MEMORANDUM 09-94

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: July 21, 2009

Subject: Base of Spit Parking Expansion

Construction Contract Award Recommendations

Public Works opened bids for the above referenced project on June 16. Six bids were received.

Bidder Office Location Bid

Alaska Road Builders Soldotna AK $ 232,530

WM Construction Wasilla, AK $ 132,252

East Road Services Homer, AK $ 98,225

Homer Winter Services Homer, AK $ 102,869

Twin Peaks Construction Anchor Point, AK $ 89,690

Arno Construction Kachemak City, AK $ 76,434 (apparent low bidder)

Engineer’s Estimate $ 86,000

Public Works has reviewed the bids. The 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 $106,000. The low bid received will put total project cost within the project budget:

Recommendation: The City Council award the construction contract for this project to Arno Construction, Kachemak City, Alaska for the base bid amount of $76,434 and authorize the City Manager to execute all appropriate documents.

(Fiscal Note: 156-395)