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HomeMy WebLinkAboutOrdinance No. 2912-2016Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2912 -2016 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A GRANT FROM THE FEDERAL AVIATION ADMINISTRATION FOR THE 2016 IMPROVED AIRPORT DRAINAGE PROJECT AND AWARDING A CONSTRUCTION CONTRACT TO PENINSULA CONSTRUCTION, INC. WHEREAS, the float plane basin level control structure at the Kenai Municipal Airport that was installed in 1986, has exceeded its useful life and is failing; two sinkholes which have opened up over the runway storm drain pipe system in the runway safety area also need repair; and, WHEREAS, the Federal Aviation Administration agreed that the replacement of the level control structure and the sink hole repair is grant eligible; and WHEREAS, the Administration has received confirmation these services are eligible for 93.75% FAA reimbursement, $355,915, with the remaining and 6.25% of project costs, $23,728 to be provided by the City of Kenai; and, WHEREAS, the Airport has already provided it's required 6.25% match of $ 23,728 for design of the project; and, WHEREAS, one bid was received and Peninsula Construction, Inc. is a responsive bid; and, WHEREAS, award of the bid to Peninsula Construction, Inc. would be in the best interest of the City; and, WHEREAS, the recommendation from City Administration is to award the contract to Peninsula Construction, Inc. for the total cost of $331,725. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA Section 1. Form. That this is a non -code ordinance. Section 2. That the City Manager is authorized to accept a grant from the Federal Aviation Administration in the amount of $355,915 and to expend the funds in accordance with the grant provisions. Section 3. That estimated revenues and appropriations be increased as follows: Airport Improvement Capital Project Fund Increase Estimated Revenues New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2912 -2016 Page 2 of 2 Federal Grant 355 91 Increase Appropriations Construction $331,725 Administration 4 1 0 15 Section 4. The agreement for the project entitled "2016 IMPROVED AIRPORT DRAINAGE PROJECT" be awarded to Peninsula Construction, Inc., at a total cost of $331,725. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of September, 2016. NAI PAT PORTER, MAYOR c L. A � u+ v rP San r Modigh, Cler OtjN ED 11e Approved by Finance: Introduced: August 17, 2016 Adopted: September 7, 2016 Effective: September 7, 2016 New Text Underlined; [DELETED TEXT BRACKETED] Municipal Airport Memo 305 N. WILLOW ST. SURE 200 KBM, ALASKA 99611 TELEPHONE 907283-7951 FAX 9072833737 To: Rick R. Koch - City Manager From: Mary Bondurant — Airport an er Date: August 9, 2016 l Subject: Ordinance 2912 -2016 The bid opening for the 2016 Improved Airfield Drainage Project was held on Tuesday, July 26, 2016; one bid was received. Wince- Corthell- Bryson evaluated the bid which was found to be complete and responsive; and recommends award of the project to the responsive bidder. I agree and recommend awarding the project to Peninsula Construction, Inc. to complete this important project. Please contact me if you have any questions. Attachment Cc: Terry Eubank — Finance Director Sean Wedemeyer — Public Works www.kenaiairport.com. WINCE -C O RTH E LL -B RYSO N BOX 1041 KENAI, ALASKA 99611 PH: 907 - 283 -4672 August 3, 2016 City of Kenai 210 Fidalgo Avenue Kenai, Alaska 99611 Attention: Sean Wedemeyer, Director Public Works Mary Bondurant, Airport Manager Subject: 2016 Improved Airport Drainage Project Bidder Evaluations and Recommendation for Award Bids were received at City Hall by 2:00 PM Tuesday July 26, 2016. One bidder submitted, has been determined responsive with the amount bid as listed below. Bidding Company Basic Bid Peninsula Construction, Inc. $331,725.00 Engineers Estimate $170,000.00 The Project was advertised on June 17 and 23 in the Anchorage Daily News and the Peninsula Clarion, posted on the City Web Site and sent to the several plans rooms. Five contractors were registered on the plan holders list and all either attended the pre -bid conference on June 28 and or contacted the City of Kenai with questions prompting the issuance of three addendums answering questions and extending the bid date from July 7 to July 28. In accordance with the guidance provided in the Airport Sponsor Guide — 400, Section 430 - Procurement Methods, the four other plans holders were reached out to, via E -Mail on July 28, for comments on the bid process and /or reason for not submitting a bid. To date no feedback has been received. Based on the extended advertisement period, the interest shown at the pre -bid conference and the questions received and responded to it is apparent that a fair and competitive bid process was provided for the project. In the engineers opinion the bid received is high for the scope of work required by the plans and specifications however does not recommend rebidding the project for the following reasons. 1. Rebidding would delay the work into winter conditions or summer conditions with the water level at operations level which would not reduce the price significantly. 2. Rebidding for a October 2017 start date may result in a more competitive bidding environment and lower prices however would put the City at risk of the level control structure failing allowing an uncontrolled release of the float plane basin with potential of taking out the water main fill road to the south and damaging the Kenai Spur Road section further to the south. The Engineers revisited the structure today and found it in much worse condition than the November 2014 inspection with nearly all the basin outflow passing through the standpipe's corroded shell despite the temporary repair made at that time. Considering the risk and that the City Share for going ahead with this project, as bid, would be less than $25,000.00 it is the engineer's recommendation to award the project, as bid to Peninsula Construction in the amount of $331,725.00, Sincerely Casey M dden, P.E. Wince- Corthell -Bryson