MEMORANDUM

TO: Timothy Navarre, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Jeff Sinz, Finance Director

Richard Campbell, General Services Director

FROM: Max Best, Borough Surveyor

Rachel Navarre, Environmental Compliance Coordinator

SUBJECT: Resolution 2002-064, Authorizing Award of a Contract for the Nanwalek School Final Cleanup Action

DATE: May 9, 200

 The Finance Department, on behalf of the Land Management Division, solicited bids for remediation and excavation services and proposals for associated professional services for the Nanwalek Elementary/High School Final Cleanup action. Six bids and seven proposals were received. The lowest responsible bid was $179,600 and the highest scoring proposer's fees were $19,800, for a total of $199,400. The original budget for these portions of the project (including 15% contingency) was $141,450 and $25,875, respectively. If both of these contracts are funded, a shortfall of $32,054 would result.

The Nanwalek IRA Council represents the residents of the community of Nanwalek. After the bid process, the Council submitted the attached proposal offering to remediate the soil and perform all of the required professional services for a total of $161,651. This will result in a savings of $37,749 over the bid amounts, and provide some economic benefit and employment to the village. The Council will use the soil in an asphalt mix to pave a parking lot at the Nanwalek Health Clinic and Elder Care Facility. The Council will contract out applicable portions of the project, including the required professional services. The Council is in a unique position to offer this proposal since virtually all land in the area is owned by the Council or private individuals.

The legal department has determined the Council would be eligible for a consideration as a local government. If approved, the borough would enter into a sole-source, government-to-government contract with the Council to provide these services. In accordance with KPB 5.28.330, "Notwithstanding the other provisions of this chapter, the borough may enter into procurement agreements with the federal, state and other municipal governments when it is in the best interests of the borough to do so." The Council would still be required to provide 100% performance and payment bonds for the remediation and excavation portion of the project (approximately $105,000).

Your consideration in this matter is appreciated.