MEMORANDUM

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: January 19, 2005

Subject: Hillside Acres LID

Water and Sewer Improvements

Construction Contract Award Recommendations

Public Works opened bids for the above referenced project on January 18. Below are the results:

Construction Limited, Inc. Anchorage, AK $3,061,344.80

Zubek, Inc. Kenai, AK $2,499,826.10

Peninsula Const., Inc. Kenai, AK $2,533,023.50

Herndon Construction, LLC Homer, AK $1,978,714.50

Public Works has reviewed the bids and evaluated the responsiveness of each bidder. The apparent low bidder is Herndon Construction, LLC. The Engineer’s estimate is $2,520,839.

Most of cost of most of this project will be charged to the Hillside Acres Water and Sewer LID; some off-site improvements will be charged to benefited property owners outside the LID boundaries (through deferred assessments), and improvements that benefit the entire community (over-sizing of pipe, installation of PRV station) will be paid for directly by the HAWSP fund.

Recommendation: The City Council should authorize the City Manager to issue a Letter of Intent to Award to Herndon Construction, LLC. Upon meeting the conditions of the Bid, the City Manager should be authorized to award the contract to Herndon Construction in the amount of $1,978,714.50; issue a Notice to Proceed, and execute all required documents needed to complete the LID project (in accordance with previous authorizations by the City Council).