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Home My WebLink AboutRES2026-080 GHEMM Company LLC - Shore Power & Cruise Ship DockSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2026-080 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN INITIAL DESIGN -BUILD AGREEMENT WITH GHEMM COMPANY, LLC FOR THE SHORE POWER AND CRUISE SHIP DOCK EXPANSION PROJECT IN AN AMOUNT NOT TO EXCEED $2,127,700 FUNDED THROUGH THE ENVIRONMENTAL PROTECTION AGENCY CLEAN PORTS GRANT PROGRAM WHEREAS, the City of Seward has identified implementation of shore power at the Seward Cruise Ship Passenger Terminal as a critical infrastructure project to reduce air emissions, support environmental sustainability, and enhance the economic vitality of the port; and WHEREAS, by Resolution 2025-016, the City Council accepted $45,732,040 in grant funds from the U.S. Environmental Protection Agency (EPA) Clean Ports Grant Program for implementation of shore power at the Seward Cruise Ship Terminal and appropriated those funds according to the budget established in the grant narrative; and WHEREAS, Resolution 2025-016 established Fund 15360, Port of Seward Vessel Shore Power Project, for grant -related revenues and expenditures and authorized the City Manager to execute documents and take actions necessary to administer the EPA grant; and WHEREAS, the EPA grant award provides 90 percent of the approved project cost, with the required 10 percent match committed by The Seward Company, as described in Resolution 2025- 016; and WHEREAS, on February 2, 2026, the City issued a Request for Proposals for the Shore Power and Cruise Ship Dock Expansion as a design -build project, with the successful Design -Builder responsible for design, procurement, construction, installation, and commissioning of the shore power system; and WHEREAS, the Request for Proposals established Project Milestone 1 to advance the design sufficiently to enable procurement of long -lead items, with the 30 percent design of the Shore Power System identified as the initial design milestone; and WHEREAS, the Request for Proposals further anticipates a collaborative design -build process in which the City and Design -Builder review design progress, schedule risks, dependencies, and project requirements as the design advances; and WHEREAS, the City received one proposal in response to the solicitation, from GHEMM Company, LLC, with a total proposed Base Bid plus Additive Alternate 1 amount of $23,927,300, consisting of a $22,910,000 Base Bid and a $1,017,300 Additive Alternate; and WHEREAS, GHEMM has teamed with Watts Marine as the dedicated Shore Power System Provider, with GHEMM managing overall design -build delivery and Watts Marine responsible for CITY OF SEWARD, ALASKA RESOLUTION 2026-080 Page 2 of 3 equipment procurement, system engineering, commissioning, and related shore power system services; and WHEREAS, GHEMM's proposal states that, upon award, Watts Marine will immediately begin design toward the 30 percent Concept Design package while refining the transformer package to allow early procurement of long -lead equipment; and WHEREAS, the City desires to authorize an initial phase of the design -build contract rather than authorize the entire construction amount at this time, allowing the City and Design -Builder to advance design, further define project scope, cost, and schedule, and protect the procurement schedule for critical -path equipment; and WHEREAS, the City intends to return to the City Council for authorization of additional design, equipment procurement, and construction costs after the design has advanced sufficiently to establish an agreed -upon project scope, price, and schedule. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. The City Council hereby authorizes the City Manager to enter into an initial design - build agreement with GHEMM Company, LLC for the Shore Power and Cruise Ship Dock Expansion Project in an amount not to exceed $2,127,700. Section 2. This initial authorization does not constitute authorization of the full $23,927,300 proposal or the remaining design and construction costs. The City Manager shall return to the City Council for additional authorization after the design has advanced sufficiently to establish an agreed -upon project scope, price, and schedule, or as otherwise required to maintain the project schedule. Section 3. Funding in an amount not to exceed $2,127,700 is authorized from Fund 15360, Port of Seward Vessel