July 11, 2023
Public Works
DATE: July 11, 2023
TO: Mayor Martinez and Members of the City Council
FROM Daniel Chavarria, Director of Public Works
Nannette Beacham, Director of Economic Development
SUBJECT:
Terminal 4 Wharf Removal Grant and Construction
Contract Amendment
FINANCIAL IMPACT: The City has received $6,930,439 in total grant funds for the Terminal 4 Wharf Removal Project and was recently
awarded a $2,300,000 grant augmentation from the San
Francisco Bay Restoration Authority to complete the
project. No impact to the General Fund will occur as a result of this grant augmentation and contract
amendment.
PREVIOUS COUNCIL
ACTION:
March 16, 2021; May 2, 2023
STATEMENT OF THE
ISSUE:
The San Francisco Bay Restoration Authority approved a
grant augmentation of $2,300,000 for the Terminal 4
Wharf Removal Project. These funds would augment the
$2,300,000 in funds they previously awarded the project.
City staff is seeking City Council approval to accept and appropriate the grant funds, including authorizing the City Manager to execute any necessary grant documents and
to amend the construction agreement with Silverado
Contractor’s Inc. to include the Alternative B.
AGENDA
REPORT
July 11, 2023
RECOMMENDED ACTION:
AUTHORIZE the City Manager or designee to execute
the necessary agreements with the State Coastal
Conservancy to accept the additional $2,300,000 in
grants funds; APPROPRIATE the grant funds, once
awarded and funding agreement is executed;
AUTHORIZE the execution of an amendment to the
construction agreement with Silverado Contractor’s, Inc. to add the Alternative “B” scope from the Bid in the
amount of $2,067,900, for a new construction agreement
total of $7,365,826; and AUTHORIZE the Director of
Public Works to approve change orders, if necessary, for up to a new total construction contingency amount of
$736,582 – Public Works Department/Economic
Development (Daniel Chavarria 510-620-5478/Nannette
Beachman 510-621-1306).
DISCUSSION:
The Terminal Four Wharf Removal project consists of completing construction documents, derelict pilings demolition, removing decking, demolishing two buildings, and constructing enhanced rock slope protection, as well as monitoring at Terminal Four located at Point San Pablo, north of Point Molate.
The project is needed because the deteriorating warehouse, piles, decking, and debris of Terminal Four Wharf currently poses a marine debris problem, a navigation hazard, and continues to degrade and impair water and habitat quality. A key aspect of this project is that it will remove the environmentally hazardous creosote-treated wooden pilings from the San Francisco Bay.
The Terminal Four site is owned by the City of Richmond and is managed by the City’s Port. The site is located on the western shore of Richmond, California, approximately
2.5 miles northwest of the eastern end of the Richmond-San Rafael Bridge, and just south of the tip of Point San Pablo.
The City has been planning the removal of the creosote-treated piles, deteriorated wharf decking, and structures at the Terminal Four site for a number of years. The State Coastal Conservancy (SCC) has provided support and assistance with this project since 2017, primarily through facilitating funding and taking the lead on early design and environmental review. The City will be carrying out the implementation of the Terminal Four Wharf Removal Project as the property owner.
On May 2, 2023, following a competitive bidding process, the City Council awarded a construction agreement with Silverado Contractor’s Inc. in an amount not to exceed $5,297,926 including Base Bid and Alternate “A”, and authorized the Public Works Director to approve change orders, if necessary, for up-to a contingency amount of $529,800. The Bid included an Alternative “B” that required additional funding
July 11, 2023
(Attachment 3). City staff has been working with the San Francisco Bay Restoration Authority (SFBRA) to seek an augmentation to the City’s previously approved grant to complete the project since the bids came in greater than previously anticipated. The SFBRA approved a $2,300,000 augmentation, for a total grant amount of $4,600,000.
The additional funds will allow the City to modify the construction agreement to include Alternative “B” in the amount of $2,067,900 and complete full implementation of the project avoiding the need to revise or eliminate components of the project. Therefore, City staff is seeking City Council approval to accept and appropriate the additional $2,300,000 grant funds, including authorizing the City Manager to execute any necessary grant documents and to amend the construction agreement with Silverado Contractor’s Inc. to include Alternative “B” (Attachment 1), and authorize the Director of Public Works to approve change orders, if necessary, for up to a new total construction contingency amount of $736,582.
Below is a Summary Table of the Bids Components, Related Costs, and Grant Funds:
Scope Cost
Base Bid & Alt. A (Awarded) $5,297,926
Alt. B (Proposed) $2,067,900
TOTAL $7,365,826
10% Contingency $736,582
TOTAL with 10% contingency $8,102,408
Grant Secured Amount
Funds raised to Date $6,930,439
New SFBRA Funds $2,300,000
TOTAL Funds $9,230,439
Other costs related to this project include design consulting services and construction management consulting services.
Environmental Documentation
On November 19, 2020, the State Coastal Conservancy (SCC), as lead agency under the California Environmental Quality Act (“CEQA”), adopted a final mitigated negative declaration for the project titled the Terminal Four Wharf, Warehouse, and Piling Removal Project Initial Study and Mitigated Negative Declaration (“MND”). The MND describes the proposed project and provides an assessment of the project’s potential significant adverse impacts on the environment.
The MND concludes that the proposed project will not have any significant effects on the environment after implementation of project design features, conservation measures, avoidance and minimization and mitigation measures, and best management practices. The MND was prepared in accordance with CEQA (Public Resources Code § 21000 et seq.) and the CEQA Guidelines (California Code of Regulations Title 14,
July 11, 2023
section 15000 et seq.). The SCC released the proposed MND for public review on April 9, 2020.
On March 16, 2021, the City Council adopted Resolution No. 30-21 adopting the Final MND and MMRP prepared by the SCC for the Terminal 4 Wharf Removal Project. The Notice of Determination was filed on March 23, 2021.
DOCUMENTS ATTACHED:
Attachment 1 – Construction Agreement Amendment
Attachment 2 – Original Construction Agreement
Attachment 3 – Silverado Bid Package