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Denali Borough increases contribution for Bear Creek fire repairs and approves contract award
Summary
Facing bids above state estimates, the Assembly amended Ordinance 26-11 to raise the borough contribution and authorized accepting up to the full bid amount from the state; the Assembly also approved a resolution awarding the contract to the lowest responsible bidder, with contingency for additional state reimbursement.
After bids for the Bear Creek Fire Repair and Recovery project came in materially higher than earlier state estimates, the Denali Borough Assembly amended and approved Ordinance 26-11 on July 28 to increase the borough’s contribution and to allow acceptance of additional state funds if those funds are awarded.
Administration reported the lowest responsible base bid was $414,052 and that additive alternates (fabric, classified material, additional culverts) raised the possible total. The Assembly amended the borough contribution from $165,000 to $178,000 and authorized staff to accept up to the full bid amount ($592,532) from the State of Alaska if the state revises its award. "We've received the bids for this project...the bids were higher than the state estimate," the mayor said, and the amendment was intended to ensure the base bid and mitigation alternates could be covered if the state updates its award.
The Assembly also amended and passed a related resolution to award the contract to the lowest responsible bidder (bidder listed in the procurement tabulation) and authorized award up to the same $592,532 contingency amount if state reimbursement materializes. Members discussed reimbursable terms, procurement language and how award acceptance would be handled if the state's contribution changes.
What happens next: staff will issue the contract in the amount supported by available funding; if the state increases its award, the Assembly expects to accept the additional funds on a reimbursable basis and may execute the larger award consistent with procurement code.
