Memorandum 18-067 Award of Construction Contract for Greatland Street Extension

MEMORANDUM 18-067

TO:                         MAYOR ZAK AND CITY COUNCIL

THRU:                   KATIE KOESTER, CITY MANAGER

FROM:                  CAREY MEYER, PUBLIC WORKS DIRECTOR

DATE:                    MAY 11, 2018

SUBJECT:           AWARD OF CONSTRUCTION CONTRACT FOR GREATLAND STREET EXTENSION

The Homer City Council passed Ordinance 17-05(A) and 18-24 in the amount of $671,053 and $79,452 for the purpose of completing the Greatland Street Extension Improvements. These improvements include extending the road up to Pioneer Avenue, including sidewalks and concrete curb/gutter on both sides, street lights, signing and striping for safe bike lanes, and other improvements identified by the Council.

On May 10, 2018, bids were received for the project. The project was advertised in the Homer News on April 19 and 26 and in the Peninsula Clarion on April 21.  Competitive bidding was completed in accordance with the City’s procurement regulations.

Two responsive bids were received from qualified firms.  The bid results were evaluated and the results are as follows.

         Responsive Bidder’s Names                                                                   Amount

Clark Management                                                                      $    665,078.73

Arno Construction, Inc.                                                                 $    702,361.60

                Engineer’s Estimate                                                       $    621,194.00

The City’s 5% local bidder’s preference does apply to this award. Neither bidder meets the definition of local bidder.

The low bid is not within the project budget approved by the City Council. To bring the project in conformance with the budget, Public Works proposes to not award the expensive MMA Traffic Marking bid item ($68,000). Traditional paint striping will be substituted through a change order. This will bring the project within budget without compromising project intent. Public Works expects the work to commence in June and be completed by August.

Recommendation:

City Council pass a resolution awarding the construction contract for the Greatland Street Extension Improvement project in the amount of $597,078.73 to Clark Management, Anchor Point, Alaska and authorize the City Manager to execute all appropriate documents necessary to complete this project.      

Fiscal Note – 160-0775