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HomeMy WebLinkAboutOrdinance No. 2860-2015/ I, ,;,;i Suggested by: Administration KENAI, ALASKA SUBSTITUTE U CITY OF KENAI ORDINANCE NO. 2860 -2015 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCPETING AND RETROACTIVELY INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $1,878,800 IN THE WATER AND SEWER CAPITAL PROJECT FUND FOR CONSTRUCTION OF WATER SYSTEM IMPROVEMENTS. WHEREAS, in 2013 the City received, accepted but never appropriated a $1,878,800 Municipal Matching Grant (MMG) from the State of Alaska for extension of a water main from the Spur Highway side of Beaver Loop Road to approximately Angler Drive; and, WHEREAS, Resolution 2013 -13 provided authorization for the City Manager to accept this grant; and, WHEREAS, due to delays in construction of improvement to Beaver Loop Road the City was unable to expend these funds for that purpose by the end of the grant period; and, WHEREAS, during the 2014/2015 legislative session the administration requested and successfully received a reappropriation of this grant for City of Kenai Water System Improvements; and, WHEREAS, as a result of the reappropriation a new grant award has been issued requiring a new grant acceptance and appropriation; and, WHEREAS, the new grant authorizes expenditure of funds for planning, design and construction of needed water system improvements to increase water production, improve water treatment, upgrade water storage capacity, and provide other necessary improvements to meet the Environmental Protection Agency arsenic rule and improve delivery of good quality water to the community; and, WHEREAS, this grant requires a 30 %, $805,200, local match which will be provided by an existing grant from the State of Alaska Department of Commerce, Community, and Economic Development; and, WHEREAS, the effective date of the grant award is July 1, 2015 requiring retroactive appropriation so costs expended on the project since July 1, 2015 can be reported as grant expenditures. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: Form: That this is a non -code ordinance. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2860 -2015 Substitute Page 2 of 2 Section 2: That the City Manager is authorized to accept funds in the amount of $1,878,800 from the State of Alaska Department of Environmental Conservation and to expend the funds to fulfill purpose of the grant and the purpose and intent of this ordinance. Section 3: That estimated revenues and appropriations be decreased as follows: Water and Sewer Capital Project Fund Increase Estimated Revenues: State Grants $1,878,800 Increase Appropriations: Water System Improvements Construction $1,878,800 Section 4: Due to special grant conditions the effective date of this appropriation will be retroactive to July 1, 2015. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 4h day of November, 2015. PAT PORTER, MAYOR Clerk Approved by Finance: Introduced: October 21, 2015 Adopted: November 4, 2015 Effective: July 1, 2015 New Text Underlined; [DELETED TEXT BRACKETED] LW To: Mayor Porter Council Members "Villaye with a Past, C# with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -75351 FAX: 907 - 283 -3014 From: Terry Eubank, Finance Director !!! hru: Rick Koch, City Manager Date: November 3, 2015 Re: Substitute Ordinance 2860 -2015 The purpose of this memo is to request adoption of Substitute Ordinance 2860 -2015. Since drafting of Ordinance 2860 -2015 the administration has received an entirely new grant offer from the State of Alaska Department of Environmental Conservation (ADEC) for the reappropriated funds from Municipal Matching Grant (MMG) No. 47553. The administration was unaware ADEC would be issuing an entirely new grant as result of the reappropriation. Attached is a grant offer for MMG No. 47554 from ADEC which requires Council authorization to accept and requires appropriation for the expending of funds. The grant offer established July 1, 2015 as the start date for eligible expenditures. A July 1, 2015 start date for eligible expenditures requires retroactive appropriation of the grant so all cost expended since July 1, 2015 can be reported and recovered under this new grant. Approximately $20,000 has been expended since July 15` that can be redirected to this new grant. Your support for passage of the substitute is appreciated. THE STATE Department of Environmental 01AA �` Conservation j1j'�V DIVISION OF WATER 2� October 23; 2015 GOVERNOR BILL L'VALKER Mr. Rick Koch City Manager City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 l 2 ?R'0 i 0 RE: Grant Offer — Kenai - Water System Improvements (MMG No. 47554) Dear Mr. Koch: Post Office Box 111800 Juneau, Alaska 99811 -1800 Main: 907.465.5300 Fax: 907.465.5177 www.dec.alaska.gov Enclosed for signature is the Grant Offer in the amount of $1,878,800 for the Water System Improvements Municipal Matching Grant No. 47554. This grant represents the scope of work change and name change that