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Home My WebLink AboutORDINANCE 1102-1985J - '-w 5:iggexted by: Administration CITY OF KENAI ORDINANCE NO. 1102-85 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE 1985-86 AIRPORT LANIJ SYSTEM BUDGET BY $22,079 TO REPAY THE FEDERAL AVIATION A!/MINISTRATION AND THE STATE OF ALASKA FOR PRIOR GRANT REIMBURSEMENTS. WHEREAS, the FAA has determined that the City of Kenai claimed $22,791.20 as grant eligible costs for new fencing and for fence restoration and that these cost% were not eligible for reimbursement because the City exceeded the scope of the grant; and, WHEREAS, the FAA and the State of Alaska participated in these costs at rates of 93.75% and 3.125% respectively; and., WHEREAS, the FAA has asked for repayment by the City, and the City expects the State of Alaska to also ask for repayment. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following increase in estimated revenues and appropriations be made: Airport Land System Increase Estimated Revenues: Appropriations of Fund Balance $22,079 Increase Appropriations: Airport Maintenance and Operations - Miscellaneous $22,079 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of December, 1985. TOM WAGONER, MAYOR ATTEST: Ja t Whelan, City Clerk First Reading: December 4, 1985 Second Reading: December 18, 1965 Effective Date: December 18, 1985 Approved by Finance: c.'-,�J 11/26/85 MEMO T0: William J. Brighton, City Manager FROM: Charles A. Brown, Finance Director P ti DATE: November 26, 1985 SUBJECT: FAA request for repayment on Fencing and Equipment grant #6-02-0142-08 In 1981, the City received a grant from the FAA for fencing and equipment at the Kenai Airport. With regard to the fencing portion, the project was $50,000 for installation of 3,200 feet of new fence, and $70,000 for ra:construction of 5,600 feet of existing fence. For those amounts of money, the City was able to install and reconstruct more fence than the designated footage allowed in the grant. The FAA notified the City in December, 1982 and in February, 1983 than the footage in excess of the limits set out in the grant would not be eligible. They were very specific about this. In the September, 1992 letter, they went on to inform the City that we could amend the grant to increase the footage. This amendment would have to have been done prior to construction. The City apparently did not ask for a grant amendment. The FAA is asking for repayment of $21,366.75 (93.75% of $22,791.20). I have notified the State of Alaska about this and have asked if they will demand a refund of $712.23 0.125% of $22,791.20). At this point, I hardly think it's worthwhile to debate this issue with the FAA. The City has erred, and I can think of few defenses to present to .the FAA. The best we can do now is to try to prevent this from happening again. The problem here seems to be that the City does not have a single individual responsible for a particular grant. This is especially true with Airport grants. In this case, the grant application was prepared by the Airport Manager (with help, I believe, from the Public Works Dept.). The Public Works Dept. supervised the work. The Finance Dept. filed grant reimbursement requests. Note that the November, 1982 letter from FAA was written to the Airport Manager, but the February, 1983 letter was written to the City Engineer. The Finance Dept. became aware of these letters on Movember 14, 1985 (by the FAA). All three departments either had the opportunity, or could have had the opportunity, to prevent this from happening if we would have worked together r%ther than independently. In the future, perhaps we should name one individual to maintain a file of correspondence regarding the grant. -1 A -W t USDeportn wv of TrarlSpwotlon FedwW A kdlon AdmWdiftaHm November 21, 1985 Alaskan Region 701 C Street, Box 14 Anchorage. Alaska 99513 Mr. Charles A. Brown Finance Director City of Kenai 210 Fidalgo Kenai, Alaska 996,11 Dear Mr. Brown: During our review of the city's final reimbursement request and the Federal Aviation Administration's (FAA) project files, for Airport Development Aid Program Project No. 6-02-0142-08, we came across ineligible construction costs totaling $22,791.20 ($120,000.00 - $97,208.80). We believe Lae miscalculation can be traced to the following items. The city has claimed cost amounting to $120,000.00 for the construotion of the security fence. The construction project exceeds the scope of the gra.