City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: NOVEMBER 19, 2024 FROM: GENERAL SERVICES DEPARTMENT, WARD: ward 1 COMMUNITY & ECONOMIC DEVELOPMENT
DEPARTMENT, OFFICE OF SUSTAINABILITY
SUBJECT: AWARD BID 8122 FOR CONSTRUCTION OF THE NORTHSIDE AGRICULTURAL INNOVATION CENTER IN THE AMOUNT FOR $1,543,887.44 TO MARINA LANDSCAPE, INC. AND APPROVE A SUPPLEMENTAL APPROPRIATION AND INTERFUND TRANSFER IN THE AMOUNT OF $2,300,000 FROM THE GENERAL FUND TO COMPLETE INFRASTRUCTURE EXPANSION FOR PHASE 1 OF THE NORTHSIDE AGRICULTURE INNOVATION CENTER PROJECT – SUPPLEMENTAL APPROPRIATION – INTERFUND TRANSFER ISSUE:
Award Bid No. 8122 for the Construction for the Northside Agriculture Innovation Center to Marina Landscape, Inc. in the amount of $1,543,887.44 and authorize a supplemental appropriation and interfund transfer of $2,300,000 from the General Fund to complete infrastructure expansion for Phase 1 of the Northside Agriculture Innovation Center project.
RECOMMENDATIONS:
That the City Council:
Award Bid No. 8122 to Marina Landscape, Inc in the amount of $1,543,887.44 for the construction of the Northside Agriculture Innovation Center; Authorize the City Manager, or his designee, to execute the Precise Grading and Landscaping Agreement for Construction with Marina Landscape, Inc. including making any minor, non-substantive changes, and sign all documents necessary for the project; With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a supplemental appropriation and interfund transfer of $2,300,000 from the General Fund available infrastructure reserves to the Capital Outlay Fund, Northside Agriculture Innovation Center Project accounts, to complete Phase 1 infrastructure needs at the Northside Agriculture Innovation Center; and With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a supplemental appropriation of $2,300,000 in the Capital Outlay Fund, Northside Agriculture Innovation Center Project expenditure accounts.
BACKGROUND:
The Northside Agriculture Innovation Center (Northside Ag Center or NAIC) is a community-led initiative that provides land resources and facilities to enable programs that bolsters the regional workforce capacity, fosters innovation, entrepreneurship, and tech-enabled business creation around modern, sustainable agriculture and food production technologies. This multi-phase 8.8-acres project, located at 895 and 900 Clark Street in the City of Riverside, will offer a multitude of agriculture-themed experiential workshops and training programs, as well as agriculture technology start-up creation opportunities and incubation.
The vision of the Northside Ag Center is made possible by a $3,000,000 Urban Greening Grant awarded to the City in 2018 for site acquisition, development, and construction for Phase 1 of the project which includes the following elements: walking trails, 450+ tree plantings, a community garden, facilities for workshops and training, and water and electric utility infrastructure. Grant funds provided for acquisition for 895 and 900 Clark Street in the amount of $1,902,242. The remaining grant balance of $1,097,758 will be utilized for the development and construction of Phase 1 elements. City staff worked with Lamplighter Energy, Inc. (Lamplighter) to complete the Northside Ag Center’s master site design which include architectural and engineering services to produce bid-ready construction documents for Phase 1 elements funded by the Urban Greening Grant.
On April 25, 2023, City Council approved a lease/leaseback agreement with Lamplighter Energy, Inc. (Lamplighter) to construct solar facilities comprised of a solar PV pole barn (later to be built out into a co-work learning center in Phase 2 when additional funding is secured), agrivoltaics, and solar PV greenhouses, collectively generating 750 megawatts of renewable energy. These solar facilities will be designed and constructed by Lamplighter, and will provide facilities to support workshops and workforce training programs, and provide incubation resources for economic development initiatives in the emerging climate resilient agricultural and food production technologies. The engineering and construction of these solar facilities is funded by Lamplighter’s private investments and is valued at $4,200,000. The inclusion of these solar facilities is part of Phase 1 of the Northside Ag Center project.
In the past several months, City staff collaborated with Lamplighter in the master site design process and identified critical infrastructure requirements necessary to enable the completion of Phase 1, which include:
Upgrading 1,800 linear feet of water distribution pipeline from 6 inches (existing) to 12 inches (new) stemming from Chase Road to Clark Street to serve the project site with adequate water flow volume for landscape irrigation, farming operations, and fire safety needs. This upgrade requires engineering and construction, and can be provided by Riverside Public Utilities (RPU) staff. The cost of this water mainline enlargement is estimated to be $1,400,000 and is unfunded; and Fire safety infrastructure including a separate water supply for fire services, three fire hydrants, and fire sprinkler systems inside the greenhouse facilities. The engineering, construction and installation of fire safety infrastructure is estimated to cost $400,000 and is unfunded. The fire safety infrastructure will allow the greenhouse structures to have community spaces to host workshops and trainings, and processing facilities to support onsite farming activities with coolers and produce wash stations; these uses are above and beyond normal crop production activities typical of a greenhouse operation.
