MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Mark Fowler, Purchasing and Contracting Officer

FROM: Catherine Mayer, Solid Waste Director

DATE: October 1, 2004

SUBJECT: Resolution 2004-096; Authorizing Award of Contract for the Seward Transfer Facility, Operations and Maintenance

The Purchasing and Contracting Office solicited and opened bids for the above referenced project on October 1, 2004. The invitation to bid was advertised in the Peninsula Clarion, Seward Phoenix Log, and Homer News.

Two (2) bids were received and D & L Construction Co. Inc. submitted the lowest cost qualified and responsive bid of $528,142.00.

The work consists of furnishing all labor, equipment and materials necessary for operating and maintaining the Seward Transfer Facility, hauling waste to the Central Peninsula Landfill in Soldotna, operations of an inert waste monofill in Seward, and other work in accordance with the contract requirements.

The contract term is January 1, 2005 through December 31, 2007. This contract may be extended for up to two (2) additional years in accordance with the Agreement, the General Conditions and the Operations and Maintenance Workplan.

This project was originally bid in August and two bids were received. Unfortunately, both bids were rejected. Subsequently, the Solid Waste Department made some workplan modifications and the project was re-bid. This recommendation for award is the result of the re-bid.

Interest from contractors to operate solid waste sites has been minimal. In 1999, Alaska Landfills/Waste Management submitted the only bid for the Seward operations in the bid amount of $329,548, which was a substantial increase over the 1997 bid amount of $166,346. Prior to the 1999 award, the Assembly expressed concerns of bid costs and discussed that if future bid costs continued to increase with limited competition, the Borough should consider other operational options.

The basic scope of work is the same with each contract term; however, some items have increased in quantity, additional work tasks added, staffing levels increased as workload increases, fuel prices increase, cost of newer equipment is higher, and other factors.

As shown with past bid amounts and recent bidding, it is very difficult to budget and anticipate what contractors may bid even when project scope is clearly defined. The Solid Waste Department is committed to continued contracting of transfer and hauling services and recommends award of contract for this project.

The attached resolution requests approval for award of contract for this work. Funding is available in the solid waste-operating budget. Expenditures for the project will be charged to account 290.32150.43011.

Attachments: Resolution 2004-

Bid Tabulation