-at agreement work description. A letter was sent to the sponsor, dated February 7, 1983, which listed the eligible quantities for these work items. The eligible costs, per the approved bid price, are as follows: Hiigibte Bid :or Federal Unit Partioination Qat Total Cost 1. New Fence 3,200 L.F. 13.50 $43,200.00 2. Double Drive Cate 13 ea. W 9.00 * 6,097.00 3. Walk Cates 8 ea. $171.00 $ 1,368.00 4. Restore Existing Fence 5,600 L.P. = 8.45 $47,320.00 5. Clearing 6 Grading 790 L.F. s) .90 $ 711.00 6. Restricted Signs 2 ea. = 26.40 A 52.80 TOTAL $98,748.80 Change Order No. 3 (61,540,00) $97,208.80 A grant amendment to increase the amount of eligible work on the fencing portion of the grant can not, at this time, be approved. An amendment of this nature would have to have been submitted and approved at the beginning of the project, before actual construction work began on that portion of the fencing which exceeds the amount Adentified in the apporved grant agreement. i r- 2 To our knowledge copies of all pertinent correspondence are attached for your review, including a copy of your final claim, for reference purposes. Once you have had an opportunity to review the enclosed materials we will need to discuss the final claim and the best method and timing for reimbursing the FAA $21,366.75, the federal share of $22,791.20. If you have any questions or need additional information please feel free to contact Mr. Dave Johnson at 271-5443. Sincerely/, 9 ZWO-IOW7 Floyd H. Pattison !tanager, Planning 6 Programing )Branch Airports Division Enclosure t �t 1� usa:portment of TransMiotlon Federal Aviation Administrotlon September 22, 1982 Mr. Jim Swalley Airport Manager City of Kenai P.O. Box 580 Kenai, Alaska 99611 Dear Mr. Swal l ey: Ala ;� an Reginn Kenai Municipal Airport Security Fencing ADAP Project No. 6-02-0143-08 701 C Street, Box 14 Ancti-nrage, Alaska 99513 We have reviewed the preliminary plans and specifications for installation, restoration, and relocation of security fencing at the Kenai Municipal Airport which were transmitted with your letter of September 1, 1982 There are several omissions in your MBE/FMBE "boiler plate" specifications. We are returning your specifications with the necessary changes. We have also included a set of State of Alaska, Department of Transportation and Public Facilities, specifications which you may wish to use as a guide. A Federal Aviation Administration (FAA) publication entitled "minority Business Enterprise Program Development U for Airport Grant -in -Aid Recipients" is also enclosed for your use. Your letter of September 1 to Mr. Strickland requests our concurrence s,,,1�"% �o use the $37,500 received from the sale of a shop building for the construction of a fence in the fixed base operator (FBO) area. Our letter to your office dated August 26, 1979 outlines the conditions for or�, �1 .�feinvesting the money. Basically, the letter states that the money most rY be reinvested within a 5-year period for specified items of airport.develo im-""4ment (such as eligible items of airport development set forth in FAR i Part 152). The money cannot be used as the sponsor's share for Federal funding under the ADAP program. The money may be used for fence construc- tion in the FBO area or any additional segment of fence construction shown on the preliminary plans and sepcifications submitted to us. The lineal feet of proposed new fence construction and the restoration of existing fence do not agree with the grant work description. There appears to be enough money in the grant to construct more fence than t Tescr on allows.- _You_.may wish to amend the grant descrietion_ include the additive alternates. This could be done after the bid ope Sincerely, Kenneth R. Moore FAA Form 1360.14 (7-67) OFFMApc ag,o5afety R Standards Branch 3 Enclosures s Division AAL-620:Rt•'Griffith:eh:9%2.%gz X R February 7, 1983 Mr. Jack La Snot Kenai Municipal Airport P.O. Box 580 4enai, Alaska 99611 Bear Mr. La Shot: Kenai Municipal Airport ADAP 6-02-0142-08 The final plans and specifications for the subject project have been reviewed and are approved. The fencing as shoran on the plans exceeds the lengths of fencing in the grant description by a considerable amount. The grant description reads as follows: "Install 3,200 L.F. and reconstruct 5,600 L.F. security fence:...." We have listed below the pay hears that we consider are eligible for federal participation Eligible Bi�Quantik Feder1l 1. Furnish 3 Install New Fence 4,150 L.F. 3,200 L.F. 2. Furnish & Install Double Drive Gates 17 ea. 13 ea. 3. Furnish b Install Walk Gates */signs 12 ea. 8 ea. 6. Restore Existing Fence 6,265 L.F. 5,600 L.F. 7. Clearing E Gradifig 1,650 L.F. 790 L.F. S. Furnish b Install Extra Airport Restricted Signs 3 ea. 2 ea. Enclosed is one signed and approved set of plans and specifications.for your file. You may advertise this project at your convenience. Sincerely, Kenneth R. Hoore, P.E. Manager, Safety b Standards Branch FA Fa. 1360.14 (7-67) oMCKrMgQd4ion �nC�OSUre AAL-620:RGriffith:5454:hb:2/7/83