Memorandum 16-137 Contract Award for 2016 Paving Project

Memorandum 16-137

To:                       Katie Koester, City Manager

From:                  Carey Meyer, PW Director

Date:                   August 12, 2016

Subject:             Award of Construction Contract

2016 Paving Project

On August 11, 2016, bids were received for the 2016 Paving Project.  This work was advertised in the Homer News – July 21, 28, the Peninsula Clarion – July 24; and the Alaska Dispatch - July 24, 2016.

This project consists of grinding and repaving portions of several streets within the Homer city limits consisting of approximately 15,395 square yards of pavement.

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

Responsive Bidder’s Names                                               Local Bidder?                 Amount

Granite Construction Co.                                            No                                  $ 690,500.00

Clark Management, Inc.                                              No                                  $ 630,570.00

Knik Construction                                                         No                                  $ 513,592.50

Build Alaska General Contractors, LLC                 No                                  $ 419,245.64

McKenna Bros. Paving                                                 No                                  $ 418,771.30

Engineer’s Estimate                                        $ 545,695.00

The City’s 5% local bidder’s preference does not apply as there were no bidders that qualify under the Local Bidder Preference article of City Code (3.16.080). Build Alaska General Contractors did make a request to be considered as a Local Bidder, but in researching the language of the code, and after legal counsel was obtained from the City’s construction attorney, it was determined that the bidder did not meet the Local Bidder requirements.  Key language in the requirements is that the bidder must have “maintained and staffed a place of business within the boundaries of the City of Homer for a period of at least six months preceding the date of the bid…”. The bidder owns a vacant lot within the city of Homer and has some materials stockpiled on the lot.  The bidder’s contractor and business license lists the physical address of the business within Kachemak City. 

Recommendation:

Based on the bids and legal counsel, City Council pass a resolution awarding the construction contract for the 2016 Paving Project in the amount of $418,771.30 to McKenna Brothers Paving, Anchorage, Alaska and authorizing the City Manager to execute all appropriate documents necessary to complete this project. (Fiscal Note – HART Funds per Ord 16-29, 160-766)