was approved in the State fiscal year 2016 Capital Bill SB26. Because of the significant impact this legislation had on Municipal Matching Grant No. 47553, the department has elected to close MMG No. 47553 and replace it with MMG No. 47554. If satisfactory, please sign and return the original, along with a formal resolution. In the resolution the Grantee must agree to accept responsibility to operate and maintain the proposed water utility improvements and agree to the terms and conditions of the grant offer. Please return the signed original grant offer and resolution to the following address: Alaska Department of Environmental Conservation Division of Water, Municipal Matching Grants & Loans Program Attn: MAT (Municipal Administrative Team) P.O. Box 111800 410 Willoughby Avenue, Suite 303 Juneau, AK 99811 -1800 Upon receiving the signed original grant offer and resolution, the Department will proceed with the final signature. Once the grant offer is fully signed, a copy of the fully signed document will be e- mailed to you for your records. If you have any questions regarding this grant offer you may contact Mike Lewis, Municipal Grants and Loans Program Manager at 907- 269 -7616 or Beth Vettelli, Project Engineer at 907 - 269 -7603. cerely, /It d--C' GL bia Michelle Hale Director Enclosure: MMG No. 47554 Grant Offer Page 2 of 2 City of Kenai MMG # 47554 THE STATE ®��LAS Department of Environmental Conservation GOVERNOR BILL WALKER DIVISION OF WATER Post Office Box 111800 Juneau, Alaska 99811 -1800 Main: 907.465.5300 Fax: 907.465.5177 www.dec.alaska.gov October 27, 2015 Mr. Rick Koch City Manager City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 Grant Offer: Kenai - Water System Improvements (MMG No. 47554) Dear Mr. Koch: In accordance with AS 46.03.030, the Department of Environmental Conservation (Department) is pleased to offer the City of Kenai (Grantee) a grant of funds not to exceed $1,878,800. Project Description: This grant will provide for planning, design and construction of needed water system improvements to increase water production, improve water treatment, upgrade water storage capacity, and provide other necessary improvements to meet the Environmental Protection Agency arsenic rule and improve delivery of good quality water to the community. The estimated cost for this project, as provided by the Grantee, is $2,684,000. However, pursuant to AS 46.03.030(e), the grant amount is limited to the available appropriation of $1,878,800, and 70 percent of eligible project costs. To receive the full amount of grant funding available, eligible project costs must total at least $2,684,000 (70 percent of this amount is equal to the funding available in this grant.) This grant will be administered by the Department using fends which were originally included in the State fiscal year 2013 capital budget bill (SB160) allocation for this project. A scope of work change and name change was approved in the State fiscal year 2016 capital budget bill (SB26), which allows for an expanded scope of work. This grant is 100% funded by state general funds. This offer is expressly conditioned upon the Grantee accepting the offer and agreeing to comply with the terms and limitations contained herein, in 2 AAC 45.010 (enclosed), in 18 AAC 73 (enclosed), and is based upon estimated eligible project costs as itemized below: City of Kenai MMG # 47554 Giant Agreement Project Cost Summary sts 1. Administrative ,012 2. Engineering Desig n ,788 3. Engineering Construction ,735 4. Construction ,823 5. Equipment gl$1,878,800 $0 6. Other $0 7. Project Contingencies ,642 8. Total Estimated Eligible Project Costs ,000 9. State Grant 800 Adjustment of expenditures within the budgeted cost items is allowed. If actual project costs are less than the total estimated eligible matching costs, the grant will be reduced to the extent necessary to comply with the percentage limitation set forth in this offer. Grant payments will be made when expenses have been incurred and documentation has been provided to the Department along with the payment request form, unless a payment schedule is established as a special condition of this grant. Payments will normally be made monthly, but no more frequently than twice per month. All requests for payment must be submitted on the enclosed Request for Payment form. The Request for Payment form can also be found at: http://dec.alaska.gov/,water/munigtant/foxins.htn-il. The Grantee should scan the Request for Payment Form and backup documentation and e-mail it both to the project engineer for eligibility review, and to the Municipal Administrative Team (MAT) at: Beth.vettelli @alaska.gov DEC.Water.MGL.MAT@alaska.gov Mail the original signed Request for Payment Form to the address noted below; backup documentation to the pay request does not need to be mailed. If the Grantee does not have scanning capability, the Request for Payment Form and backup documentation should be mailed to: Alaska Department of Environmental Conservation Division of Water, Municipal Matching Grants & Loans Program Attn: MAT (Municipal Administrative Team) P.O. Box 111800 410 Willoughby Avenue, Suite 303 Juneau, AK 99811 -1800 Page 2 of 6 City of Kenai MMG # 47554 Grant Agreement Pay request(s) totaling less than one thousand dollars may be held for payment until the one thousand dollar threshold is met. Upon the threshold being met, the Department will proceed with payment. GENERAL GRANT CONDITIONS Plan Approval: The Grantee agrees to obtain plan and specification approval from the Department in accordance with 18 AAC 73.020 prior to issuing a Notice to Proceed with Construction to a contractor. 