MEMORANDUM #09-80

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: June 2, 2009

Subject: Reber Trail Construction

Contract Award Recommendations

Public Works opened bids for the above referenced project on June 2. Three bids were received.

Bidder Office Location Base Bid

East Road Services Homer, AK $ 161,245

Arno Construction Kachemak City $ 142,984 (apparent low bidder)

Twin Peaks Anchor Point $ 217,816

Engineer’s Estimate $156,000

Public Works has reviewed the bids. The apparent low bidder is Arno Construction, Kachemak City, Alaska. The low bidder’s qualifications have been reviewed and they have been determined to be qualified to complete this project. This project was bid with the City’s 5% local bidders preference requirements. The low bidder is not a local bidder (no office within City limits), but the second low bidder (with office in Homer) was more than 5% higher.

The budget approved by the City Council is $159,000 ($50,000 state grant, $109,000 HART). The low bid received will put total project cost slightly higher than the project budget:

Engineering $ 18,623

Construction $ 142,984

Advertisement $ 900

Total Project Cost $ 162,507

Upon completion of all work and with exact final costs known, Public Works will come back to the Council to secure formal approval to expend the small amount of additional funding (above that previously authorized) that will be required to complete this project.

Recommendation: The City Council award the construction contract for this project to Arno Construction, Kachemak City, Alaska for the base bid amount of $142.984 and authorize the City Manager to execute all appropriate documents. (Fiscal Note: 151-865)