DATE: May 19, 2020
SUBJECT:
Title
PRESENTATION ON UNSOLICITED PROPOSAL FOR DEVELOPMENT OF A SHIPYARD REPAIR FACILITY AT NATIONAL CITY MARINE TERMINAL AND DIRECTION TO STAFF
Body
EXECUTIVE SUMMARY:
In January 2020, staff received an unsolicited proposal from Austal USA (Austal) for the proposed operation of a Littoral Combat Ship 2 Class Vessel (LCS-2) servicing and repair facility in support of the United States Navy (USN) at National City Marine Terminal (NCMT). Shortly thereafter, several of the working waterfront tenants and others in the industry expressed interest in the proposal. Staff has also received feedback from other stakeholders, including labor representatives, environmental groups, and the community.
In April 2020, staff was given guidance from the Board on items of main interest when returning to the Board with a full report on the proposal. This report will cover the following areas:
1. Analysis and review of capacity requirements of San Diego Shipyards in support of USN homeport fleet in San Diego;
2. Feedback received during stakeholder outreach;
3. Evaluation of the potential impacts on terminal operations and existing tenants;
4. Preliminary assessment of site feasibility; and
5. Analysis of sites reviewed within the District.
Staff is seeking Board input and direction on the next steps, which may include but is not limited to:
a. Waive Board of District Commissioners Policy No. 360, Request for Proposal (BPC No. 360), and direct staff to negotiate an Exclusive Negotiating Agreement (ENA) with Austal for the development of a ship repair facility at NCMT berth 24-1;
b. Direct staff to return to the Board at a future date with a recommendation for a Request for Proposals (RFP) pursuant to BPC No. 360 for a ship repair facility at NCMT berth 24-1 or another site;
c. Reject the unsolicited proposal of a ship repair facility at berth 24-1 at NCMT; and/or
d. Direct staff to return with additional analysis and review of alternative site(...
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