2. Contract Award and Contractor Bonding Requirements: a. The Grantee agrees to bid construction contracts exceeding $50,000. Adequate time (not less than 30 days, unless an alternative method is approved by the Department) shall be allowed between the date of formal advertisement and the date the bids must be submitted. b. The Grantee agrees to submit procedures for award of construction contracts of less than $50,000 to the Department for prior approval when means other than the competitive bidding process are proposed. C. The Grantee must require the contractor to famish performance and payment bonds in accordance with AS 36.25.010. d. If local or federal ordinances or regulations also apply to the contract award or contractor bonding requirements for this project, the most stringent requirements shall apply. e. The Grantee agrees to provide the Department with a summary of itemized bid tabulations, a copy of the Notice to Proceed, and a copy of the construction contract. 3. Change Orders: The Grantee agrees that all project change orders will be submitted to the Department for approval in accordance with 18 AAC 73.020(e). 4. Project Completion: The Grantee agrees to provide sufficient local funding to match State and federal grant assistance and to ensure the completion of a properly functioning project in accordance with 18 AAC 73.0200). 5. Operation and Maintenance: The Grantee agrees to operate and maintain the completed project. 6. Titles and Easements: The Grantee agrees to obtain all titles and easements necessary to provide clear title or authority to construct and maintain the proposed project. Eligibility: The Grantee acknowledges that disbursement of progress payments by the State does not constitute acceptance of any item as an eligible project cost until all project costs are audited and determined to be eligible. Ineligible project costs must be included in the final audit report. Page 3 of 6 City of Kenai MMG # 47554 Grant Agreement 8. Inspection: The Grantee agrees to allow, at any reasonable time, Department inspection of all project work and audit of related records and data for which this grant is offered. 9. Records: The Grantee agrees to maintain project accounts and records which verify the grant eligibility of project expenditures. These accounts and records shall be kept apart from non- grant eligible local records and from those records maintained for the purpose of other State or federal grant programs involved in the project. 10. Progress Reports: The Grantee agrees to submit progress reports on the proposed project with each payment request or at a minimum, quarterly. 11. Construction Start Date: The Department will in its discretion, withdraw an accepted grant if construction has not been started within one year after the date of the offer was extended in accordance with 18AAC 73.030 (fl. 12. Grant Term Date: Funds made available to a grantee under a fully executed signed grant agreement by the Department shall be expended and invoiced by May 1, 2017. The Department may cancel the grant and seek to have the funds de- obligated. The final pay request must be received by the Department by May 1, 2017. 13. Remaining Funds after Project Completion: If the entire grant amount is not utilized for the original scope of work, the Department will seek to de- obligate the remaining funds. 14. Americans with Disabilities Act: The Grantee must certify that projects and services provided under this grant are made available to the general public in compliance with the Americans with Disabilities Act of 1990. 15. Discrimination: The Grantee agrees to administer this grant in a non - discriminatory manner. No person shall be discriminated against based on race, religion, color, national origin, gender or disability. 16. Damages: The Grantee shall hold and save the Department, its officers, agents, and employees harmless from liability of any kind, including costs and expenses, for or on account of any and all suits or damages of any nature, sustained by any person or persons or property, by virtue of performance of the grantee, or any person or entity acting in place of or for the Grantee for this project. 