MEMORANDUM 09-86

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: June 18, 2009

Subject: Freight Dock Road Paving Project

Construction Contract Award Recommendations

Public Works opened bids for the above referenced project on June 18. Two bids were received.

Bidder Office Location Base Bid

Peninsula Asphalt Paving, Inc. Nikiski, AK $ 206,396.50

Alaska Road Builders, Inc. Kachemak City $ 247,700.00

Engineer’s Estimate $217,000.00

Public Works has reviewed the bids. The apparent low bidder is Peninsula Asphalt Paving, Inc. of Nikiski, AK. 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. None of the bidders were local (no office within City limits).

The budget approved by the City Council is $275,000. The low bid received will put total project costs within the project budget:

Engineering $ 11,000

Construction $ 206,396

Other Construction Costs $ 15,000

Advertisement $ 900

Contingency (5%) $ 12,500

Total Estimated Project Cost = $ 245,796

Recommendation: The City Council award the construction contract for this project to Peninsula Asphalt Paving, Inc. of Nikiski, AK in the amount of $206,396.50 and authorize the City Manager to execute all appropriate documents necessary to complete the project.

(Fiscal Note: 160-770)