TITLE
Recommendation to authorize City Manager to execute a Second Amendment to Contract No. 32403 with AIS Construction Company, for an additional $720,000 for maintenance dredging of Harborlight Marina and additional required demolition work at Colorado Lagoon, for a revised contract amount not to exceed $7,720,000; execute all documents necessary to complete the Harborlight Marina dredging project, including a Memorandum of Agreement with the Port of Long Beach for disposal of the dredged material; and increase appropriations in the Tidelands Operations Fund (TF 401) in the Department of Public Works (PW) by $600,000. (Districts 2,3)
DISCUSSION
Company to dredge a portion of the Colorado Lagoon (Phase 1, Part 2: Base Bid). On February 21, 2012, the City Council authorized Amendment No. 1 to Contract No. 32403 with AIS Construction to remove additional contaminated sediment from the Colorado Lagoon's Northern arm. Additional funding was appropriated on February 7, 2012 to demolish the abandoned restroom at the North side of Colorado Lagoon, however, authority to amend the contract is required to complete the work.
On November 17, 2006, the City entered into a lease agreement (Hotel Lease No. 29879) with QW Land Holding Company, LLC, to manage the property formerly known as the Coast Hotel, which is now the Maya Hotel. Based on the existing lease agreement, the City is agreeing to assist with dredging the Water Parcel shown in Exhibit A, commonly known as Harborlight Marina. The Water Parcel is used for embarking and disembarking of passengers on sightseeing and excursion boats and other vessels, and for the temporary mooring or berthing of such vessels and transient yachts. However, current site conditions limit accessibility and make these uses risky due to inadequate water depths. As such, emergency maintenance dredging is required to take advantage of a rare and time sensitive window of opportunity to dispose of the dredged material locally at the Port of Long Beach, which will be used as fill material for the Middle Harbor Project. The Port of Long Beach disposal facility provides a cost-effective and environmentally sensitive option for disposal through June 30, 2012. If this window of opportunity is missed, the dredged material will likely have to be sent to an upland disposal facility, at significantly higher costs. AIS Construction is currently under contract with the City, and has the materials and expertise to immediately perform the necessary dredging. In order for this work to commence, their current contract authority must be increased.
This matter was reviewed by Deputy City Attorney Gary Anderson and by Budget Management Officer Victoria Bell on May 11, 2012.
SUSTAINABILITY
Disposal of the dredged material at the Port of Long Beach Middle Harbor Fill Site is considered a beneficial reuse. The alternative would be to dispose of the material at an upland landfill facility, which would produce greater greenhouse gas emissions as a result of trucking the material.
TIMING CONSIDERATIONS
City Council action on this matter is requested on May 22, 2012 to utilize the Port of Long Beach's available sediment disposal facility. The Port's disposal site is a cost-effective and environmentally sensitive option for disposal through June 30, 2012.
FISCAL IMPACT
The recommended action will increase the total contract amount from $7,000,000 to $7,720,000. Although there is existing budget for the current contract and $120,000 for additional demolition work, an appropriation increase is requested in the Tidelands Operations Fund (TF 401) in the Department of Public Works (PW) for $600,000 utilizing Measure D funds for maintenance dredging of Harborlight Marina. There is no impact to the General Fund and no known local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER