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Home My WebLink AboutResolution No. 2015-63Suggested by: Administration CITY OF KENAI RESOLUTION NO. 2015 -63 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE CITY MANAGER TO PROVIDE $333,000 TO THE DEPARTMENT OF THE ARMY, CORPS OF ENGINEERS, TO COMPLETE A FEASIBILITY STUDY FOR THE KENAI RIVER BLUFF EROSION PROJECT. WHEREAS, the City of Kenai entered into a Feasibility/Cost Sharing Agreement (hereafter Agreement) for the Kenai Bluffs Bank Stabilization Section 116 Feasibility Study (hereafter Study) on May 12, 2015 with the Department of the Army, Corps of Engineers (hereafter COE); and, WHEREAS, at that time, the cost estimate for the Study was $654,000 and the City of Kenai's share was $252,000, which has been paid to the COE; and, WHEREAS, Article IV, Paragraph B.2 of the Agreement provides that if additional funds are required the COE will notify the Non - Federal Sponsor in writing, and the Non - Federal Sponsor shall provide such funds; and, WHEREAS, the City of Kenai received a letter from the COE dated October 1, 2015 notifying the City of Kenai that the current estimate for the Study cost is $1,170,000, resulting in an increase of $333,000 for the City of Kenai's share of the study; and WHEREAS, the State of Alaska has provided appropriations in the total amount of $4,000,000 to the City of Kenai for this project which may be used for the non - Federal Sponsor's contribution; and, WHEREAS, for the project to move forward it is necessary to prepare the final Feasibility Study which will include the following tasks: 1. Project Management 2. Project Formulation 3. Economic Analyses 4. Environmental Coordination and Completion of National Environmental Policy Act (NEPA) Documentation 5. A Biological Assessment of Beluga Whales in the Kenai River below the Warren Ames Bridge, submitted to the National Marine Fisheries Service (NMFS) 6. A Biological Assessment of Steller Sea Lions at the mouth of the Kenai River, submitted to the NMFS Resolution No. 2015 -63 Page 2 of 2 7. Real Estate Documentation 8. Engineering 9. Cost Estimating ; and, NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the City Manager is authorized to provide funding to the Department of the Army, Corps of Engineers in the amount of $333,000 to complete a Feasibility Study for the Kenai River Bluff Erosion Project. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21th day of October, 2015. Approved by Finance: PAT PORTS , MAYOR "Villaye with a Past, C# with a Future ZI 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 trlZ._d -.► X Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 \\ fire aly of 1992 V MEMO* TO: City Council FROM: Rick Koch DATE: October 14, 2015 SUBJECT: Resolution 2015 -63, Kenai Bluffs Bank Stabilization Section 116 Feasibility Study The purpose of this correspondence is to recommend Council adoption of the above referenced Resolution. Adoption of Resolution 2015 -63 will authorize the City Manager to provide additional funding in the amount of $333,000 to the U.S. Corps of Engineers (hereafter COE) to accomplish the Section 116 Feasibility Study for the Bluff Erosion Project. When the cost sharing agreement was executed on May 12, 2015, the cost estimate for the Study was $654,000. Following the initial phases of the work, the COE re- estimated the cost for the tasks required to complete the Study and increased the estimate to $1,170,000. This requires the City of Kenai to increase its share of the funding for the Study by $333,000. The City received $4 million in appropriations from the State in support of this project, of which approximately $3,750,000 remain unexpended and will be used for this purpose. If you have any questions, please contact me at your convenience. DEPARTMENT OF THE ARMY ALASKA DISTRICT, U.S. ARMY CORPS OF ENGINEERS P.O. BOX 6898 JBER, AK 99506.0898 1 October 2015 Project Management Branch -Civil Mr. Rick Koch City Manager City of Kenai 210 Fidalgo Avenue Kenai, Alaska 99611 Dear Mr. Koch: This letter is to notify you in accordance with Article IV, Paragraph B.2 of the Feasibility Cost Sharing Agreement, entered into on May 12, 2015, of the additional funding requirement for the Kenai Bluffs Bank Stabilization Section 116 Feasibility Study, Kenai, Alaska as a result of an increase in the total study cost. The total cost of the study, as identified in the aforementioned Feasibility Cost Sharing Agreement, was estimated at $654,000, of which the City of Kenai's projected required amount was $252,000. The City of Kenai has provided these funds to date. After the Planning Charette meeting held in Kenai on May 4 -5, 2015, the scope and cost were reevaluated, and the total study cost increased to an estimated $1,170,000, with the City of Kenai's required funding now projected to be $585,000. The main increases to the estimated cost of the study were due to the cost of Real Estate appraisals and certified reviews, economic analysis cost increases, and alternative development costs. This amount also assumes that the Independent External Peer Review, which was originally 100 percent federally funded, will no longer be required. This results in an estimated increase of $333,000 in required funds from the City of Kenai to complete the study. Please send the Corps a check for $333,000 payable to "FAO, USAED, Alaska District" and mail it to the District Engineer at the above address. Note on the check or attached stub that the funds are for the Kenai Bluffs Bank Stabilization Section 116 Feasibility Study, Kenai, Alaska. If you have any questions, please contact me at (907) 753 -2668 or at david .a.martinson @usace. army. mif. ✓ Y David Martinson COE Project Manager Suggested by: Administration CITY OF KENAI LUTION NO. 2014 -34 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH THE DEPARTMENT OF THE ARMY TO COMPLETE A FEASIBILITY STUDY FOR THE KENAI RIVER BLUFF EROSION PROJECT. WHEREAS, the Secretary of the Army is authorized by Section 116 of the Energy and Water Development and Related Agencies Appropriations Act, 2010, Public Law 111- 85 to carry out structural and non - structural projects for storm damage prevention and reduction, coastal erosion, and ice and glacial damage in Alaska, including relocation of affected communities and construction of replacement facilities; and, WHEREAS, the Lower Kenai River has eroded the Kenai River Bluff through the original town site of Kenai at an estimated rate of three feet per year, causing the loss of public and private infrastructure, buildings, and lands; and, WHEREAS, the Department of the Army, Corps of Engineers, has received multiple Congressional appropriations to undertake planning and studies to determine the feasibility of the construction of an erosion control structure to halt the erosion of the Kenai River Bluff in the area of the original town site of Kenai; and, WHEREAS, Section 105(a) of the Water Resources Development Act of 1986, Public Law 99 -662, as amended (33 U.S.0 2215(a)), specifies the cost sharing requirements applicable to this study, which requires a fifty percent (50 %) local share for costs which exceed $100,000; and, WHEREAS, the total estimated cost of the study is $654,000, and the estimated non- Federal Sponsor's contribution is $327,000; and, WHEREAS, the State of Alaska has provided appropriations in the total amount of $4,000,000 to the City of Kenai for this project which may be used for the non - Federal Sponsor's contribution; and, WHEREAS, for the project to move forward it is necessary to prepare the final Feasibility Study which will include the following tasks: 1. Project Management 2. Project Formulation 3. Economic Analyses 4. Environmental Coordination and Completion of National Environmental Policy Act (NEPA) Documentation New Text Underlined; [DELETED TEXT BRACKETED Resolution No. 2014 -34 Page 2 of 2 5. A Biological Assessment of Beluga Whales in the Kenai River below the Warren Ames Bridge, submitted to the National Marine Fisheries Service (NMFS) 6. A Biological Assessment of Steller Sea Lions at the mouth of the Kenai River, submitted to the NMFS 7. Real Estate Documentation 8. Engineering 9. Cost Estimating ;and, WHEREAS, Resolution 2011 -67 passed by the Kenai City Council on September 21st, 2011, provided authorization for the City Manager to enter into a similar agreement in the amount of $253,844.50, but project delays resulted in no such agreement being executed. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the City Manager is authorized to enter into an agreement with the Department of the Army in the amount of $327,000 to complete a Feasibility Study for the Kenai River Bluff Erosion Project. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of May, 2014. A T: S a Modigh, dity Clerk / Approved by Finance: I - /--t-