TITLE
Recommendation to authorize City Manager to execute the Eighth Amendment to Contract No. 31687 with Bellingham Marine Industries, Inc., for an additional $1,760,678, plus a $88,034 contingency, for a total increase of $1,848,712, for Phase 4 of the Alamitos Bay Marina rebuild project, and an additional $72,000 for as needed standby, for a revised contract amount not to exceed $41,431,007; execute all documents necessary to complete Phase 4 of the project; and increase appropriations in the Marina Fund (TF 403) in the Parks, Recreation and Marine Department (PR) by $1,594,359. (District 3)
DISCUSSION
In February 2010, the City of Long Beach (City) embarked on the rebuild of the Alamitos Bay Marina (ABM). Through the Request for Proposal process, the City selected Bellingham Marine Industries, Inc. (BMI), for the design, engineering, and construction of the project. Due to the magnitude of the ABM rebuild project, the Department of Parks, Recreation and Marine (PRM) and BMI agreed to segregate each basin rebuild into phases. To date, Basin 4 (Phase 1) has been completed, Basin 1 (Phase 2) has been completed, and Basin 5 (Phase 3) was completed on March 27,2014.
Phase 4 consists of the electrical infrastructure upgrade for Basins 2 and 3. In order to comply with Southern California Edison (SCE) mandates for new construction, the City is required to upgrade the current 4,000-volt system to a 12,000-volt system. This will include the installation of conduit and needed equipment from the docks, public restrooms, and restaurants located in Basins 2 and 3 to SCE's main feed at the end of the property line. SCE will install the needed transformers and additional equipment that will power this portion of the marina, along with the surrounding commercial area, which includes Whole Foods and Marina Pacifica.
These upgrades were completed for Basins 1, 4, and 5 during the reconstruction process and must now be completed for Basins 2 and 3 prior to any in-water construction. This process will take approximately four months upon execution of the amended contract.
In order to avoid incurring costs resulting from BMI demobilizing the staging area and remobilizing upon approval of the next phase of the ABM Rebuild, the City has placed BMI on standby at a cost of $18,000 per month. Pending execution of the amended contract, PRM anticipates making a standby payment for the month of April 2014. The remainder of the requested standby funding will allow PRM the flexibility to again place BMI on standby on an as-needed basis should there be a gap between the completion of Phase 4 and approval of the next phase.
This matter was reviewed by Deputy City Attorney Kendra L. Carney on April 1, 2014, and by Budget Management Officer Victoria Bell on April 2,2014.
TIMING CONSIDERATIONS
City Council action is requested on April 15, 2014, in order to amend Contract No. 31687 with Bellingham Marine Industries, Inc., and provide BMI with contract authority to ensure the continued progress of the project and limit standby expenditures.
FISCAL IMPACT
The estimated cost of Phase 4 is $1,848,712, plus $273,647 estimated for permits, inspection, and construction management, requiring a BMI contract increase of $1,848,712. An additional $72,000 contract increase is requested for as-needed standby pay, for an overall contract increase of $1,920,712. Authorization for the expense is requested through an appropriation increase of $1,594,359 in the Marina Fund (TF 403) in the Parks, Recreation and Marine Department (PR). The estimated cost of Phase 4 will be funded by surplus operating revenue that is expected to be generated by normal marina operations in FY14, and the reallocation of $600,000 in savings realized in the Marina Fund (TF 403) from the project budgets for Basins 1 and 4. Additional phases of the ABM rebuild will be subject to funding availability. The recommended action will result in a positive impact on jobs. Approximately 30 jobs will be created during the course of this phase.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
GEORGE CHAPJIAN
DIRECTOR OF PARKS, RECREATION AND MARINE
JOHN GROSS
DIRECTOR FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER