MEMORANDUM 07-48
TO: MAYOR
HORNADAY AND HOMER CITY COUNCIL
THRU: WALT
WREDE, CITY MANAGER
FROM: STEVE
DEAN, PORT DIRECTOR/HARBORMASTER
DATE: MARCH
7, 2007
SUBJECT: DREDGE
SPOILS BID RESULT
BACKGROUND:
The Army Corps of Engineers (ACOE) dredges approximately 16,000 cubic
yards of sand and gravel from the harbor entrance and the Cutter Hickory berth
on an annual basis. ACOE estimates removal of 4,000 cubic yards for the Hickory
berth in April and up to 12,000 cubic yards from the harbor entrance and Hickory
berth in September. The City of Homer owns the material for its beneficial use.
The City of Homer solicits bids annually from private individuals for use of
the material as fill on Spit projects. Past Port and Harbor Commission action
suggested a minimum bid of $5 per cubic yard for Spit use.
Below
is a summary of bid results from 2004 through 2007:
|
2004 |
Bidder |
Quantity |
|
Bid
Price |
|
|
|
Phukan,
Inc. |
2000
cubic |
yards |
$6.00
cubic |
yard |
|
|
Castaways
Park |
250 " |
" |
$6.00 " |
IS |
|
|
English
Bay Corp. |
12000 " |
|
$5.01 " |
" |
|
|
|
|
|
|
|
|
2005 |
Lands
End Acquisition Corp. |
4000
cubic |
yards |
$5.50
cubic |
yard |
|
|
City/DOT
Ice Rink Access |
1200 " |
|
$0 |
|
|
|
Castaways
Park |
250 " |
|
$5.00 " |
" |
|
|
Chapple |
200 " |
|
$5.00 |
" |
|
|
|
|
|
|
|
|
2006 |
Chapple |
470
cubic |
yards |
$5.00
cubic |
yard |
|
|
Castaways
Park |
140 " |
|
$5.00 " |
" |
|
|
|
|
|
|
|
|
2007 |
No
Bids Received |
|
|
|
|
The 2007 Invitations to Bid set no
minimum bid price and received no bids for Homer Spit use.
The City owns approximately 20,000
cubic yards of stockpiled material stored at the ACOE deposit site near Pier
One Theatre. The ACOE has requested that the deposit site be cleared before the
April dredging commences. The City can anticipate an additional 16,000 cubic
yards of material available for sale or use in 2007.
RECOMMENDATION:
Direct City
Administration to re-advertise the Invitation to Bid for City owned 2007 dredge
spoils without use restrictions.
JUSTIFICATION:
The City received no bids at $5.00 per cubic yard
minimum bid price for Homer Spit use in 2006. Two sales were negotiated at the
minimum price from the small bidders reserve. The City
received no bids for Spit use with no
minimum dollar amount for 2007. The
City has no identified projects on the Homer Spit budgeted and permitted that
will require the volume of material estimated to be available in 2007.
Estimated rough order of magnitude cost to move the existing stockpile by
private contractor is $50,000. Truck costs are estimated at $95 an hour and
loader costs are $150 to $200 an hour depending on size. The City has not identified
an alternative deposit site and estimated driving time to that site is
necessary to refine estimates. There are
approximately 1,500 dump truck loads of material at the deposit site.
Potential revenue from the sale of
2007 dredge spoils is approximately $150,000.