12 Jul Commission Meeting Minutes 6-23-22
PORT COMMISSION OF THE PORT OF EDMONDS MINUTES OF SPECIAL MEETING
(Hybrid Meeting) June 23, 2022
Steve Johnston, Vice President
Jim Orvis, Secretary
David Preston, President-excused
Bob McChesney, Executive Director
Brandon Baker, Director of Marina Operations
Tina Drennan, Manager of Finance and Accounting
Brittany Williams, Manager of Properties and Economic Development
Jordan Stephens, Port Attorney
CALL TO ORDER
Vice President Johnston called the meeting to order at 9:30 a.m.
All those in attendance participated in the Pledge of Allegiance to the American Flag.
COMMISSIONER GRANT MOVED THAT THE CONSENT AGENDA BE APPROVED TO INCLUDE THE FOLLOWING ITEMS:
A. APPROVAL OF AGENDA
B. APPROVAL OF EXECUTIVE DIRECTOR CONTRACT AMENDMENT
COMMISSIONER HARRIS SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY.
Chris Wolten, Edmonds, asked that the Port consider providing a launch pad for paddle sports in the harbor, as the current decks are not safe for people getting in and out of kayaks because they are too high off the water. The current white floating low deck between C and D Docks would have worked well, but it is sinking. He noted that many other marinas in the area have great paddle sport launch sites. He proposed the following two ideas:
• Add some storage racks for kayaks and paddle sports up against the fence in the south end where the boat racks are located. A low floating dock could be added between Docks C and D. This would allow a person to roll a kayak down the ramp and onto the deck. Right now, this space is used for trailers, but it seems to be underutilized.
• V Dock could be used, as it is much lower to the water and appears to be underutilized. Boats could still be tied up on one side, with the other side for kayak launching. This option would be less desirable because there would not be any storage options.
The Commissioners thanked Mr. Wolten for his thoughts and ideas and agreed to consider his proposal.
CONTRACT AWARD FOR NEW ADMINISTRATION/MAINTENANCE BUILDING CONSTRUCTION NO. 2022-417
Mr. McChesney reported that, following a very successful bid process that closed on June 17th, Spee West Construction Company was determined to be the apparent low bidder at $7,275,000 plus sales tax. PCL Construction Services, Inc., came very close at $7,330,000. Faber Construction Corporation came in at $7,398,146, and Sea Con LLC came it at 8,066,480. He recommended the Commission authorize him to enter into a contract with Spee West Construction Company in the amount of $7,275,000 plus sales tax for the base bid for the New Administration/Maintenance building Construction.
COMMISSIONER HARRIS MOVED THAT THE COMMISSION AUTHORIZE THE EXECUTIVE DIRECTOR TO ENTER INTO A CONTRACT WITH SPEE WEST CONSTRUCTION COMPANY IN THE AMOUNT OF $7,275,000.00 PLUS SALES TAX FOR THE BASE BID FOR THE NEW ADMINISTRATION/MAINTENANCE BUILDING CONSTRUCTION 2022-417. COMMISSIONER ORVIS SECONDED THE MOTION.
Commissioner Grant noted that the difference in cost between the lowest and second lowest bidder was not significant. Beyond cost, he asked if the Port used any other criteria when reviewing the proposals. Mr. McChesney said the Port does not use a point system. However, staff has spent considerable time engaging with Spee West Construction Company staff and reviewing their references. They have done a lot of work for school districts, has extensive experience working for public agencies, and they are a local Edmonds firm. Staff feels very confident with their recommendation.
Commissioner Grant asked if there were any particular differences in the bids. Mr. McChesney said the only difference was the dollar amount, since they all bid the same plans and specifications. Commissioner Johnston commented that the fact that all four bids were close speaks well to the clarity and detail in the specifications. He said he has a lot of faith and confidence in the process.
