Memorandum 11-093 Contract Award for Kachemak Drive Phase Two Water and Sewer Project to Herndon Construction

CITY OF HOMER
PUBLIC WORKS TELEPHONE (907)235-3170
3575 HEATH STREET HOMER, AK 99603 FACSIMILE (907)235-3145

MEMORANDUM 11-093

To: Walt Wrede, City Manager
From: Carey Meyer, Public Works Director
Date: June 13, 2011
Subject: Kachemak Drive (Phase II) Water and Sewer Project
Construction Contract Award Recommendations

The City opened bids for this project on May 17. Six bids were opened and read:

Central Environmental $4,781,562 Anchorage, AK
Construction Unlimited $4,829,689 Anchorage, AK
Herndon Construction $3,533,004.74 Homer, AK
North Star Paving and Construction $3,701,958 Soldotna, AK
Trenchless Construction $3,715,104 Arlington WA
Twin Peaks Construction $3,533,488 Anchor Point, AK
Engineer’s Estimate $3,244,812

Herndon Construction was found to be the low responsive bidder. Public Works has reviewed the qualifications of Herndon Construction and finds that the firm is qualified to complete the work. The project is funded by an ADEC/EPA loan; the City’s local bidder’s preference does not apply.

The non-objection period (initiated to provide property owners with the opportunity to express their interest in increasing the “engineer’s estimate to $3,277,953) ends June 23. If tabulated today, the balloting would result in 7 objections and 23 non-objections. 88 properties are eligible to object/non-object; those that do neither are considered as non-objections. Final results will be confirmed by the City Clerk at the June 27 City Council meeting.

Homer’s LID policy provides that no construction contract award can be made in the amount greater than 15% of the engineer’s estimate. The low bid for this project is within 15% (8.9%) of the engineer’s estimate approved by the property owners.

Recommendations:

The City Council award the construction contract for the Kachemak Drive (Phase II) Water and Sewer Project to Herndon Construction, of Homer, Alaska in the amount of $3,533,004.74; and authorize the City Manager to execute all appropriate documents to complete construction.

Fiscal note: 215-831 (HAWSP)