MEMORANDUM 09-59

TO: Walt Wrede, City Manager

FROM: Carey Meyer, Public Works Director

DATE: April 20, 2009

RE: Kachemak Drive Water and Sewer (Phase II)

Approval to Contract Directly with Geotechnical Engineer

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As the design contract for the Kachemak Drive project was being formalized several years ago, Public Works requested the City Council approval contracting for design survey services directly with the selected survey firm. By removing this work from the overall design contract and contracting directly with the survey firm, the City saves the expense of a mark-up. The Council was very supportive and approved this approach.

Unfortunately, Public Works did not come back and secure formal approval to contract directly with the geotechnical investigation firm – Duane Miller and Associates. The Council has already approved the scope of the design effort and the cost of design(including the geotechnical work) by establishing a budget for the project.

Without formally approving the direct contract with the geotechnical firm, there will remain a question about conformance with procurement regulations; and the City will have difficulty making all payments to the geotechnical firm and securing reimbursement through ADEC.

This is a result of an oversight by the Public Works Director. The situation needs to be corrected.

Recommendation:

1) By resolution, the City Council authorize a direct contract with the firm – Duane Miller and Associates, Anchorage, Alaska, for geotechnical engineering services, as part of the design of the Kachemak Drive Water and Sewer Project (Phase II),

2) Authorize the City Manager to execute a Purchase Order to formalize a contract directly with the firm.