CITY OF VALDEZ ALASKA REQUEST FOR PROPOSALS

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1 CITY OF VALDEZ ALASKA REQUEST FOR PROPOSALS Project: Build, Own, and Operate a Fuel Dock and Related Infrastructure for the New Boat Harbor in Valdez, Alaska Issued: June 23, 2017 City of Valdez Port and Harbor Department P.O. Box 307 Valdez, AK 99686

2 Table of Contents 1.0 Project Overview Introduction Project Background Project Description/Site/Goals Project Approach Qualified Organization Project Team Project Budget Project Schedule Scope of Work Build Permits Owner Development Rights Leasehold Interests Operate Selection Process Selection Criteria Selection Schedule Proposal Content and Format Signed confirmation... 8 APPENDICES A. Proposed Site Master Plan B. Overall Utility Plan Phase I i

3 1.0 Project Overview 1.1 Introduction The City of Valdez (hereafter City) invites qualified organizations, as defined herein, to respond to this Request for Proposal (RFP) to Build (design and construct), Own and Operate a state-ofthe-art marine fueling dock and related infrastructure (hereafter Project) in the New Boat Harbor which is currently under design and construction. This RFP solicits responses from Qualified Organizations capable of demonstrating the financial and technical resources required to finance, design, construct, operate and maintain a floating fuel dock and required fueling systems sufficient to meet the fueling service needs of vessels using the New Boat Harbor. 1.2 Project Background The City is expanding its harbor facilities with the building of a New Boat Harbor to the east of the existing Ship Escort/Response Vessel System (SERVS) facility. The United States Army Corps of Engineers (USACE) is now constructing breakwater structures to form a basin for the new boat harbor to the southeast of the existing harbor and south of South Harbor Drive, and the City is in the process of designing the float system and constructing the upland facilities. 1.3 Project Description/Site/Goals The New Boat Harbor will accommodate moorage of approximately 140 vessels up to 100 ft. LOA. Current design drawings provide for space to support a 20 ft. wide by 90 ft. long floating fuel dock located at the end of a moorage float (see Design Drawings in Appendices: A - Design Drawings C1.0 Proposed Site Master Plan and B - C6.0 Utility Site Plan, provided for reference and Not To Scale). The following chart summarizes the lengths and number of vessels that can moor in the harbor. 1.4 Project Approach Slip length Quantity 36 ft ft ft ft ft. 4 Transient/parallel moorage (Linear Feet) 656 ft. The City is seeking a Qualified Organization to finance, design, construct, operate and maintain a new, fully functional floating fuel dock in the New Boat Harbor. The selected Qualified Organization will secure exclusive Development Rights from the City to build, own and operate commercial fueling facilities in the New Boat Harbor, and the City will provide upland and tideland areas in the New Boat Harbor through long-term leasing arrangements sufficient for the building and operation of a floating fuel dock, fuel storage tanks and distribution system. All Request For Proposals 1

4 structures, facilities and equipment comprising the fuel dock and distribution system will be owned and controlled by the Qualified Organization. Through transactions and agreements with the City, the selected Qualified Organization shall: Provide and implement a completed Project Plan for the design, permitting and construction of the Project demonstrating the design and engineering qualifications and construction experience required for successful completion of the Project along with a estimate of total construction costs and an overall project schedule; Provide and implement a Financial Plan demonstrating sufficient capital for the building and operation of the Project along with schedule of payments that would be due the City for the Development Rights and Leasehold Interests detailed below; and Provide and implement an Operations & Maintenance Plan for the Project as an on-going concern and in conformance with all applicable codes and regulations, including estimates of services and products to be provided by the Project Qualified Organization The City encourages entities to respond to this RFP that can: 1. Demonstrate financial resources sufficient to cover all development and construction costs associated with the Project, as well as adequate working capital to sustain commercial operations and to satisfy all remunerative conditions of the leasehold interests of the Project. 2. Meet the following eligibility criteria (hereafter Qualified Organization) to respond to this RFP: A. Respondents with a record of accomplishment in managing/overseeing the design and construction, and the operation and maintenance of a marine fuel dock and related infrastructure of a similar size, complexity, and scale, including, but not limited to, responsibility for operations, maintenance, and boat fueling services. B. Marine Fuel Dock Developers/Operators that have provided superior levels of customer service at similar Alaskan ports, harbors, or like facilities. Respondents to this RFP should include references to support the foregoing eligibility criteria. Please Note: Respondents to this RFP will be required to demonstrate, to the satisfaction of the City, compliance with these qualifying criteria for a period not less than 5 years. Organizations such as underwriters of harbor bonds; providers of marine harbor structure design, engineering, surveying, and architectural services; legal or financial Request For Proposals 2

