MEMORANDUM 06-24

TO: Mayor Hornaday / Homer City Council

FROM: Walt Wrede

DATE: February 10, 2006

SUBJECT: Ramp Seven Gangway Procurement

Ordinance 06-06 is scheduled for introduction at the regular meeting on February 13, 2006. This ordinance authorizes the City Manager to purchase a new gangway for Ramp 7 on an expedited / emergency basis. As you will note from reading the backup material on this Ordinance, the gangway at Ramp 7 was damaged beyond repair after it was struck by a fishing vessel. The city is taking steps to hold the ship owner accountable for the damage. However, the City must move as quickly as possible to replace the gangway because, according to our engineers, it cannot be repaired adequately and is potentially a threat to public health and safety.

I am requesting that the City Council introduce and adopt Ordinance 06-06. Please be advised that this ordinance authorizes purchase of the Gangway pursuant to HCC 3.16.060 (C ) and the corresponding provisions of the Emergency Procurement Policy. The Emergency Procurement Policy provides for an exception to the City’s competitive bidding requirements in cases where there is an emergency related to public health and safety. The Emergency Procurement Policy requires that a written determination of the basis for emergency procurement and the selection of a specific supplier be placed in a procurement file. This memorandum is intended to serve as the required written determination.

The City’s engineers have inspected the gangway and determined that it cannot be repaired adequately. They conclude that it may ultimately fail over time given normal anticipated usage and load requirements. They strongly recommend replacing the damaged gangway with a new gangway. A copy of the inspection report will be included in your packet.

The engineers report that there are only two manufacturers who make the type of gangway required. They requested price quotes and anticipated delivery times from both. One company, Mantle Industries, has a two month lead time, a history of working with PN&D (City Engineers), and is the company that manufactured the damaged gangway. The other company, Bluewater Systems, has a four to six month lead time and a cost estimate that is $15,000 higher.

Therefore, I am requesting that the City adopt Ordinance 06-06 and authorize the administration to purchase a new gangway from Mantle Industries under HCC 3.16.060 ( C ). The gangway purchase itself is the only part of this project that will be exempt from competitive bidding procedures. All other work, including installation will be competitively bid.