STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 13, 20223
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer SUBJECT: Amendment No.2 with Gray Bowen Scott for a Not to Exceed Amount of $312,169 to Provide Project Management and Advance the Funding Plan for The Hub for a Total Not to Exceed Contract Amount of $902,501 RECOMMENDATION ACTION:
Adopt a resolution authorizing the City Manager to execute Amendment No.2 with Gray Bowen Scott (GBS) for a not to exceed amount of $312,169 to continue project management and advance the funding plan for The Hub for a total not to exceed contract amount of $902,501.
EXECUTIVE SUMMARY:
Hercules is uniquely positioned to advance The Hub, which includes plans for a new train stop and ferry service along the waterfront. Currently there is sufficient grant money available to cover the cost of this contract amendment, which will advance the design and look to leverage future grant opportunities at a time when infrastructure funding is at the highest level in recent history. Both state and federal legislation has a heightened awareness of the need to address climate change and get people out of cars. Transit-oriented development, which includes both housing and employment elements, is already situated adjacent to the site. This makes the Hub a very competitive project that aligns with both state and federal priorities. Given the $107M needed to fully fund the project, entering into a contract amendment with GBS at this time will continue to make the most of this window of opportunity.
Under their existing contract, GBS prepared two grant applications: a Transit and Intercity Rail Capital Program (TIRCP) grant, which was submitted jointly with Capitol Corridor (CCJPA) as the lead; and an FSP (Federal State Partnership for Intercity Rail Program) grant, which the City submitted independently. The joint TIRCP application was successful and CCJPA is working with the participating partners to determine their respective allocation amounts. Based upon preliminary discussions with CCJPA, it appears the City will be receiving approximately $2.4M. This contract amendment will continue to advance design delivery and momentum on strategic funding coordination and advocacy activities to the end of this calendar year, by which time the City anticipates to have heard back on the $9.6M FSP grant application. At that time, with the outcome of both grant applications known, the City can then reassess the strategy on how to best proceed.
BACKGROUND:
The Hub is Hercules’ premier, regional, state-of-the-art housing and transportation community along the waterfront. By connecting thousands of homes with a new train stop along the Capitol Corridor, bicycle and pedestrian pathways, bus routes, carpool options, and ferry service, The Hub and its surrounding community will be a model for successful transit-oriented communities in the Bay Area.
The project has received full environmental clearance, right of way has been secured, and $46M in improvements have been constructed to date using grant funding. This includes the extension of John Muir Parkway and Bayfront Boulevard to provide direct access from I-80/SR-4 to The Hub; also, Bay Trail gap closures including to the north to provide connectivity to Rodeo, a community of concern, and to the south from Railroad Avenue to tie into the existing trail towards Sante Fe Avenue.
Over the past 10 months under the current contract and first amendment, GBS has completed and accomplished the following (also includes follow-up notes & tasks):
The GBS team rebranded the Project to The Hercules Hub and updated the Project messaging to highlight its alignment with the Bay Area’s focus on investing in transit-oriented communities. A new logo and messaging capture the realized and potential housing and employment development at the site, communicating the benefits and features of the Project to gain support from elected officials, commission members, opinion leaders, and the general community. The team produced outreach materials with the new brand and messaging including an update to the City’s project webpage and a leave-behind brochure. The team is currently working on the development of a stand-alone website consistent with the new brand that will be completed in July.
GBS and Zell worked closely with city staff and key project stakeholders, including MTC, CCTA and CCJPA, to develop and implement a Funding Plan for the project. This included several meetings with funding and programming experts within each agency. The Preliminary Funding Plan was presented to the City Council in January 2023. The Funding Plan is intended to be the basis for monitoring and applying for future grant funding and will need to be actively managed and refined as new funding opportunities arise.
The GBS team identified and developed two promising near-term grant applications to fund the final design phase of the Hub:
California State Transportation Agency’s (CalSTA) Transit and Intercity Capital Rail Program (TIRCP) Federal Rail Administration’s (FRA) Federal-State Partnership for Intercity Rail Program (FSP) On April 24, 2023, the Hub was successfully awarded TIRCP funding under a joint application at an anticipated amount of $2.4M for final design. This $2.4M will provide the 20% local match for the FSP application which requests $9.6M in federal funding. Award announcements for the FSP are anticipated by December 2023. In the meantime, it is critical that the City take advantage of the visibility provided by the TIRCP award to elevate the project and further its position for funding opportunities.
