Memorandum 14-062 Contract Award for Homer Fire Station #2 Skyline Drive to Steiner's North Star Construction, Inc.

Memorandum 14-062

To:                       Walt Wrede, City Manager

From:                  Dan Nelsen, Project Manager

Through:           Carey Meyer, PW Director

Date:                   March 19, 2014

Subject:             Award of Construction Contract

Homer Fire Station #2 – Skyline Drive

On February 27, 2014 bids were received for the Homer Fire Station #2 – Skyline Drive project.  This work was advertised in the Homer News and the Peninsula Clarion during the months of January and February.

This project will consist of constructing a new 2,750 Sf. Fire Station located directly adjacent to the existing Homer Water Treatment Plant on Skyline Drive. The new station will consist of 4 heated apparatus bays.  The new foundation will be poured in place concrete slabs and thickened edges that will be incorporated with the foundation of the old water treatment plant. The building structure is a structural steel frame with prefabricated exterior wall panels.  The interior will consist of a mechanical room, 100 sf. office and one small restroom with a mezzanine level for extra storage.

Four responsive bids were received from qualified firms.  The bid results were evaluated and the results are listed below.  With results clearly showing that the project was over budget the Department of Public Works entered into value engineering discussions with the apparent low bidder Steiner’s North Star Construction, Inc. and was able to bring the construction cost down to $510,800.00.  Memorandum 14-039 was then sent to the City Manager requesting that an Ordinance be passed amending the 2014 Operating Budget authorizing the use of Fire Reserve funds ($15,000) and General Reserve funds ($83,000) to complete this project.  At the March 10, 2014 city council meeting Ordinance 14-12 was presented for first reading and will be up for public hearing and second reading at the March 24, 2014 council meeting.   

Responsive Bidder’s Names                                 Location                           Amount

Steiner’s North Star Construction, Inc.           Homer                               $ 563,522.00

Wirtanen Commercial, LLC                                 Palmer                              $ 612,900.00

Beachy Construction, Inc.                                     Homer                               $ 615,238.00

G&S Management Services, LLC                       Anchorage                      $ 805,556.00

Engineer’s Estimate                                 $ 524,000.00

Recommendation:

City Council pass a resolution awarding the construction contract for the Homer Fire Station #2 – Skyline Drive project in the amount of $510,800.00 to Steiner’s North Star Construction, Inc. of Homer, Alaska and authorizing the City Manager to execute all appropriate documents necessary to complete this project.

Fiscal Note - Homer Fire Station #2: 151-0936