The Carbide Dock is one step closer to becoming a major tourism and shipping port after Sault Ste. Marie City Commissioners approved a bid at last night's meeting, awarding $21,793,000 to Roen Salvage Company of Wisconsin.
A $10,676,514.55 bid was also awarded to Bacco Construction Company of Michigan to begin work on the Easterday Avenue Truck Route.
With the Easterday project bid deadline set to expire after 90 days on Jan. 12, 2023, and the Carbide Dock bid set to expire on Jan. 26, 2023 immediate commission attention was required.
"We did a presentation a couple meetings ago regarding our plan to move forward with the Carbide Dock and Easterday Avenue Projects," City Manager Brian Chapman said. "We discussed our idea of phasing out the projects, so we were able to do the work with the funds we currently have available, adding on other elements of the project as more funding become available."
The city presented its new approach to United States Maritime Administration (MARAD) staff.
"They gave us a thumbs up on the phased approach," Chapman said.
Rewinding back to 2021, the city received two bids for the construction of the Carbide Dock at $30.3 and $26.7 million. The two bids received for the Easterday Truck Route were $13.6 and $10.8 million.
The lowest bid option for the two related projects totalled $37.5 million, but the city only had $23 million to work with at the time. This left a funding gap of approximately $14.5 million.
City Engineer Dave Boyle worked with contractors to find ways to reduce costs. Such discussions reduced the funding gap by approximately $4,956,620.
Low projects bids for 2022 totalled $32.3 million. The city currently has about $23 million in funding to leave a new funding gap of approximately $9.3 million.
Phasing out both projects is said to reduce the Carbide Dock contract amount by $7,560,789.20 to a total $14,232,210.80 and Easterday Avenue contract amount by $950,561.05 to total $7,919,478.49.
Phased out Carbide Dock elements include surficial treatments identified as pavements, curbs, site furnishings, and landscape plantings. The following core elements will remain: mobilization, maintenance of traffic, construction staking, site preparation items, sheet pile wall system, and underground utilities.
Phased out Easterday Avenue elements include but are not limited to: modifying the road section to 15-inches of sand and geogrid, eliminating sanitary work on Johnston Street, using fiber curb and gutter reinforcement, and resurfacing Ord Street from Spruce Street to Portage Avenue.
A Memorandum of Understanding (MOU) of each project was also approved by commissioners to reduce the contract amounts in accordance with the city's available funding.
When additional funding is secured, a separate contract change order will be issued to push the phased elements into project forefront.
"So, the MOU essentially protects the tax payers in case we don't receive additional funding?" Commissioner Steve Habusta asked.
"What it really does for us is save money," answered Chapman. "It give us the ability to lock in contractor bids."
According to the city manager, delaying the project would add an estimated $2 million annually to rising bid costs.
The city has two construction seasons to complete the Carbide Dock and Easterday Avenue Project.
For more information on the Carbide Dock and Easterday Avenue Projects, view the Sault Ste Marie City agenda, here.
