This is for Contract Modification No. 2 for the Arena Surface Lot with APAC-Atlantic, Inc.(LOCAL) in the amount of $8,000,000.

This contract will cover soil contamination quantities anticipated to be needed for the completion of remediation of the site and paving of the lot and Cohen Road multimodal infrastructure. The primary cause of cost overruns to date was determined to be the excavation and hauling of soil based upon visual cues rather than iterative sampling. The remainder of the work contained in this contract modification has been significantly reduced based upon our expert's evaluation of methods going forward. Costs were further reduced through direct contract with Waste Management, saving the contractor markup and reducing the per-ton haul rate from $377 per ton to $287.50 per ton. Additionally, to ensure adherence to the established project management protocols, the City is using both external site and project experts, including in our project management contract, to ensure completion in a timely and cost-effective manner. In arriving at this approach as the most cost-effective and efficient to completion, we considered thermal desorption, bioremediation, phytoremediation, solidification, solvent extraction, vitrification, direct landfill, and rail option for transport. We also solicited from other TSCA-approved landfill bids, and Waste Management was the lowest responsive bidder.

The lot will provide approximately 2,000 parking spaces and serve as the primary source of parking for the arena. An arena parking analysis determined that the 2,000-space surface lot on the 22.5-acre property, combined with a 400-space parking garage attached to the arena, is the most economical and efficient means to deliver required parking for the new facility. Providing surface parking is significantly less expensive than building a structured parking garage, which is estimated at $65-$70million. The parking lot option also provides the City with the most flexibility to adapt to changing parking demands in the coming years, including the expanding focus on ride-share options such as Uber and Lyft.

This contract was originally approved by Council on May 27, 2021, in the amount of $9,050,378.05.  Contract Modification No. 1 was approved by Council on February 2, 2024, in the amount of $4,500,000. The total amount of this contract to date, including Modification No. 1 and Modification No. 2, is $21,550,378.05.

Approval