MEMORANDUM

TO: Ronald Drathman, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Mike Navarre, Mayor

THRU: Jeff Sinz, Director of Finance

FROM: Walter Robson, PW/MPD Manager

DATE: July 13, 1999

SUBJECT: Resolution 99- KENAI RIVER CENTER

The Finance Department solicited and opened bids for this capital project on June 30, 1999. The invitation to bid was advertised in the Peninsula Clarion (June 3, 4, 5, & 10, 1999), Homer News (June 3, 10, & 17, 1999), Seward Phoenix Log (June 3, 10 & 17, 1999), and Anchorage Daily News (June 1, 12, & 19, 1999).

The base bid consists of providing all labor, material and equipment to construct a single story multi-agency office facility, including the associated 2 acres of site improvements, involving approximately 7,200 square feet of new construction. The bid document requested bids on the Base Bid, plus 5 Additive Alternates. Alternate #1 was to construct a gravel driveway, storage pad, and fencing, Alternate #2 was a sidewalk snowmelt system, Alternate #3 was to construct a covered storage building and wood fencing, Alternate #4 was to pave all driveways and parking areas, and Alternate #5 was to construct building area for future aquarium. The recommended bid exceeds the Architect's estimate as has occurred over several recent bids. This condition is due to elevated Title 36 wages, increased freight, significant cost increases in framing materials and a plethora of construction work. It should be noted that a portion of the paving will need to be completed in the summer of 2001 per City ordinance. Recommendation for this award is for Base Bid construction services only. However, adequate funds do exist to award the contract. Upon award, minor negotiations will occur to assure an adequate contingency.

The funding for this project is from the Capital Improvement Projects budget. All expenditures for this project will be charged to account number 409.21135.98007.49999.

The attached Resolution requests Award of Contract for this work to Blazy Construction for the Base Bid of $1,480,000.00.

Attachments: Resolution 99-

Bid Tabulation