5 1.5 Project Team advisors; and/or other providers of professional services do not meet the eligibility criteria for responding to this RFP. Such firms may participate in an RFP submission as part of a team that includes a Qualified Organization. The Project represents a cooperative, long-term venture between the City and the selected Qualified Organization, with the City providing leases for upland and tideland areas in the New Boat Harbor and the Qualified Organization providing the resources and knowledge to finance, design, build, and operate the fuel dock and related infrastructure so as to supply fuel to commercial and recreational boaters in Prince William Sound. With the cooperative building of the New Boat Harbor by the City and USACE, the opportunity exists for the selected Qualified Organization to work with the City s project team to coordinate the design and construction of the fuel dock along with the other upland and harbor elements being constructed. The City s goal is to select a Qualified Organization that can: A. Cost-effectively design and construct a state-of-the-art floating fuel dock and related infrastructure; B. Work within the existing areas set aside for these facilities in the current design plan shown in Appendix A & B, or propose alternate arrangements that can be easily incorporated into the overall harbor design and construction efforts currently underway; C. Integrate design, permitting, construction, and operational aspects as required to minimize construction timelines; D. Provide operations and maintenance services for the fuel dock and infrastructure; E. Optimize risk allocation among the parties involved in the Project; F. Meet all regulatory requirements for a marine fuel dock and obtain necessary permits; G. Provide excellent and competitive customer service to the boaters in Prince William Sound; and H. Demonstrate the financial and managerial resources required to satisfy all provisions of the Development Rights agreement and leasing terms for the fuel dock. 1.6 Project Budget Responses to this RFP shall include an estimate of total costs for the design and construction of the Project as part of the Project Plan discussed in Item 2.1 below. Request For Proposals 3

6 1.7 Project Schedule Design and construction of the New Boat Harbor is proceeding in several phases. Construction of the Uplands Civil Work began in the 2 nd quarter of 2015 and was completed in the 4 th quarter of Construction of the Uplands Facilities is currently scheduled to commence in the 1 st quarter of 2017 and be completed in the 4 th quarter of Construction of the Inner Harbor Facilities including the gangway and float system is anticipated to commence in 2017 and be completed in This phasing is not definitive and is subject to change based on the actual completion timing of the USACE Breakwater and Dredging contract, receipt of a permit modification allowing in water rock removal, and other factors. Responses to this RFP shall include an overall schedule for the design and construction period of the Project. Scheduling of the Project should seek opportunities to complement and integrate with the schedule for the New Boat Harbor. This should include providing marine fueling facilities as soon as possible after the harbor is open for business. 2.0 Scope of Work 2.1 Build The City intends to provide the selected Qualified Organization (hereafter Owner/Operator) with Development Rights to design, permit, build, own, and operate a fuel dock and fuel distribution facilities in the New Boat Harbor. The Owner/Operator shall finance, construct and operate the new fuel dock and fuel distribution facilities as owner of the Development Rights, with controlling interest in the required upland and tideland areas held through leasehold rights. The Owner/Operator will build, own and operate all structures, facilities and equipment comprising the Project. The Owner/Operator shall provide a Project Plan for the design and construction of the Project through commissioning. This plan shall identify and qualify the design and engineering professionals designing the Project, as well as the construction capabilities and resources that will be used. A construction cost estimate for all materials and equipment required for the Project shall be included in the plan, as well as documentation/substantiation that the aesthetics of design and materials of construction will reasonably match those of the New Boat Harbor being completed by other Contractors. While it is expected that the Owner/Operator will propose the use of above ground storage tanks, the City will consider alternatives suggested by the Owner/Operator Permits The Owner/Operator shall be responsible to secure all permits for new construction in accordance with U.S. Army Corp. of Engineers, Alaska Department of Environmental Conservation, Title 15, Building and Construction, of the City code, noting specifically language requiring building, fuel Request For Proposals 4