Commissioner Orvis said he always worries about having to accept the low bid no matter what, but his research indicates that the Port has no reason to be concerned about this particular contractor. The company has a very good reputation statewide. Mr. McChesney concurred. He reviewed that the Port is bound by the requirement to take the low bid. There must be some exceptional reason to throw out the low bid, and Port staff has found no reason to do that.
Commissioner Orvis asked who would oversee the project and work with the contractor, and Mr. McChesney answered that Dennis Titus from CG Engineering would be the project engineer and project manager. In addition to Mr. Titus, the project oversight team would include Chris Osterman (Contract Administrator), Brian Menard (Director of Maintenance and Facilities), and himself.
Commissioner Grant requested an update on the status of Leadership in Energy and Environmental Design (LEED) Certification. Mr. McChesney answered that LEED Certification is still a work in progress, and the actual submittal to the Clean Building Certification Institute won’t happen until the end of July. However, Jackson Main and RWDI recently advised that the project lost two points because the building’s electrical systems are not metered separately. LEED Certification is still within reach, and the Port could potentially get the two points back if they wanted to go through a rather expensive redesign and change order.
Commissioner Grant noted that the project would likely meet LEED Silver Certification just by following state law. He asked if change orders would be required in order for the project to achieve LEED Gold Certification. Mr. McChesney answered that it would be reasonable to expect change orders if modifications to the work are required. The Commission would likely need to make some value judgements once they get more clarity on how the Clean Building Certification Institute will rate the project.
Commissioner Grant asked if Mr. McChesney has any idea what the cost of the potential change orders might be. Mr. McChesney answered that it would cost about $20,000 to install separate meters in order to get back the two points that were lost. However, the project would still be slightly short of the points required for LEED Gold Certification.
Commissioner Orvis summarized that the project would result in a 12,000-square-foot administration and maintenance building at a cost of nearly $8 million. If they were building a much larger and more costly building, some of the costs associated with LEED Gold Certification might be worth it. However, he would not support significant additional costs in order to obtain LEED Gold Certification for this smaller project. Mr. McChesney added that it might make sense if the new building would create a new revenue stream that would enable the Port to recapture the upcharges for LEED Certification. That is not the case in this situation.
Commissioner Grant asked when construction of the new building would start, and Mr. McChesney answered that a pre-construction meeting is scheduled for July 8th, and a “Golden Shovel” Event is scheduled for July 11th. The Port hasn’t yet had a detailed discussion with the contractor about the project timeline, but they fully expect to begin digging by mid-July. At the “Golden Shovel” event, Commissioner Grant suggested it would be worthwhile to note how the City of Edmonds would benefit from more than $300,000 in sales taxes revenue that will be collected for the project. Mr. McChesney concurred and noted that the Port would issue a press release announcing the event. He emphasized that the project would be a significant benefit to the Port and to the community, and they are very happy to bring it forward to the Commission for contract approval.
Port Attorney Stephens asked if there were any requests for bid responses. Mr. McChesney answered that they received one last week from PCL Construction Services, Inc., and state law required that they be allowed two days to review the other bids. In addition, Sea Con LLC requested a bid response. No bed protests were received from either company. The bid process has been fully vetted and staff is ready to ask the Commission for authorization to award the contract to Spee West Construction Company without any qualifications.
THE MOTION CARRIED UNANIMOUSLY.
Mr. McChesney thanked the Commission and complimented staff and the group of architects and engineers who have been working on the project for the past year and a half.
REVIEW CONSTRUCTION CHANGE ORDER POLICY
With the Commission’s approval to award the contract for the New Administration/Maintenance Building, Mr. McChesney suggested it would be appropriate to review the delegated authority of the Executive Director to approve change orders without prior Commission approval. As the project progresses, he anticipates that change orders are inevitable with a project of this size.
