TITLE
Recommendation to authorize City Manager to amend Contract No. 31687 with Bellingham Marine Industries, Inc., for an additional $6,430,000 for expenditures associated with Phase 1B of the Alamitos Bay Marina rebuild project; and execute all documents necessary to complete the final design, engineering, and construction of Basin 4 in the Alamitos Bay Marina, for a revised contract amount not to exceed $18,230,000. (District 3)
DISCUSSION
On February 16, 2010, the City Council authorized the City Manager to enter into a design-build contract with Bellingham Marine Industries, Inc. (Bellingham), for the design, engineering, and construction of Basin 4 in the Alamitos Bay Marina, in an amount not to exceed $11,800,000 (Attachment). The City of Long Beach and Bellingham subsequently entered into Contract No. 31687 on June 28, 2010.
Due to the magnitude of the Alamitos Bay Marina rebuild project, the Department of Parks, Recreation and Marine (PRM) and Bellingham agreed to segregate each basin rebuild into phases. The first phase was then segregated into two phases, Phase 1A and Phase 1B. Phase 1A includes all in-water work for Basin 4 and the longdock surrounding the Long Beach Yacht Club. Phase 1B includes all land-based construction of Basin 4, and the construction of an eelgrass mitigation area in Marine Stadium, as required by a policy set forth by the National Oceanic and Atmospheric Administration. Contract No. 31687, as approved by the City Council on February 16, 2010, included Phase 1A only.
At this time, PRM is requesting authorization to amend Contract No. 31687 to include the design, engineering, and construction required under Phase 1B. The estimated cost for Phase 1B is $6,430,000.
The total Bellingham costs for Phases 1A and 1B are estimated at $18,230,000, and will be funded utilizing a combination of DBW loan funds totaling $18,220,000, and $6,200,000 budgeted in the Marina Fund. The $24,420,000 currently available for the rebuild project will cover the cost of this Bellingham contract, plus the project costs incurred to date, including the cost of the Environmental Impact Review, and design, engineering, project management, and permitting costs to date.
The following reflects the changes to the major provisions of the proposed amendment:
· Scope of Work: For Basin 4: Design, engineering, and construction of a marina dock system; upgrading of the dock system to a state-of-the-art concrete system; upgrading marina utility services; upgrading and replacing the boatowner restroom; dredging the marina to the original design depth; repairing marina seawalls, as needed; and construction of an eelgrass mitigation area.
· Compensation: Bellingham will receive compensation of $18,230,000, which will be paid throughout the contract as design, engineering, and construction milestones are met.
All other provisions of Contract No. 31687 remain the same.
This matter was reviewed by Deputy City Attorney Gary J. Anderson on July 15, 2011, and Budget Management Officer Victoria Bell on March 4, 2011.
TIMING CONSIDERATIONS
City Council action is requested on August 9, 2011, in order to amend Contract No. 31687 with Bellingham Marine Industries, Inc., so that they may complete the design, engineering, and construction of Basin 4 in the Alamitos Bay Marina, as well as the requisite eelgrass mitigation area.
FISCAL IMPACT
The DBW loan is solely borne by the marina enterprise through a gross pledge of marina revenue (slip and concession fees). There will be no impact to the General Fund associated with the proposed recommendation. The combination of an $18,220,000 loan from DBW and $6,200,000 currently budgeted in the Marina Fund will fully fund the final design, engineering, and construction of Basin 4, the construction of an eelgrass mitigation area in Marine Stadium, and all other costs associated with Phase 1A and Phase 1B. The recommended action will result in a positive impact on jobs. Approximately 100 jobs will be created to complete this project.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
GEORGE CHAPJIAN
DIRECTOR OF PARKS, RECREATION AND MARINE
APPROVED:
PATRICK H. WEST
CITY MANAGER