Title
Recommendation to Authorize the City Manager to Execute Documents Necessary to Implement the Terms of a Two Year Port Services Contract with Bay Ship and Yacht Company at Alameda Point. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Authorize the City Manager to Execute Documents Necessary to Implement the Terms of a Two Year Port Services Contract with Bay Ship and Yacht Co. at Alameda Point
BACKGROUND
In September 2015, the City issued a request for proposals (RFP) from qualified organizations to assist the City in providing port berthing services to vessels owned and operated by the Unites States Department of Transportation, Maritime Administration (MARAD), and to the U.S.S. Hornet Museum (Hornet). Services will consist of management and maintenance services, berthing services, utility connections, boom equipment maintenance, pier and wharf maintenance, parking control, channel surveys, harbor patrols and initial spill response. Port services management are currently provided by National Response Center, Environmental Services (NRC). NRC has been the port manager since it acquired Trident Port Services in 2009.
DISCUSSION
MARAD requires real property for the exclusive, long term, safe layberthing for Ready Reserve Fleet vessels on the California Coast. The City approved a 20-year lease agreement with MARAD for the Alameda Point piers in May 2006. As part of that lease, the City is responsible for providing layberthing services (Exhibit 1).
To solicit the maximum number of bids and most competitive price, the RFP was provided to 21 separate Builders Exchanges throughout the Bay Area. The proposed contract is for a two year term (Exhibit 2). A notice for the RFP was sent out to all the contractors on the Public Works listing, published in the Alameda Journal, and placed on the City's website. Six participants attended the mandatory bid walk for the project held on October 27, 2015. Three firms submitted bids, which were opened on Tuesday, December 8, 2015 and are outlined below.
|
|
|
BID |
|
Bidder: |
Location: |
Monthly Fee |
BOWTS Mgmt Fee |
|
Bay Ship & Yacht Co. |
Alameda, CA |
$ 54,000.00 |
$ - |
|
Patriot Environmental Services |
Wilmington, CA |
$ 53,975.00 |
$ 5,750.00 |
|
TKO Environmental & Marine Services |
Alameda, CA |
$ 36,750.00 |
$ - |
The RFP for layberthing services required applicants to describe their qualifications and approach to port services as well as periodic patrols at the Seaplane Lagoon and FISC wharf. Qualifying applicants had a panel interview. The panel consisted of:
• City staff representative;
• PM Realty representative;
• Cushman & Wakefield representative;
• Moffatt & Nichol Engineering representative; and
• Representative from City of Oakland, Oakland Army Base/Port of Oakland Development Project.
Applicants were asked to make a 20-minute presentation followed by questions from the panel. The panel unanimously scored Bay Ship and Yacht higher than the other applicants. They were impressed with the company’s experience and knowledge of working on older piers. Also, Bay Ship and Yacht will be using a maintenance software to keep track of all the maintenance and services requested and performed, which will allow us to better report our activities to MARAD and keep track of costs.
TKO Environmental & Marine Services (TKO) submitted a bid protect alleging it should have been selected because it was the lowest price bidder. As this is a solicitation for the best qualified bidder and not the lowest price bidder, City staff rejected the bid protest on the grounds that Bay Ship and Yacht had vastly more experience than TKO and that experience outweighed the difference in price.
The current port service agreement costs the city $325,000 annually and the new Bay Ship and Yacht proposal will cost $620,340 annually. However, NRC, the current port manager, will now pay rent for the properties it previously controlled at no-cost as part of the port services agreement. As a result, the difference between the port services expense and rent revenue is a net positive of $105,492 to the City’s Base Reuse Fund. After the interview process, staff reduced the scope of work to exclude management of the Bilge Oily Water Treatment System (BOWTS). The BOWTS operation and services with potential profit sharing with the City will be solicited via a separate RFP. Additional revenue from the BOWTS could also offset the increased cost of port management.
FINANCIAL IMPACT
The budget adjustment has been included in the Fiscal Year (FY) 2015-16 mid-year update. FY 2016-17 Budget will be adjusted as part of mid-cycle update to accommodate the increase in cost and revenue. It is expected that there will be no adverse effect on the Base Reuse Fund Budget. There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action has no impact on the Municipal Code.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15301(c) (Existing Facilities).
RECOMMENDATION
Authorize the City Manager to execute documents necessary to implement the terms of a two -year port services contract with Bay Ship and Yacht Co. at Alameda Point.
Respectfully submitted,
Jennifer Ott, Chief Operating Officer -Alameda Point
By,
Nanette Mocanu, Assistant Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Technical Requirements of MARAD
2. Contract with Bay Ship and Yacht
3. Bay Ship and Yacht Scope of Work and Budget