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Commission authorizes MOU amendment and CMGC approach for Pier 27 cruise terminal design development
Summary
The commission approved an amended MOU with DPW to extend Pier 27 design development, increasing design contract authorization to $2,410,070 and endorsing a construction-manager/general-contractor (CMGC) integrated delivery approach; staff said Phase 1 can be funded while a $28 million gap remains for Phase 2.
The Port Commission approved amending the memorandum of understanding with the San Francisco Department of Public Works to continue design development work on the Pier 27 James Hermann Cruise Terminal and Northeast Wharf Plaza and to use an integrated project delivery approach (CMGC).
Kim Van Blom, presenting project finances, said the schematic design cost estimate for the full facility came to $106,000,000 while available funding was about $78,000,000, leaving a roughly $28,000,000 gap. She described value-engineering steps that reduced Phase 1 scope and identified savings (a $4,000,000 reduction by shrinking the baggage area, roughly $1,000,000 from interior changes, $1.5 million from substituting asphalt for pavers, and $3.5 million from a different Marginal Wharf repair scheme) that together allow Phase 1 (the America's Cup core-and-shell) to be fully funded while leaving about $12,000,000 shortfall in Phase 2.
Edgar Lopez of DPW explained the CMGC approach and its risks: early preconstruction services (estimated at $300,000 to $400,000) and possible early procurement of long-lead items entail financial exposure if CEQA fails to clear; staff said no construction would take place before CEQA clearance and the contract would include cancelation protections. The commission adopted Resolution 11-22 to amend the MOU, approve the procurement approach, and authorize DPW to advertise for a construction manager/general contractor.
