MEMORANDUM #08-55

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: April 9, 2008

Subject: Homer Water Treatment Plant Upgrade

Award of Construction Inspection Contract

Public Works will be issuing the Award of the construction contract to Udelhoven Oilfield Services, Inc. later this week in conformance with Council’s approval received at the last meeting. Construction should begin in May.

The design team has involvement in the construction phase of this project. Shop drawings need to be reviewed and approved, record drawings prepared, submittals approved, design clarifications made, and regulatory operation permits prepared. Public Works has reviewed and approved a scope of work and is prepared to enter into a contract with HDR Alaska, Inc to provide these services. The Contract will include periodic, milestone inspections. Day to day inspections will be completed by Public Works staff with the assistance of a temporary full-time on-site inspector (hired locally).

The total contract amount is $398,710. The budget for this work is $550,000. The remaining budget will be used to fund the on-site inspector.

This work is funded through a low interest loan (1.5%) through ADEC and the Alaska Drinking Water revolving Loan Fund.

Recommendation: Approve the contract with HDR, Alaska, Inc in the amount of $398,710 for the completion on inspection and construction administration services for the Homer Water Treatment Plant Upgrade improvement project.