On April 12, 2006, the Kenai Peninsula Borough solicited bids for the 2006 Capital Improvement Projects (CIP) for Group A which, at that time, included Hutler Road. The Invitation To Bid for the Group A CIP’s was advertised in the Peninsula Clarion April 12, 17, and 19, 2006, and Seward Phoenix Log and Homer News on April 13 and 20, 2006. On the due date of May 4, 2006, 3 bids were received. Upon reviewing the total project costs against available FY2006 funds, staff realized there was not enough funding to award all the projects. The Road Service Area (RSA) board, at its May 10, 2006 meeting, supported deleting the Hutler Road project until future funding can be provided.

 

RSA staff and the administration support utilizing FY07 funding for this project as soon as these funds are available, which will be July 1, 2006. The KPB received 3 bids on the Hutler Road project, which include:

 

BIDDER BID AMOUNT

 

Arno Construction $223,478.00

Northfield Enterprises $270,422.00

East Road Services $283,260.00

 

The low bidder, Arno Construction, is qualified to perform the work and the bid amount is fair and reasonable. This resolution awards the project to Arno Construction for its bid amount.

 

Expenditure for this contract will be charged to account number: 434.33950.S7HUT.43011.

 

After the bid was received, the RSA calculated a total cost for the project that includes the design services, contract services, inter-departmental charges, advertising and contingency. The total project cost for the Hutler Road project is $249,681.69.

 

The total project cost will be available in the Road Service Area capital improvement budget fund 434.33950.00000.49999 on July 1, 2006, when the FY2007 budget becomes effective. The project costs will be set up in the projects contingency account. A project budget will then be set up to transfer funds to the project’s design services (49311), contract services (43011), advertising (43310), contingency and inter-departmental charges (61999) accounts.