MEMORANDUM 06-133

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: August 10, 2006

Subject: Spruceview/Noview Road LID (Phase I)

Construction Contract Award Recommendations

Public Works opened bids for the above referenced project on August 9. Below are the final results:

Twin Peaks Construction, Inc. Anchor Point, AK $546,072.00

Herndon Construction, LLC Homer, AK $625,153.49

Public Works has reviewed the bids and evaluated the responsiveness of each bidder. The final apparent low responsive bidder is Twin Peaks, Construction, Inc. The engineer’s estimate was $683,006.

Property owner’s benefiting from this project will pay $47 per frontage foot as their share of the cost of this project. The remainder of the project cost will be funded from the Homer Accelerated Roads Program (HARP), Account No. 160-768-5260.

Recommendation: The City Council should authorize the City Manager to issue a Letter of Intent to Award to Twin Peaks Construction, Inc., Anchor Point, Alaska. Upon meeting the conditions of the Bid Documents, the City Manager should be authorized to award the contract to Twin Peaks Construction, Inc. in the amount of $546,072; issue a Notice to Proceed, and execute all required documents needed to complete this project (in accordance with previous authorizations by the City Council).