8g. Memo

P69 Underdock Utility Replacement Project

AGENDA MEMORANDUM                        Item No.          8g 
ACTION ITEM                            Date of Meeting       March 8, 2022 
DATE:     February 28, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Nick Milos, Manager Corporate Facilities 
Rod Jackson, Capital Project Manager 
SUBJECT:  P69 Underdock Utility Replacement  Irregular Bid (CIP #801102) (Short Form) 
Amount of this request:                 $350,000 
Total estimated project cost:          $3,800,000 
Request Commission authorization for the Executive Director to award and execute a
construction contract to the low bidder for the P69 Underdock Utility Replacement project due
to an irregular bid outcome for the three bids submitted, and to increase the project budget in
the amount of $350,000 to fund the irregular bid outcome. 
The amount of this request is $350,000 for a total estimated project cost not to exceed
This request is for authorization to proceed with awarding and executing a construction contract
on an irregular bid as required by Resolution No. 3605 Paragraph Three bids were
received in response to the construction advertisement which qualifies the bids as irregular.
Additionally, the lowest bid came in 10.7% over the engineer's estimate which also qualifies the
bid as irregular. The bid received was $2,585,864 which is $251,864 over the engineers estimate
of $2,334,000. The additional funds requested in this action will be used to cover the difference
of the bid amount and to ensure funds are available for project contingency. 
The recommendation is to accept the low bid. The low bidder (Derian Inc.) is a certified Prime
Contractor, a Women and Minority Business Enterprise (WMBE), and a Disadvantaged Business
Enterprise (DBE). Acceptance of the low bid would exceed the project goal of 10% WMBE
The project scope has been value engineered during the planning and design process to balance
the underdock utilities needs for daily operation versus the longevity of the systems. Rejecting
this current bid would further delay the needed replacements and upgrades and will incur

Template revised April 12, 2018.

COMMISSION AGENDA  Action Item No. 8g                                   Page 2 of 2 
Meeting Date: March 8, 2022 
significant additional costs required to readvertise the project that may not result in any
additional bids or in lower bids. 
The P69 Underdock Utilities and associated on-dock utilities such as domestic water, fire
protection water, electrical power/shore power, communications, and sanitary sewer systems at
Pier 69 are vital to building and dock operations for both the Port and our tenants. Most of these
utilities are approaching 30 years of age, well exceeding the typical 20-year design service life.
This project would replace the aging utilities. The replacement systems are designed to provide
reliable services for the next 30 years. This funding request will allow the construction phase to
begin. The target date for completion is Q2/2023 with closeout scheduled for Q4/2023. 
There are no attachments to this memo. 
November 16, 2021  Construction funding authorization 
December 8, 2020  Design funding authorization 

Template revised September 22, 2016; format updates October 19, 2016.

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