June 24, 2025
DocID #46179v1
Economic Development
PORT
DATE: June 24, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Charles Gerard, Port Director
Subject:
Resolution to Contract for 2025 Dredging at Terminal 2, Berth’s 7 and 8 of Point Potrero Marine Terminal, and the Marina Bay Yacht Harbor
FINANCIAL IMPACT: The proposed expenditure of $5,800,000 is budgeted in the Fiscal Year 2025-2026 budgets for the Port and
Marina. (Account Strings: Port: 40163080 400642-36020
and 40163080 400642-36022
Marina Fund: 40583080 – 400642 – 36021)
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
The Port of Richmond is seeking adoption of a resolution authorizing the City Manager or their designee to execute a contract required to perform maintenance dredging at
Terminal 2, the Point Potrero Marine Terminal Berths 7 and 8, and the Marina Bay Yacht Harbor after completion of the procurement process. This contract needs to be signed
during the City Council recess to execute the work on time within 2025.
RECOMMENDED ACTION: ADOPT a resolution and AUTHORIZE the city manager or their designee to execute a contract agreement of up to $5.8 million with the lowest, responsive, and
responsible bidder for maintenance dredging at Terminal 2, the Point Potrero Marine Terminal Berths 7 and 8, and the Marina Bay Yacht Harbor, for a term ending June 30, 2026 - Economic Development Department/Port (Charles
Gerard 510-620-6792).
DISCUSSION:
AGENDA
REPORT
June 24, 2025
DocID #46179v1
Maintenance dredging is an important responsibility for a deep-water port to be efficient in its operations. Port dredging involves scooping sedimentation that fills the terminal berth areas and limits the depth of water.
In late 2024, the Port of Richmond issued a Request for Proposals (RFP) to retain consultants for technical studies required to obtain permits for maintenance dredging at three sites: Terminal 2, the Point Potrero Marine Terminal (PPMT) Berths 7 and 8, and the Marina Bay Yacht Harbor (MBYH). Permitting efforts began in the first quarter of 2025, and staff anticipate securing all necessary permits by August 2025. The dredging permits are being obtained from the U.S. Army Corps of Engineers, the San Francisco Bay Conservation and Development Commission (BCDC), and the California State Water Resources Control Board.
Terminals 2 and the PPMT berths are leased to AAK USA Richmond Corp (AAK) and Auto Warehousing Company (AWC), respectively. Under the terms of these leases, the Port is responsible for maintaining the berthing areas at depths between 33 and 35 feet at Mean Lower Low Water (MLLW). However, a recent hydrographic survey revealed that current depths have fallen significantly below 33 feet, limiting the ability of ships to access the terminals and negatively impacting the Port’s business. Dredging is required to restore the berthing areas to the necessary depths.
In addition, the Marina Bay Yacht Harbor requires a channel depth of 12 feet at MLLW.
Currently, depths are less than 12 feet compromising the harbor’s ability to serve its marina community. Dredging is required to restore the channel to the necessary depths.
Due to the City Council’s summer recess and the urgency of completing dredging to support Port operations, City staff is seeking City Council adoption of a resolution authorizing the City Manager or their designee to execute a contract agreement, following completion of the City’s bidding and procurement process. Final permits from state and federal agencies are expected by August 2025, with dredging anticipated to begin in September and conclude by November 2025.
The estimated cost of the dredging work is as follows:
Component Estimated Cost
Terminal 7 & 8 Dredging and Transport $2,100,000
Terminal 2 Dredging and Transport $1,100,000
MBYH Dredging and Transport $2,500,000
Contingency Allowance $100,000
June 24, 2025
DocID #46179v1
Component Estimated Cost
Total Estimated Cost $5,800,000
The Port will fund the dredging work at Terminals 2, and PPMT Berths 7 and 8. The Marina fund will fund the dredging at Marina Bay Yacht Harbor.
The project will be publicly advertised for bids over a four-week period. Provided the lowest responsive and responsible bid, as deemed by the City Manager or their designee(s) is within the available budget, the City Manager or their designee will proceed with awarding and executing the contract.
SYNERGISTIC POLICIES:
This project aligns with Strategic Goal Area 2: Revitalization of the Port. The dredging process will fulfill our leasing contract requirements for keeping our deep-water port maintained, which is aligned with the City's long-term operational and maintenance strategies. The dredging project will help ensure alignment with both federal and state regulatory compliance and economic development goals of continued revenue for the Port.
ENVIRONMENTAL REVIEW:
As this is maintenance work, the project is exempt from the California Environmental Quality Act.
DOCUMENTS ATTACHED:
Attachment 1 - Resolution