HomeMy WebLinkAboutOrdinance No. 3060-2019Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3060-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE TERMINAL IMPROVEMENTS
CAPITAL FUND, AND AUTHORIZING AN INCREASE TO THE CONSTRUCTION PURCHASE
ORDER TO BLAZY CONSTRUCTION, INC.
WHEREAS, the City of Kenai executed a Construction Agreement with Blazy Construction, Inc.
on October 1, 2018 for the Terminal Rehabilitation Project in the amount of $10,985,994; and ,
WHEREAS , council through enactment of Ordinance 3037-2018 authorized the City Manager to
issue a Purchase Order in the amount of $11,485,994 for the Contract amount of $10 ,985 ,994
including $500,000 of contingency funding; and,
WHEREAS, to date the City has executed two change orders totaling $461,585.56 and the
Federal Aviation Administration grant eligible portion of those Change Orders has been
determined to be $408,849.41; and,
WHEREAS, Administration is requesting appropriation of the additional eligible federal share and
an increase to the authorized Purchase Order Amount to Blazy Construction, Inc. of the same
amount, $408,849.41 to replenish project contingency to $447,263.85 and to allow for the
continued processing of future change orders ; and,
WHEREAS, Council will continue to be informed of Change Orders through Public Works Mid-
Month Report.
NOW , THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA,
as follows:
Section 1. The City Manager is authorized to accept grant funding from the Federal Aviation
Administration in the amount of $408,849.41 for the grant eligible portions of Change Orders 1 &
2 to Blazy Construction, Inc.
Section 2. The City Manager is authorized to increase Purchase Order No . 116510 to Blazy
Construction , Inc. by $408,849 .41
Section 3. That the estimated revenues and appropriations be increased as follows:
Terminal Improvement Capital Project Fund:
Increase Estimated Revenues -
FAA Grant
Increase Appropriations :
$408,849.41
Ordinance No. 3060-2019
Page 2 of 2
Construction
$408 .849.41
Section 4. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision , or application.
Section 5. Effective Date: That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect
upon adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of April , 2019.
Approved by Finance : :-t L.-t!
BRIAN GABRIEL SR., MAYOR
Introduced : April 3, 2019
Enacted: April 17, 2019
Effective: April 17, 2019
'Vtffap aJ/t/i Q PaJ'~ e~ aJ/tli Q Fat~ II
210 Fidalgo Ave , Kenai , Alaska 99611 -7794
Telephone: (907) 283-7535 I Fax: (907) 283-3014
www.kenai .city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Scott Curtin -Public Works Director
March 28, 2019
Ordinance No. 3060-2019
The purpose of this memo is to recommend enactment of Ordinance No. 3060-2019 requesting
an increase to the estimated revenue and appropriations in the Terminal Improvements Capital
Project Fund and authorizing an increase to the Construction Purchase Order to Blazy
Construction, Inc.
The Kenai Municipal Airport Terminal Rehabilitation Project has been underway since October 1,
2018 . The Project began with $500,000 in contingency funds for the administration to process
change orders as they arise. To date $461,585.56 of changes have been processed, largely
associated with the removal of asbestos related materials . Of that amount , it has been determined
that $408,849.41 is eligible for reimbursement from the FAA through our grant.
Appropriation of these funds will replenish the projects contingency to $447,263.85 and allow the
Administration to continue to process change orders in the same manner, continuing to keep
Council informed through Departmental Mid-Month reports. Staff and the Administration are in
support of this appropriation; Council's support and approval is respectfully requested.
Thank you for your consideration.