MEMORANDUM 03-119

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: July 21, 2003

Subject: Paint & Stain Project 2003

Airport Terminal, Fire and Police Department Buildings

LETTER OF NOTICE OF INTENT TO AWARD

The City opened bids for the above referenced project on June 26, 2003. Attached are the results. The apparent “lowest responsible bidder” is A.M. Services; Nikolaevsk, AK for the amount of $55,856.00 and is the second lowest bidder. The engineer’s estimate was $62,000.00.

The Lowest Bidder Alaska Chem Dry By Magic Touch DBA Paint by Magic Touch submitted a Bid for amount of $25,965.00. This bid total is 53.5% lower than the second bid from A.M. Services and 58.1% lower than the City of Homer Engineers Estimate. I recommend that this bid should be rejected as not responsible. This firm was given an opportunity to confirm in writing that they were aware of all project requirements, but did not respond fully to our concerns.

Recommendation: The City issued a letter of intent to award to AM Services, Nikolaevsk, AK for the of bid amount of $55,856.00. Upon meeting the conditions of the bid, the City should formally award the bid and issue a notice to proceed to AM Services.