To date, the City and stakeholder partners have secured significant funding to build out Phase 1 of the Northside Ag Center as well as funding for programming to take place at the Northside Ag Center upon the completion of Phase 1 construction. The table below provides a summary of funding sources, amounts, and a description of funding uses.
Table 1: Committed Funding Sources for Phase 1
Funding Source,
Committed Amount
Use of Funds
Facilities and Infrastructure
Urban Greening Grant:
$3,000,000
Site acquisition and landscape build out including trails and trees, community garden, basic water and electric utilities Love Tito’s Foundation Block to Block Grant: $32,000
Build out of Nick’s Community Garden
ARPA Allocation for NAIC Infrastructure: $445,000
Water and utilities engineering design
Lamplighter Energy, Inc.:
$4,200,000
Construction of solar facilities including a pole barn, agrivoltaics, and greenhouses UDAG: $422,273
Matching funds for the Urban Greening Grant and master site design services for Phase 1 GrowRiverside Carry Over (General Fund): $129,868
Matching funds for the Urban Greening Grant and master site design services for Phase 1 Programming
FY 2022 Community Projects Fund: $1,000,000
Federal earmark in FY 2022 for tenant improvements inside the greenhouses and acquisition of equipment to facilitate controlled environment agriculture training programs ARPA Agriculture Workforce Development Allocation: $550,000 Agriculture workforce development programming at the Northside Ag Center U.S. Department of Agriculture Southwest Regional Food Business Center: $1,000,000 NAIC to serve as the host site as the Southern California regional business center providing technical assistance to farmers Total: $10,779,141
The total committed funds for infrastructure, facilities, and programming is $10,779,141.
In December 2023, the Northside Ag Center was selected by the Energy Analysis & Environmental Impacts Division at Lawrence Berkeley National Lab (LBNL) to serve as one of five national test beds to participate in a two-year U.S. Department of Energy funded controlled environment agriculture (CEA) market accelerator initiative. The Northside Ag Center’s forthcoming facilities and programs in CEA will inform LBNL’s development of a national CEA accelerator toolkit with input from the technologies contributing to water and energy efficiencies modeled at the Northside Ag Center.
DISCUSSION:
The completion of Phase 1 includes fully expending Urban Greening Grant funds to install the project’s hardscape and greenspace elements by March 1, 2025, and the construction of solar facilities by Lamplighter in the first half of 2025. With the completion of Phase 1, the City and stakeholder partners are then able execute on $2.55 million of programmatic funds listed in Table 1.
Staff is recommending approval of the Construction Agreement with Marina Landscape, Inc. in the amount of $1,543,887.44 to construct the green scape and landscape elements the City is obligated to complete as a recipient of the awarded Urban Greening Grant. The amount available from the Urban Greening Grant is $1,044,000. There remains a funding gap in the amount of approximately $500,000 of which a supplemental appropriation is being requested to fill the gap. This funding gap is the result of increased labor and material costs over the past six years since the original project budget that was developed in 2018.
City staff would also like to request additional supplemental appropriations from the General Fund for critical infrastructure needs to complete Phase 1 of the Northside Agriculture Innovation Center to provide for necessary water infrastructure and fire safety requirements to support operational activities at the Northside Ag Center, which are summarized in Table 2 below.
Table 2: Unfunded Critical Infrastructure Gaps
Critical Infrastructure Need
Description of Need
Funding Status
Water Mainline Expansion
Estimated cost for installation and construction of 1,800 linear feet of water mainline enlargement from the current 6-inch line to a new 12-inch line to support Northside Ag Center operational activities and provide sufficient water flow for fire safety systems. $1,400,000 Unfunded
Fire Safety Infrastructure
Estimated cost for engineering and installation of fire safety infrastructure including fire water lines, hydrants, and sprinkler systems inside greenhouses. $400,000 Unfunded
Bid Gap
Balance of unfunded hardscape and green scape elements to complete obligations under the Urban Greening Grant resulting from increased labor and material costs. $500,000 Unfunded
Total
$2,300,000 Unfunded
Staff is requesting a supplemental appropriation request of $2,300,000 for critical infrastructure expansion needed in Phase 1 of the Northside Ag Center project. Without the supplemental appropriation, the site will not have adequate water flow to support farming operations and fire safety infrastructure, which can delay occupancy of the greenhouse structures. In turn, programmatic funding for onsite training programs will not able to be deployed within funder spending deadlines.
Request for Bid (RFB) No. 8122 was posted on the City’s online bidding system, Plant Bids, on October 4, 2024, seeking prospective bidders to provide precise grading and landscaping for the Northside Agricultural Innovation Center for Phase 1 elements funded by the Urban Greening Grant. The notification was sent to 625 City of Riverside vendors and 500 external vendors. With 43 prospective bidders, RFB 8122 closed on October 29, 2024, with a total of 3 responses. Two responses were found to be responsive and responsible, with one bidder being nonresponsive for not having the required CSLB license.
