addressing and complying with requirements imposed by Caltrans Audits and Investigations.
Project Meetings and Communication
Develop an organization chart to define communications protocols and reinforce consistent messaging within the project team and to key stakeholders.
Arrange and facilitate meetings as needed to address project issues.
Lead and/or attend various project-specific meetings, including meeting preparation.
Report regularly to City on progress, issues, and resource needs.
Provide as-needed project status reports and funding reports.
Serve as the liaison between the project team and the City.
Serve as the primary liaison between the City and key stakeholders.
Work with the City to ensure public questions and concerns are addressed.
Project Execution and Issue Resolution
Compile a thorough understanding of the project status including history of previous decisions, and discussions with key stakeholders.
Provide leadership to the Project Team, including project vision, delivery goals and team decision-making protocols.
Develop strategies to guide various project issues to resolution.
Work with railroad subconsultant to establish communication with UPRR and to resolve issues as they arise.
Project Controls
Develop a risk register to identify, manage, and communicate project risks and mitigation strategies; implement selected mitigation measures.
Compile an all-in (complete) Project Cost Estimate including escalation and risk contingency.
Compile and monitor all project expenditures against approved funded project budget.
Implement a project change management process and documentation.
Develop and manage a detailed project schedule. Document assumptions with respect to project schedule.
Develop and track detailed project cost estimates and forecasts.
Detailed Funding Plan
Develop and initiate implementation of a funding plan based upon the funding strategy which includes a plan to secure the local match for federal grants. Remind CCTA and leverage that Hercules voluntarily “returned” $5m in STIP funds several years ago when CTC needed to deprogram projects due to lack of State funds.
Compile project grant requirements such as procurement limitations, timely use of funds deadlines, and invoice reporting (provided by Task 3).
Optimize the use of the fund sources and address match requirements of various grants.
Review the terms of funding agreements and assign eligible items of work to various funds programmed to this project.
Facilitate or participate in meetings with City’s funding partners to achieve consensus on proposed approach.
Manage efforts to secure grant funding.
Task 2 5-month Deliverables
Contracting and Staffing Plan for delivery of the entire project All-in cost estimate
Risk register
Cost monitoring report
Funding plan showing target grants and the Project delivery schedule Task 3 – Grants – Monitor Opportunities, Complete Applications and Assist with Approvals Cost $84,243
Under this task, Consultant will support Client in working with Caltrans, Federal agencies (primarily Federal Highway Administration and Federal Transit Administration), CCTA, East Bay Regional Parks District, MTC, and the CTC to fully fund the Project consistent with the funding strategy (Task 1).
Monitor opportunities
Gather background information and documents.
Clarify and confirm deadlines and requirements for each grant.
Define the scope of technical and other studies or reports needed to support efforts to secure funding and necessary approvals.
Complete and submit grant applications
Complete applications with help from other resources as appropriate.
Facilitate agency review and decision-making process.
Secure approvals
Secure permission to expend funds, including preparation of programming, allocation, and other requests (i.e. extension requests if required to Caltrans and / or CTC).
Secure reimbursement of funds.
Assist with preparation of documents required by FHWA, FTA, Caltrans, and CCTA. Following submittal of the package(s), Consultant will coordinate with the appropriate agencies such as Caltrans (including Local Assistance or Division of Rail, and at District and HQ levels) and FHWA to make sure requests are properly fulfilled.
Task 3 5-month Deliverables
To be defined by Consultant when the need arises and then authorized by the City Manager consistent with authority delegated by City Council.
The Proposed Team
GBS has assembled a team of experienced project leaders with deep local and regional relationships with transportation agencies and their policy officials and paired them with specialized expertise in rail. Individuals listed below will assist as detailed below. Leo Scott will serve as Gray-Bowen-Scott’s primary lead (Deputy PM) with the City’s PM. Individuals listed below will assist as follows:
Leo Scott, Sheena Patel, Terry Bowen, Matt Todd, Norma Ortega and support staff of Gray-Bowen-Scott: Leo will serve as the Deputy Project Manager working with Sheena Patel to set up the Project Management and Controls processes. Once the plans for this are agreed upon, Sheena will lead the implementation. Terry will partner with Eric on strategic stakeholder outreach as well as be a resource on historical strategic and technical knowledge of this project. Matt will lead the preparation of the funding plan and grant applications. Norma Ortega, retired Caltrans CFO, has specialized knowledge in federal and state transportation funding. As with Project Management, once funding and grant development plans are agreed upon, GBS support staff will conduct the majority of the implementation.
Eric Zell, Zell & Associates: Eric will continue to provide strategic guidance and assistance to bring intercity rail service to Hercules. He will lead strategic stakeholder outreach and coordination. Eric adds Bobby Winston, Ferry advocate, to his team to assure effectiveness with WETA.
John Whitehurst and Jill Nelson-Golub, BMWL Strategic Communications, Public Affairs, Advocacy: Under Eric and Terry’s direction, BMWL will prepare communication and advocacy material and help implement our communications plan.
JMA, Rail Specialist: We plan to add JMA to our team as a resource for communications with UPRR and CCJPA.
Ryan Bissegger and technical staff, Mark Thomas and Company: We work with Ryan on other grant application efforts and he will function as a member of our team to deepen our bench and strengthen our Gray-Bowen-Scott grant application capabilities and capacity.
ATTACHMENTS:
Resolution
Agreement including GBS Proposal.
Financial Impact
Description:
Expenditure of an amount not to exceed $474,753 to be fully funded with $450,000 from General Fund/Capital Project Reserve and $24,753 from Traffic Impact Fee Fund.
Funding Source:
General Fund/Capital Project Reserve $450,000
Traffic Impact Fee Fund $24,753
Budget Recap:
Total Estimated cost: $ 474,753 New Revenue: $
Amount Budgeted: $0 Lost Revenue: $
New funding required: $474,753 New Personnel: $
Council Policy Change: Yes No
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