In addition to the rail station, GBS and Eric Zell have provided strategic advocacy to garner support for the City’s overall vision of the Hub, including future ferry service. Leo Scott and Eric Zell participated in meetings and events with elected officials and funding partners to elevate the project and position for funding. As a result of these efforts, the team supported the City in applying for a federal earmark through Congressman Garamendi’s office to fund the Environmental Review phase of the Hercules Ferry Terminal Project.
GBS has also been serving as the City’s Project Manager overseeing the design delivery of the project. We have initiated regular coordination with CCJPA Planning and CCJPA Engineering to put forth a coordinated effort towards working with UPRR, the host railroad.
Having acknowledged the long history of the project and their previous engagement, the UPRR has recently outlined a proposed path forward for the final design of the project that includes a series of exceptions to their standard practice and is valid only for the Hub project. The letter notes that UPRR will need to prepare a network capacity analysis to identify project impacts on freight operations and confirm the layout of the track improvements. UPRR has also recently provided comments on the revised 10% track plans. It is critical that this momentum with UPRR on design development continue to set the track alignment and move forward with utility relocations. The network capacity analysis can move forward using funding that is already committed, so we can take advantage of the time we have until remaining funding is secured for final design.
The GBS team has completed the scope of work under their current contract, apart from development of the stand-alone project website which will be completed in July.
ANALYSIS:
Under proposed Contract Amendment No. 2, GBS will continue to advance the design and funding plan, maintaining project momentum including strategic coordination and advocacy until the end of the calendar year. By that time it’s anticipated the City will hear back on the $9.6M FSP grant application and can strategize on the next steps to take.
GBS’s scope consists of 2 tasks, Project Management and Funding Plan Advancement as shown in the table and further described below:
Task Title
Activities by Dec. 31, 2023
Budget
Task 1: Project Management and Controls
Oversee Design Consultant.
Manage and monitor the Construction Cost Estimate and Project Schedule.
Cost Monitoring Reports.
Manage the Risk Register and implement mitigation strategies.
Resolve project design issues.
Coordinate with UPRR and CCJPA
Initiate UPRR Capacity Analysis.
$106,008
Task 2: Funding Plan Advancement
Perform strategic coordination and advocacy with key funding partners.
Coordinate with CalSTA on TIRCP award conditions.
Coordinate with FRA to support FSP application.
Evaluate new funding opportunities.
Manage the Funding Plan showing target fund sources compatible with the Project delivery schedule. $92,379
Task 2A: TIRCP Cycle 7
(Optional)
Develop TIRCP Cycle 7 Application (if determined appropriate within the Funding Strategy). $113,782
Totals
$312,169
Task 1 - Project Management and Controls
This task is focused on leadership of the project’s delivery. 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.
Task 2 – Funding Plan Advancement
This task is focused on management of the project’s Funding Plan to position for identified funding programs and evaluate new funding opportunities as they arise. It includes strategic stakeholder coordination and advocacy to establish and reinforce stakeholder support for potential funding opportunities. This task includes the option to develop a TIRCP Cycle 7 Application, if conditions are favorable.
FISCAL IMPACT:
There is sufficient funding to fully fund Amendment No.2 utilizing grants from the Subregional Transportation Mitigation Program (STMP) administered by WCCTAC (West Contra Costa Transportation Advisory Committee) and the Measure J TLC Program administered by CCTA (Contra Costa Transportation Authority) included in the Adopted FY 22-23 Budget as follows:
Amendment No. 2 Funding Source Amount
STMP $212,169
Measure J TLC $100,000
Total $312,169
The financial commitment to date for the GBS contract is as follows:
:
Approval Date
Authorized Amount
Original Contract
8/9/2022.
$474,753
First Amendment
1/24/2023
$115,579
Second Amendment
Pending
$312,169
Total
$902,501
ATTACHMENTS:
Attach 1- Resolution
Attach 2- Letter Proposal including Scope & Budget
Attach 3 – GBS Team Bios