VENDOR
LOCATION
TOTAL BASE BID COST
Marina Landscape Inc
Orange
$1,543,887.44
H L Hitchcock Construction Inc
Rancho Cucamonga
$1,699,901.45
Zusser Company, Inc*
Los Angeles
$1,971,741.50
*Nonresponsive vendor
Purchasing Resolution 24101, Section 508 Awards states, “Contracts procured through Formal Procurement shall be awarded by the Awarding Entity to the Lowest Responsive and Responsible Bidder.” The Purchasing Manager concurs that the recommended actions are in accordance with Purchasing Resolution 24101.
STRATEGIC PLAN ALIGNMENT:
The build out of Phase 1 of the Northside Agriculture Innovation Center enables a variety of programs and community engagement events at the project site; the site’s elements completed in Phase 1 contributes to the following Strategic Priorities and Goals:
Arts, Culture and Recreation: Provide diverse community experiences and personal enrichment opportunities for people of all ages.
Goal 1.5: Support programs and amenities to further develop literacy, health, and education of children, youth, and seniors throughout the community.
Economic Opportunity: Champion a thriving, enduring economy that provides opportunity for all.
Goal 3.1: Facilitate partnerships and programs to develop, attract and retain innovative business sectors.
Goal 3.2: Work with key partners in implementing workforce development programs and initiatives that connect local workers with high quality employment opportunities and provide access to education and training in Riverside.
Goal 3.3: Cultivate a business climate that welcomes innovation, entrepreneurship, and investment.
Goal 3.4: Collaborate with key partners to implement policies and programs that promote local business growth and ensure equitable opportunities for all.
Goal 3.5: Lead public-private partnerships to build resources and grow the capacity of the local food system.
Environmental Stewardship: Champion proactive and equitable climate solutions based in science to ensure clean air, safe water, a vibrant natural world, and a resilient new green economy for current and future generations.
Goal 4.5: Maintain and conserve 30% of Riverside’s natural lands in green space including, but not limited to, agricultural lands and urban forests to protect and restore Riverside’s rich biodiversity and accelerate the natural removal of carbon, furthering our community’s climate resilience.
Infrastructure, Mobility & Connectivity: Ensure safe, reliable infrastructure that benefits the community and facilitates connection between people, place and information.
Goal 6.2: Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
Northside Agriculture Innovation Center aligns with each of the five Cross-Cutting Threads as follows:
1. Community Trust – The concept of the Northside Agriculture Innovation Center has been developed in collaboration with and is driven by community members and food systems stakeholders. As a community-based project, delivery of an agriculture workforce training program at the Northside Center reflects a sustainable approach to achieving food systems priorities through education, employment and training, environmental stewardship, and increasing food resiliency.
2. Equity – The reach and minimal cost to access the proposed workforce programs at the Northside Agriculture Innovation Center benefit the entire community by enhancing placed-based programs for underrepresented individuals, and the project itself is in an underserved community.
3. Fiscal Responsibility – The proposal for the agriculture workforce programs by Five Keys demonstrate a path forward to achieving sustainable stewardship of the amenities at the Northside Agriculture Innovation Center.
4. Innovation – The Northside Agriculture Innovation Center will be a regional flagship urban center demonstrating climate-smart technologies in agriculture. The training programs demonstrate how private, public, and non-profit collaboration brings about innovation with outside-the-box approaches to address a multitude of concurrent challenges and opportunities in the region’s food ecosystem resiliency and related workforce development efforts.
5. Sustainability & Resiliency – The project transforms over eight acres of open space into an urban greening project with multiple benefits to achieve a triple bottom line: spurring economic opportunities by providing workforce training and new farmer and ag tech incubation; increasing food access and community resources in an underserved community; and the responsible stewardship of natural resources demonstrating multiple benefits.
FISCAL IMPACT:
The total fiscal impact of this action is $3,848,887.44 related to the contract award amount of $1,548,887.44 and the supplemental appropriation of $2,300,000. Upon Council approval of the supplemental appropriation and interfund transfer, an increase in the Northside Agriculture Innovation Center Project account will be recorded as outlined in the table below. There are sufficient General Fund infrastructure reserves to cover the supplemental appropriation for the interfund transfer.
Table 1. Supplemental Appropriation/Interfund Transfer
Fund
Program/Project
Account
Amount
General Fund
Transfers Out
7223600-990401
$2,300,000
Capital Outlay
Transfer In
9339170-985101
$2,300,000
Northside Agriculture Innovation Center
9339170-440301
$2,300,000
Prepared by: Joyce Jong, Sr. Project Manager
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Jack Liu, Interim City Attorney
Attachments:
Bid No. 8122 Award Recommendation
Presentation
Precise Grading and Landscaping Agreement for Construction for the Northside Agriculture Innovation Center