MEMORANDUM 09-98

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: July 31, 2009

Subject: HERC Boiler Installation

Construction Contract Award Recommendations

Public Works opened bids for the above referenced project on July 30. Three bids were received:

Bidder Office Location Bid

Peninsula Plumbing & Heating Soldotna AK $ 39,500

Steiner’s North Star Construction Homer, AK $ 32,970

Sunland Development (Glen’s Mechanical) Homer, AK $ 26,900

Engineer’s Estimate $ 30,000

Public Works has reviewed the bids. The low bidder is Glen’s Mechanical of Homer, 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 a local bidder (office within City limits).

The project budget approved by the City Council is $64,000. The low bid received will put total project cost within the project budget:

Engineering and inspection $16,000

Single Boiler Installation: $26,900

Boiler Purchase: $12,096

Contingency (10%): $ 6,000

Total Anticipated Project Cost - $61,000

Recommendation: The City Council award the construction contract for this project to Glen’s Mechanical, Homer, Alaska in the amount of $26,900 and authorize the City Manager to execute all appropriate documents.

(Fiscal Note: 100-140)