The municipality of Skagway put out a request for bids to renovate part of its waterfront. Only one company submitted a proposal at a much higher cost than anticipated. The municipality is now negotiating with the company to find a way forward.
The Municipality of Skagway says it’s time to rebuild what’s known as the Ore Peninsula on Skagway’s waterfront. Among other things, the municipality would like to add some dolphin and a 500 foot float to tie cruise ships, build a marine services platform for the transfer of ore, and add to or renovate existing facilities and utilities. The municipality’s estimated cost for the work came at just over $50 million. But the one and only bid for the project came in at double that. Pacific Pile & Marine, submitted a bid at over $100 million.
Now, the municipality will have to prioritize what it can get done with available funds. Borough Manager Brad Ryan traveled to Seattle to negotiate with the company.
Ryan: “We are not changing any of the design, we are just just staging it now so we won’t get everything done, but we are also not moving anything now so it can’t be done.”
Ryan says the bulk of the work would start in October. It will include the 500’ foot cruise ship float, some new dolphins, and reinforcements for existing dolphins. Also a transfer bridge, and the concrete pilings that will connect to it. But some aspects will have to be put on the back burner.
Ryan: “The transfer bridge had some pretty decorative glass and windscreen on it, we’ll leave the sockets to get that on there in the future, but that’s going to have to come off.”
Other parts of the projects will be delayed. This includes two deep water dolphins, the demolition of the timber dock north of the ore loader, and redoing the water, sewer and electrical at the site. For now, the municipality will also leave the existing fuel header in place.
The Marine Services Platform is to be funded by the Yukon government. Ryan says Yukon officials are still interested but the higher cost will have to be approved by their legislature.
As for why the municipality was so surprised by the high cost, Ryan says the pandemic and subsequent inflation has made it hard to price things.
Ryan: “Everybody is struggling right now to get accurate estimates on construction projects, just because it’s such a moving target with the labor force and the supply chain. We just haven’t recovered from that deficit of COVID, and everybody seems to be struggling to get the price right.”
Ryan says the municipality has $45 million dollars available from bonds. He expects future harbor revenue can pay for work that is being put off.
A special meeting has been scheduled for the 18th of July, when the assembly will discuss awarding the contract to Pacific Pile & Marine.