17. Grant Cancellation: The Grantee acknowledges the right of the Department to rescind this grant and seek recovery of payments already made if the Grantee has provided incorrect or misleading information to the Department or if a grant condition contained herein or in 18 AAC 73 is violated. This grant offer may be terminated at any time it is in the best interest of the State to do so. SPECIAL GRANT CONDITIONS For the purpose of grant eligible costs July 1, 2015 is the effective date of this grant offer. Page 4 of 6 City of Kenai MMG # 47554 Grant Agreement Please carefully review this grant offer, the related grant conditions, and the enclosed regulations. If satisfactory, sign and return the original, along with a formal resolution accepting the grant enacted by the City of Kenai. In the resolution the Grantee must agree to accept responsibility to operate and maintain the proposed water utility improvements and agree to the terms and conditions of this grant offer. Mail signed originals (grant offer and resolution) to the following address: Alaska Department of Environmental Conservation Division of Water, Municipal Matching Grants & Loans Program Attn: MAT (Municipal Administrative Team) P.O. Box 111800 410 Willoughby Avenue, Suite 303 Juneau, AK 99811 -1800 Acceptance of the grant is required within six months (180 days) of the date the grant offer is extended to prevent revocation of the offer. No payment can be made until this grant offer is signed by the Grantee and by the Department. Nothing in this offer, whether or not accepted, may be deemed to constitute a contractual obligation on the part of the Department until a resolution of acceptance has been received. The Department is pleased to offer this assistance to the people of Kenai. Sincerely, 2 1�44 Michelle Hale Director Enclosures: 2 AAC 45.010 Audit Guide and Compliance Supplement for State Single Audits 18 AAC 73.010 Construction Grant Project Eligibility Request for Payment Form cc: The Honorable John Coghill, Alaska State Senate The Honorable Tammie Wilson, Alaska State House of Representatives Beth Verrelli, ADEC Project Engineer Page 5 of 6 City of Kenai MMG # 47554 Grant Agreement BY SIGNING BELOW, THE PARTIES AGREE TO BE BOUND BY THE TERMS OF THIS AGREEMENT. City of Kenai Printed Name Title Signature Alaska Department ofEnvironmental Conservation Printed Name Title Signature Page 6 of 6 Date Date < /Xi Suggested by: Admini CITY OF KENAI ORDINANCE NO. 2860 -2015 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALA , INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $1,878,800 I THE WATER AND SEWER CAPITAL PROJECT CONSTRUCTION OF A NEW WAT R RESERVOIR AND RELATED PIPING /EQUIPMENT. WHEREAS, in 2013 the City received a $1,878,800 Mi from the State of Alaska for extension of a water main Beaver Loop Road to approximately Angler Drive; and, WHEREAS, Resolution 2013 -13 authorized the City WHEREAS, due to delays in construction of in will be unable to expend these funds for that and, a1 Matching Grant (MMG) the Spur Highway side of to accept this grant; and, nt to Beaver Loop Road the City by the end of the grant period; WHEREAS, during the 2014/2015 legislat' a session the administration requested and successfully received a reappropriation f this grant for City of Kenai Water System Improvements; and, WHEREAS, this grant requires a 3 %, 805,200, local match which will be provided by a grant from the State of Alaska partment of Commerce, Community, and Economic Development. NOW, THEREFORE, BE IT RDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: Form: Th this is a non -code ordinance. Section 2: That extimated revenues and appropriations be decreased as follows: Increase Esfimated Revenues: State rants $1,878,800 Incr se Appropriations: ew Water Storage Reservoir 8s Related Piping /Equipment Construction $1,878,800 New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2860 -2015 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 4h day of November, 2015. ATTEST: Sandra Modigh, City Clerk Approved by Finance: PAT PORTER, MAYOR Introduced: October 21, 2015 Adopted: November 4, 2015 Effective: November 4, 2015 New Text Underlined; ]DELETED TEXT BRACKETED] j 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535, Ext. 236 / FAX: (907) 283 -3014 " "Vlla�e with a Past, C# witk a Future \tlieu�uf MEMORANDUM KENA ALASKA TO: Rick Koch, City Manager FROM: Sean Wedemeyer, Public Works Director S/4 k/ DATE: October 14, 2015 SUBJECT: Ordinance appropriating funds for water projects This memo is in support of an ordinance appropriating funds for water projects. This $1,878,000 was originally intended to fund a water main extension on Beaver Loop. It was intended to be constructed at the same time Beaver Loop was improved by the State. Because the State did not accomplish their project before our funding was expiring administration requested and successfully received a re- appropriation of this grant. This ordinance appropriates the grant funding to our Water and Sewer Capital Project Fund. It will be used to construct the reservoir and other water related improvements. Thank you for your attention to this matter.