Memorandum 15-132 Public Works Equipment Storage Building

Memorandum 15-132

TO:                       Mary K. Koester, City Manager

FROM:                 Carey Meyer, Public Works Director

DATE:                  August 4, 2015

SUBJECT:         Award of Contract

                              Public Works Equipment Storage Building Construction

The City Council authorized in the 2015 operating budget an expenditure of $150,000 to construct a storage shed for equipment (including the new street sweeper) and materials (water and sewer valves, fittings, etc.). This budget reflects equal cost sharing from the Water Fund (256-0378-5212), the Sewer Fund (256-0379-5212) and the General Fund (156-0395-5212).

Public Works prepared bid documents and solicited bids in accordance with the City’s procurement regulations (bids were advertised in the Homer News on July 16 and 23); six bids were publicly opened and read on August 4. The City’s 5% local bidder’s preference applies:

                              Steiner’s North Star Construction, Inc.           Homer                               $  82,451

                              Amcon, LLC                                                                 Anchorage                       $134,950

                              Jay Brant General Contractors                           Homer                               $127,000

                              Beachy Construction                                               Homer                               $  99,700

                              Diversified Construction, Inc.                              Eagle River                      $  96,800

                              Northern Industrial Training                               Palmer                                             $  85,870.96

                                                                                          Engineer’s Estimate                                 $104,000

The firm of Steiner’s North Star Construction, Inc. was determined to be the low responsive bidder: the bid was below the engineer’s estimate; and the firm is qualified to complete the work.

Project Budget Overview:       Design Cost                                                   $  15,380

                                                            Foundation Construction Cost            $  25,063

                                                            Shed Structure Construction Cost     $  82,451

                                                                           Total Cost Anticipated                             $122,894

Recommendation: The City Council pass a resolution awarding the contract for the Public Works Storage Equipment Storage Building project to the firm of Steiner’s North Star Construction of Homer, Alaska, in the amount of $82,451 and authorize the City Manager to execute the appropriate documents.