HomeMy WebLinkAboutResolution No. 2006-41CITY OF KENAI
RESOLUTION NO. 2006-41
Suggested by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REJECTING ALL
BIDS FOR THE PROJECT ENTITLED SET NET DRIVE LID - 2006 - VIP DRIVE TO
WATERGATE WAY.
WHEREAS, the following bids were received on July 12, 2006:
Bidder Basic Bid
Alaska Roadbuilders,Inc. $249,764
North Star Pavin & Construction, Inc. $299,193
En ineer's Estimate $179,039
;and,
WHEREAS, all bids are significantly in excess of the engineer's estimate; and,
WHEREAS, the recommendation from City Administration is to reject all bids and re-
bid the project prior to the 2007 construction season.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that all bids for the project entitled Set Net Drive LID - 2006 - VIP Drive To
Watergate Way be rejected.
PASSED BY THE COUNCIL OF THE CITY OF K AI, ALASKA, this 19th day of July,
2006. ~
~J ~~9 ~~.~J
PAT PORTER, MAYOR
A'M'EST:
__-~°~: %,iL-~a~i/Gs'
Carol L. Freas, City Clerk
Approved by Finance: ._
`>~'lfa~e wit~i ~ l~ast Gi r~it~a a F~~tr~~'e„
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 ! Fax: (907) 283-3014
www.ci.kenai.ak.us
MEMORANDITM
To: c~ty co,~~~
~ From: Rick Koch, City iVlanager
Date: 7uiy 13, 2006
Subject: Set Net Drive LID ~~- 2006 - ViP Drive to Watergate Way
The purpose of Yhis coirespondence is to recommend the City Councii reject all bids for
the above referenced proj ect
I`wo bids were received far the project. I`he Iow bidder Alaska Roadbuiidcrs, Inc,
submitted a bid for ~ 249,764. The low bid was $ 70,725, or 39.5 % higher than the
engineer's estimate of $ 179,039.
The middle of Juiy is~generally noC conducive to a com~petirive bidding environment, as
znany conLractors already have booked a su~Fficient quanrity of work for the year.
I stiiggest fhat all bids be rejected. The bid documents, within Instruction to Bidders,
paragraph T, provides "City reserves the right to reject any and a11 bids,..." .
It is our intent to combine flus project with several other projects of sim~lar scope (city
parkin~ lots, and ~VlcCollum-Aliak LID} and bid the projeet in February/March oF 2007.
Thank you for your attention in this matter
July 14, 2006
«OWNER»
«ADDRESS2»
«CITY», «ST» «ZIP»
Dear Property Owner:
Subject: Set Net Drive LID - 2006
Enclosed is a new "Preliminary Assessment RoII (After Bid - Before Construction)" that includes
the property that you own at «ADD» «STREET». The City opened construction bids on this
project on July 12, 2006. The lowest construction bid, $249,764 from Alaska Roadbuilders, Inc.,
was $63,079 higher than the preliminary assessment roll estimate of $186,000 before the
project was bid.
I have inciuded a column in the spreadsheet for "Pre-Bid Own Pay" which is the owner's cost
estimate before the project bid. (Totai $91,777) Another column lists the "After Bid Own Pay"
which is what the owner is now expected to pay. (Total $114,974) The construction cost is
based on an estimated quantity at a unit bid price. The cost to the owner will be based on the
actual cost of the total project after all the work is done.
The award of this project to Alaska Roadbuilders, Inc. will be presented to the City Council at
their meeting on July 19, 2006, in the Council Chambers in City Hall starting at 7 p.m.
The City Administration is recommending that all bids be rejected because of the high
construction costs. The recommendation includes re-bidding this project with other paving
projects this winter for construction in 2007. We hope the costs will be lower then.
Please feel free to call me at 283-8232 if you have any questions or comments. You are always
welcome to attend City Council meetings.
Sincerely,
Keith Kornelis
Public Works Manager
KK/jet ~
Enclosure
cc: Rick Koch, City Manager
Larry Semmens, Finance Director
-'' ------------~---' ~
__ Set fVe# ~rive - frorri i/IP to
_ t
' ~
PRE~lI~IIRIARY ASSES~NIEIV°C R~LL (After
~ - -- , -
--- - -- '-- ~
Public H~arirrg 11/2/05 Co-ancil said cit
,
~ .. ' I
- -- - -
*******Based on properQy ~wners payiny proportionall~
_ _ __
Below costs are estimates - final cost will be based o
--__ - ---
Propertoes 4o be assessed: See Propertv C
I'# ~OWPIER ~ Address -- 1-ACRE ~ Feet ~ csf Total I AssB$ ~ZAss. $ I 1Esto $ ff~E to $f ~ Owes P,av~OwnrPa'v ~
Johnson
Whannell
29
1.111 48,352 0.09&271 1
11.53I502,247I 1.OOOOQO
EstimaYe i
-
3.000 I I Muni
Owners
25 04~
--
22,58i
26.761
13,012 i
- 10,113 ' 13
11,294 ii
8 777 -.__
11
13,012 1 10,113 I 13
12 521 3,625
~ 3
19 294 3
13,381 I
_
16.815
26,516 ~ 13 258 ~ 10 304 i 13,258
-- = - -
27 252 , 13 626 3 625 , 3,625
283,079 141,540 , 91,777 ~~ 114,974
Prepared by Keith Karnelis 7/13/2006
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