For the Commission’s information, Mr. McChesney reviewed the current policy as follows:
Port of Edmonds Commission Policy Directive on Administrative Authority of the Executive Director
B. Change Orders: In instances where contracts for the performance of work have been awarded and under which work is in progress, and individual changes in plans and/or specifications are necessitated to properly accomplish the work, the Executive Director is authorized, without prior Commission approval, to execute on its behalf change orders to the contract if all of the following are met:
a. The estimated cost of the aggregate changes in plans and/or specifications, exclusive of applicable taxes, will not exceed Fifty Thousand Dollars ($50,000), or 10% of the contract price, whichever is greater.
b. The contract provides for issuance of change orders.
c. The individual change order has been approved and certified by the project architect or engineer as being necessary to the proper accomplishment of the work called for in the basic contract.
d. The Executive Director shall inform the Commission at the next scheduled meeting of all actions undertaken under this section.
Commissioner Johnston noted that, as per Item a, the total amount of change orders the Executive Director could approve without prior Commission approval would be limited to a maximum of 10% of the total cost of the project. In the case of the New Administration/Maintenance Building, that would equate to between $700,000 and $800,000. Prior Commission approval would be required if the aggregate amount of the change orders would exceed 10% of the total cost of the project.
Mr. McChesney emphasized that, as per the current policy, he would be obligated to report on any change order status at the next Commission meeting. He said change orders are more commonly associated with earthwork, and the site of the new building used to be an industrial property. They may find some unsuitable material, and possibly even some contamination. Once construction of the actual building starts, he wouldn’t expect any change orders to escalate to that magnitude.
Commissioner Grant asked where the numbers in the policy came from, and Mr. McChesney said the policy was last updated in 2020 based on the Port’s experience with the Harbor Square Building 3 Project where there were a number of change orders. Commissioner Orvis questioned if the current policy is sufficient for the larger projects the Port is currently undertaking, and Mr. McChesney answered affirmatively.
Commissioner Orvis asked if the Commission could schedule an emergency meeting to approve a change order that exceeds the Executive Director’s authority if a decision must be made right away. Port Attorney Stephens answered affirmatively but cautioned that, in most cases, a 24-hour notice would be required.
EXECUTIVE DIRECTOR’S REPORT
Mr. McChesney did not have any additional items to report.
COMMISSIONER’S COMMENTS AND COMMITTEE REPORTS
Regarding the request to provide a launch pad for paddle sports, Commissioner Orvis noted that there is a lot more boat traffic at the south end of the marina than at the north.
Commissioner Grant recalled that he has been involved in the Cascadia Earthquake and Tsunami Project and recently met with the commander of the Coast Guard, who is head of emergency management for the Pacific Northwest Region and lives in Edmonds. She advised that the Edmonds boating community has the highest number of rescues in the Puget Sound area, and she agreed to provide actual statistics. She was very excited to learn that Edmonds is starting a marine rescue unit.
Commissioner Johnston reported that he and Commissioner Grant put together a draft vision and mission statement, along with some values. He forwarded the draft to Mr. McChesney for distribution amongst the Commissioners. The intent is that the documents will be presented at the first meeting in August for Commission approval.
Commissioner Johnston noted that the July meeting schedule had been modified. Mr. McChesney suggested that the regular meeting on July 11th could be paired with the “Golden Shovel” event. If the Commission wishes to alter the meeting time, it would need to be advertised as a special meeting. After a brief discussion, the Commission agreed to a 3:30 p.m. start time on July 11th. Mr. McChesney reminded the Commission that their second meeting in July would conflict with the Washington Public Port Association (WPPA) Commissioners Conference. The Commission agreed to cancel the July 25th meeting and schedule a special meeting on July 21st at 7 p.m.
Port Attorney Stephens advised that there will be an Open Public Meetings and Public Records Act Training Session will be offered at the WPPA Commissioners Conference. For Commissioners who haven’t completed the training in the past four years, attending this session would check the required statutory boxes. Ms. Drennan noted that all of the Commissioners completed the training in 2022.
The Commission meeting was adjourned at 10:15 am.
Port Commission Secretary