Shore Power Project, using funds previously accepted and appropriated through Resolution 2025-016 from the U.S. Environmental Protection Agency Clean Ports Grant Program. Section 4. The City Manager, or designee, is authorized to negotiate and execute the initial contract, notices to proceed, equipment commitments, and other documents necessary to carry out this resolution, subject to final contract terms acceptable to the City and compliance with applicable EPA grant requirements. Section 5. This resolution shall take effect immediately upon its adoption. CITY OF SEWARD, ALASKA RESOLUTION 2026-080 Page 3 of 3 APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 28th DAY OF SEPTEMBER 2026. 5'-{A—Me Sue McClure, Mayor AYES: Osenga, Warner, Draper, Calhoon, McClure NOES: None ABSENT: Barnwell, Crites ABSTAIN: None ATTEST: Kris Peck City Clerk City Council Agenda Statement Meeting Date: September 28, 2026 To: City Council Through: Kat Sorensen, City Manager From: Brian Hickey, Electric Manager Subject: Resolution 2026-080: Authorizing the City Manager to Enter into an Initial Design -Build Agreement with GHEMM Company, LLC for the Shore Power and Cruise Ship Dock Expansion Project in an Amount Not to Exceed $2,127,700 Funded through the Environmental Protection Agency Clean Ports Grant Program Background and justification: Approval of this resolution will allow the City to continue moving the Shore Power Project forward through the collaborative design -build process, allowing the City and design -builder to refine the project scope, cost, and schedule as the design progresses. The project will provide modern, reliable port infrastructure, reduce emissions from cruise ships while in port, and support the long-term economic and environmental sustainability of Seward's waterfront and community. Moving forward now will also help protect the project schedule and ensure the City can effectively utilize the EPA Clean Ports Grant funding available for this important community infrastructure project. IOW Fiscal Impact: Funding Source: X X X Yes — Amount: $ No General Fund: Budgeted: Yes No N/A Enterprise Fund: 15360 — Port of Seward Vessel Shore Power Project Grant: EPA Clean Ports Grant 5YO2J92001 Other: Finance Director Signature: plated Suraedeiuteeaa (acting) Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: City Council Agenda Statement Strategic Plan: Other: Attorney Review X Yes Attorney Signature: Not applicable Comments: Administration Recommendation X Approve Other: CONTRACTORS LICENSE #199219 September 17, 2026 GHEMM COMPANY LLC City of Seward PO Box 167 Seward, AK 99664-0167 Re: Shore Power and Cruise Ship Dock Expansion, Seward, AK RFP for Design -Build General Construction Services To whom it may concern: GHEMM Company is pleased to provide you with the requested, updated cost proposal including design fees, and early procurement of long lead materials necessary to begin the captioned Seward Shore Power project. We very much appreciate this opportunity and look forward to discussing our proposal in further detail with you. Per your request, pricing for this early package is: Inclusions • 30% design package • Design management • Cost estimate for 30% design package • Down payment to secure two (2) transformers • Down payment to secure PEMB shop drawings and engineering Exclusions • Design and/or engineering beyond 30% design • Procurement of materials beyond what is mentioned above • Construction of any kind GHEMM expects the 30% design process to take approximately five (5) months to complete. Based upon this duration, we see the schedule as follows: • Notice to Proceed for 30% Design • Contracts, Material Procurement Starts • 30% Design Complete October 2, 2026 October 9, 2026 February 5, 2027 31361 SCHACHT STREET FAIRBANKS ALASKA 99701 T 907.452.51 91 F 907.451 .7797 E GHEMM@GHEMM.COM GHEMM COMPANY LLC City of Seward September 17, 2026 Page 2 GHEMM Company will supply all project management, labor, materials and design/engineering necessary to complete this early, limited scope of work at a total cost of $2,127,700.00. Again, we thank you for this opportunity to be of service to the City of Seward. We are available to discuss this project in further detail and look forward to hearing back from you soon. Sincerely, GHEMM Company, LLC ;Me-� 012( President Cc: Matt Chacho, PE, Vice President, GHEMM Company, LLC 3861 SCHACHT STREET FAIRBANKS ALASKA 99701 T 907.452.5191 F 9❑7.451 .7797 E GHEMM@GHEMM.COM