7 2.2 Owner gas system, and other system permit applications be accompanied by plans, diagrams, computations and specifications prepared by the contractor, engineer or other designer approved by the building official. The Owner/Operator will secure exclusive Development Rights from the City (as detailed below in Item 2.2.1) to build, own and operate the Project. Under these Development Rights, the Owner/Operator shall generate the designs and secure permits as per Item and construct the fuel dock and fuel distribution system in accordance with the final drawings as approved by the City. The Owner/Operator designs shall conform to the locations and areas identified in Appendices A & B for the installation of the fuel distribution system components and fuel dock. The City will provide the Owner/Operator with leasehold rights for the areas required for installation and operation of the Project. These conveyances will be made at market rates as determined through the competitive selection process and negotiations between the City and selected Owner/Operator. Leases enacted for the fuel dock and its operations in the New Boat Harbor will conform to applicable provisions of Title 4-Disposition of City-owned Real Property, Chapter 4.08-Lease of City Property of the Municipal Code Development Rights The City intends to convey Development Rights to the Owner/Operator for the Project and to establish the terms and conditions for the Owner/Operator to legally occupy and use the upland and tideland areas in the New Boat Harbor required for the Project. The Development Rights shall provide the Owner/Operator with the exclusive right to build, own and operate commercial fuel supply services as part of the New Boat Harbor. As a part of the Financial Plan, the Owner/Operator shall identify an amount that the Owner/Operator is willing to pay to the City for the conveyance of said Development Rights. Final valuation of Development Rights will be determined through negotiations with the City. Additionally, in the Financial Plan the Owner/Operator shall reflect a fair market value for the Leasehold Interests (Item 2.2.2). The City estimates the fair market value for the uplands to be $4.00 per sq. ft., and the tidelands to be $1.20 per sq. ft. Actual leasehold payments will be negotiated with the City and be consistent with Section Fair rental value to be used for leases Exceptions of the Municipal Code Leasehold Interests As Owner/Operator of the fuel dock facilities, the Owner/Operator shall negotiate and acquire leasehold interests to control the upland and tideland areas required to construct and operate the Project. This will be accomplished through two separate leases a land lease for the required shore side facilities, and a tidelands lease for the fuel dock. Development Rights and Leasehold Interests shall include performance criteria related to the provision of maritime fueling services for commercial and recreational vessels using the New Boat Harbor; maintenance of convenient and safe access to the fuel dock for patronizing vessels; compliance with all applicable regulations; maintenance of the fuel dock and fuel distribution system in good working order; Request For Proposals 5

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9 4.0 Selection Criteria All proposals received will be evaluated against the Qualified Organization criteria enumerated in Item of this RFP. Proposals satisfying these criteria will then be evaluated for quality and completeness of plans for delivering and operating the Project as provided by the Owner/Operator in the plans to (1) Design and Construct (Project Plan), and (2) Operate the Project (Operating Plan). In addition, a (3) Financial Plan identifying a schedule of payments to the City for Development Rights and Leasehold Interests, will be part of the evaluation criteria. The selection process will comply with the City s procurement codes, and the selection will be made on the basis of best value to the City through the consideration of quantitative and qualitative information provided by the proposers. The Selection Committee will comprise members from the Ports and Harbor Commission and City Administration, and may include other members. In their review of the submissions received, the Selection Committee will use a Selection Criteria matrix based on the following and as modified/applied by the Selection Committee: Selection Criteria Reference Weighting Qualified Organization Item Pass/Fail Project Plan Item % Completeness of Plan Quality of Design Quality of Material Financial Plan (Remuneration to City) Development Rights Leasehold Interests Service Capacity (fuels, hours) Leasehold payments schedule Per gallon payments Item 2.2 Item Item % Operating Plan Long term operations and maintenance plans Security plans Item % 5.0 Selection Schedule The following tentative schedule has been established for this RFP: Request for Proposals Issued: June 23, 2017 Responses Due: July 21, 2017 Interviews/Negotiations: August 2, 2017 Selection: August 15, 2017 Request For Proposals 7

10 6.0 Proposal Content and Format Proposals should respond directly to the criteria and components included in this RFP, concise proposals are encouraged. Minimally, proposals should include: A. Cover Letter; B. Materials demonstrating capacity as Qualified Organization per Item 1.4.1; C. Project Plan (Item 2.1); D. Financial Plan (Item 2.2); and E. Operating Plan (Item 2.3) 7.0 Signed confirmation Owner/Operator, when selected, shall provide signed confirmation to provide the following: A. Performance Bond; and Payment Bond in the sum of two million five hundred thousand dollars. B. Certificate of Insurance in accordance with the requirements of the City, listing the City of Valdez as additionally insured. Request For Proposals 8

11 APPENDIX A DRAFT

12 APPENDIX B DRAFT