DATE: October 10, 2017
SUBJECT:
Title
RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AWARDING CONTRACT NO. 2017-03R DEMOLITION AND SITE IMPROVEMENTS OF TRANSIT SHED 1 AT TENTH AVENUE MARINE TERMINAL SAN DIEGO, CALIFORNIA TO DICK MILLER, INC. IN THE AMOUNT OF $12,345,678.90 AS AUTHORIZED BY THE BOARD IN THE FY 2014-2018 CAPITAL IMPROVEMENT PROGRAM
Body
EXECUTIVE SUMMARY:
This action will approve plans and specifications and authorize the award of a re-advertised Capital Improvement Program (CIP) construction contract to Dick Miller, Inc. in the amount of $12,345,678.90 for the Demolition and Site Improvements of Transit Shed 1 at Tenth Avenue Marine Terminal. Funding for the project will come from two sources; the District’s CIP and the U.S. Department of Transportation Maritime Administration’s Transportation Investment Generating Economic Recovery (TIGER) Grant Program.
The proposed work will consist of the demolition of an obsolete and underutilized transit shed located adjacent to three of the terminal’s primary vessel berths, disposal and salvage of the transit shed building and components, the excavation, grading and compaction of the areas under the demolished buildings to support a finished pavement, site utility improvements, and stormwater best management practice (BMP) improvements.
On June 28, 2017, the original advertisement of construction contract 2017-03 received bids that were inconsistent with the bid documents, which prompted bid protests. At the August 08, 2017 BPC Meeting, the Board adopted a resolution rejecting all bids, and authorized staff to revise the contract documents to clarify the scope of improvements and re-advertise for new bids. The contract documents were re-advertised on August 10, 2017. On September 06, 2017, seven (7) bids were received ranging in cost from $12,345,678.90 to $14,314,400.00. The apparent lowest responsive and responsible bid was submitted by Dick Miller, Inc. in the amount of $12,345,678.90. Award to this bidder is recommended.
RECOMMENDATION:
Adopt a resolution approving plans and specifications and awarding Contract No. 2017-03R to Dick Miller, Inc. in the amount of $12,345,678.90 for the Demolition and Site Improvements of Transit Shed 1 at Tenth Avenue Marine Terminal Project as authorized by the Board in the FY2014-2018 CIP.
FISCAL IMPACT:
The Tenth Avenue Marine Terminal Transit Shed Demolition & Initial Rail Component - TIGER Grant Project has a budget of $24M, consisting of the $10M TIGER Grant and the District’s match of $14M. Contract 2017-03R Demolition and Site Improvements of Transit Shed 1 at Tenth Avenue Marine Terminal is the first of three (3) contract packages that are under the overall Tenth Avenue Marine Terminal Transit Shed Demolition & Initial Rail Component - TIGER Grant Project. The current construction contract, Contract 2017-03R, addresses a major component of the overall TIGER Grant Project, as reflected in the $13M Engineer’s Estimate.
This multi-year project is included in the approved FY 2014 - 2018 CIP with a total project budget of $24,000,000. Approval of this agenda item will authorize the expenditure of $12,345,678.90. An appropriation of $8,550,000 was included in the FY 17/18 budget. Additional funds will be requested in FY 18/19 to continue the project. If the expenditures are not budgeted in FY 18/19, the contract would have to be terminated by the District.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A thriving and modern maritime seaport.
DISCUSSION:
Bid Specification No. 2017-03R Demolition and Site Improvements of Transit Shed 1 at Tenth Avenue Marine Terminal is the first of three (3) construction contract packages that provide improvements for the overall TAMT Transit Shed Demolition & Initial Rail Component - TIGER Grant Project. The second and third contract packages will be presented to the Board for award in the future; the second approximately March 2018 and the third approximately December 2018.
The scope of the Demolition and Site Improvements of Transit Shed 1 at Tenth Avenue Marine Terminal consists of the demolition of an obsolete and underutilized transit shed located adjacent to three of the terminal’s eight primary vessel berths, disposal and salvage of the transit shed building and components, the excavation, grading and compaction of the areas under the demolished buildings to support new pavement, site utility improvements, and stormwater BMP improvements. This work will take place over an approximate 13-month period. The Engineer’s Estimate for this contract was $13M.
