ITEM TITLE:
Discussion Item: Valdez New Boat Harbor (VNBH) - Consideration of Procurement Options for Remaining Work, Including a Change Order Option in the Amount of $1.75 Million
SUBMITTED BY: Jason Miles, PE, Capital Facilities Director
FISCAL NOTES:
Expenditure Required: $1,750,000 with Approval of Change Order
Unencumbered Balance: $31,440,562
Funding Source: 310-6450-58000
RECOMMENDATION:
Staff recommends Option 1 as discussed in Memo 2 from Arcadis included herein, a single bid package for the remaining VNBH development work.
SUMMARY STATEMENT:
The harbor project team has thoroughly vetted multiple options to move forward with the next phase(s) of the project. One of the options we have carefully considered is a change order to the Phase 1 contractor, Harris Sand & Gravel, to drill, blast and excavate the west rock area to expedite future installation of the floating docks and associated in-water development. This would likely allow the City to open the harbor a season sooner, and there is the potential for substantial cost savings to the project. However, the confidential legal memo from the City Attorney, provided separately to City Council, indicates that a potential legal challenge of the change order as the selected procurement option could pose significant risk to the City. As such, Staff does not recommend approval of a change order to Harris Sand & Gravel in the amount of $1.75 million based on the heightened risk versus potential benefit to the City.
Staff recommends approval of Option 1 as discussed in Memo 2 from Arcadis included herein, a single bid package for the remaining VNBH development work.
Included in the Council package are the following items for consideration:
1. Memo 1 from Arcadis explaining the cost proposal Pages 1-2
2. Cost proposal from HS&G, dated October 26, 2016 Pages 3-4
3. Memo 2 from Arcadis explaining procurement options & pros/cons Pages 5-8
4. Schedule options associated with Memo 2 from Arcadis Page 9
5. Sketch plan of the west rock area Page 10
6. RFP #20 - scope of work for the proposed change order Pages 11-12