The bid re-advertisement period for this contract began on August 10, 2017, with a bidding duration of 26 calendar days. The following bids were received for Contract No. 2017-03R (Drawing No. TA-2017-01), Project No. CP-0016-02 on the bid opening date.
On September 5, 2017, seven (7) bids were received ranging in bid amounts from $12,345,678.90 to $14,314,400.00. The bid amounts are shown in the table below:

The apparent lowest responsive and responsible bid was submitted by Dick Miller, Inc. in the amount of $12,345,678.90. Award to this bidder is recommended.
Upon Board authorization, this project is expected to commence in November 2017 and will be completed approximately December 2018.
Staff recommends that the Board approve the plans and specifications and award Contract No. 2017-03R to Dick Miller, Inc. in the amount of $12,345,678.90 for the construction of the Demolition and Site Improvements of Transit Shed 1 at Tenth Avenue Marine Terminal project.
General Counsel’s Comments:
The Office of the General Counsel has reviewed the bid specification and responses and approves the award to Dick Miller, Inc as to form and legality.
Environmental Review:
The proposed Board actions would authorize award of a construction contract and approve plans and specifications for the demolition and site improvements of Transit Shed #1 at the Tenth Avenue Marine Terminal. The District previously approved the Final EIR for the TAMT Redevelopment Plan and Demolition and Initial Rail Component Project. The potential environmental impacts of the Project were analyzed in the Final EIR that was certified by the Board on December 13, 2016, Resolution No. 2016-199. Pursuant to State California Environmental Quality Act (CEQA) Guidelines Section 15164, the District subsequently prepared an Addendum to address increasing the modular office building from 3,600 square feet to 5,000 square feet, increasing the size of the support structure from 782 square feet to 1,800 square feet and removing the 850 square-foot outdoor storage area, and adding an additional 780 square foot support structure in the southern portion of the terminal. The Addendum also analyzed two new stormwater BMP pass-through-filtration systems, conduit and electrical improvements associated with the updated project design, eliminating the third airbrake system that was sited along the terminals northeastern boundary, adding a 50-square foot equipment enclosure to house the rail track lubrication system, and excavating 86,700 cubic yards of soil. The Addendum served as the environmental review to amend the Non-appealable Coastal Development Permit (CDP) for development of the Project. The District certified the Addendum on July 11, 2017, Resolution No. 2017-100. District staff has reviewed the proposed actions and has found them consistent with the Project analyzed in the Final EIR and Addendum. The proposed Board actions are not a separate “project” for CEQA purposes but are subsequent discretionary approvals related to a previously approved project. (CEQA Guidelines § 15378(c); Van de Kamps Coalition v. Board of Trustees of Los Angeles Comm. College Dist. (2012) 206 Cal.App.4th 1036.) Accordingly, the proposed Board actions are merely a step in furtherance of the original Project for which environmental review was performed and no further environmental review is required.
In addition, the proposed Board actions comply with Section 87 of the Port Act, which allows for the establishment, improvement, and conduct of a harbor, and for the construction, reconstruction, repair, maintenance, and operation of wharves, docks, piers, slips, quays, and all other works, buildings, facilities, utilities, structures, and appliances incidental, necessary, or convenient, for the promotion and accommodation of commerce and navigation. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board actions are consistent with the Public Trust Doctrine.
Finally, on July 11, 2017, the District authorized issuance of an Amendment to the non-Appealable CDP (CDP-2016-09) to allow for development of the TAMT Demolition and Initial Rail Component Project based on the project’s final engineering design for Phase I, which includes demolition of Transit Shed #1 and Transit Shed #2, conduit and electrical improvements, subsurface stormwater improvements, replacement of existing lighting, on-terminal rail facility upgrades, and installation of a temporary modular office, a building with an electrical gear room, additional restroom facilities, and IT room, and outdoor storage space (collectively, "Project"), located at the Tenth Avenue Marine Terminal at 850 Water Street in the city of San Diego. District staff has reviewed the Board actions and has found them consistent with the CDP. No additional action under the District’s CDP Regulations is required.
Equal Opportunity Program:
A 12% Small Business Enterprise (SBE) goal was established for this opportunity. Dick Miller, Inc., is an SBE and listed five SBE subcontractors. The SBE participation is 78%.
PREPARED BY:
Rudy Zelaya
Assistant Engineer, Engineering-Construction
Attachment(s):
Attachment A: Tabulation of Bids