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HomeMy WebLinkAboutOrdinance No. 3078-2019CITY OF KENAI ORDINANCE NO. 3078-2019 Sponsored by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT SPECIAL REVENUE AND AIRPORT IMPROVEMENT CAPITAL PROJECT FUNDS TO PROVIDE SUPPLEMENTAL FUNDING FOR THE 2019 AIRFIELD MARKING, CRACK SEALING, SEAL COATING, AND MINOR PAVEMENT REPAIR PROJECT. WHEREAS, The 2019 Airfield Marking, Crack Sealing, Seal Coating, and Minor Pavement Repair Project was awarded to Northwest Contracting, LLC on June 6, 2019 in the amount of $713,998.50 with a Notice to Proceed issued on July 11, 2019; and, WHEREAS, during the course of completing the work it has become evident two bid items are scheduled to over -run the estimated quantities: rubber / paint removal by hydro -blasting anticipated to exceed by $34,900 and asphalt crack sealing anticipated to exceed by $135,000; and, WHEREAS, the additional $34,900 of paint removal was the result of a Letter of Correction for Markings received from the Federal Aviation Administration during the June 2019 Certification Inspection and the $135,000 increase in asphalt crack sealing may be the result of a combination of the number and depth of cracks increasing after last fall's earthquakes, an inventory based on the previous year's inspection, and the pavement being another year older; and, WHEREAS, the total cost of pending Change Order 1 to Northwest Contracting, LLC is $169,900; and, WHEREAS, total project costs, including Northwest Contracting, LLC Change Order 1, are estimated at $978,040; and, WHEREAS, the Airport has confirmation from the Federal Aviation Administration that additional work incurred over the course of the project will be eligible for 93.75% FAA reimbursement upon completion of the 2019 Airfield Marking, Crack Sealing, Seal Coating, and Minor Pavement Repair Project with the exception of any amount in excess of 115% of the original project amount or $960,411; and, WHEREAS, a condition of the grant states the FAA can issue a letter to the Sponsor increasing the maximum obligation if there is an overrun in the total actual eligible and allowable project costs to cover the amount of the overrun provided it will not exceed the statutory limitation for grant amendments; and, WHEREAS, the maximum obligation increase for primary airports may be increased by not more than 15 percent for development projects, which for this project is estimated to be $125,270, comprised of $117,441 in FAA Grant Funds and $7,829 in required local match; and, Ordinance 3078-2019 Page 2 of 3 WHEREAS, because of the 15% statutory grant amendment limitation and to provide the required local match to the grant amendment, an additional $25,459 is needed from the Airport Special Revenue Fund to make up the remaining required funds to execute Change Order #1. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the City Manager is authorized to accept additional grant funding of $117,441 from the Federal Aviation Administration, and to expend the funds in accordance with grant provisions and conditions. Section 2. That the estimated revenues and appropriations be increased as follows: Airport Special Revenue Fund Increase Estimated Revenues— Appropriation of Fund Balance $25.459 Increase Appropriations - Airfield - Transfer to Other Funds $25.459 Section 3. That the estimated revenues and appropriations be increased as follows: Airport Improvement Capital Project Fund Increase Estimated Revenues: FAA Grants $117,441 Transfer from Other Funds 25,459 Increase Appropriations - 2019 Airfield Marking, Crack Sealing, Seal Coating, and Minor Pavement Repair Project - Construction $142.900 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. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance 3078-2019 Page 3 of 3 Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of August, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: 7CENq/ J j Heinz, CMC, City Clerk 0••'•� N Approved by Finance: ��,,, , -Calk►. 101 New Text Underlined: [DELETED TEXT Introduced: August 21, 2019 Enacted: August 21, 2019 Effective: August 21, 2019 �= = 71111ale wit% a Past, At w1d a f tine 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 1 Fax: (907) 283-3014 the city www.kenai.city V MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin, Public Works Director DATE: August 14, 2019 SUBJECT: Ordinance No. 3078 - 2019 The 2019 Airfield Marking, Crack Sealing, Seal Coating, and Pavement Repair Project was released for formal Invitation to Bid on May 7, 2019. On June 6, 2019 a Construction Contract was awarded to Northwest Contracting, LLC in the amount of $713,998.50. Also taking place in June 2019 was an annual Federal Aviation Administration (FAA) Airport Certification Safety Inspection. Detailed within their report received on July 1, 2019 were some requested modifications to the runway markings. In order to prevent reworking portions of the current project after completion, it is appropriate to address these issues now within the project. The projected total cost impact to the project for these requested modifications is $34,900.00. Additionally, the estimated quantities for crack sealing are insufficient to complete the project as designed. This may be the result of several factors, including the earthquake last November as well as additional wear and tear on the runway, depth and size of cracks, etc., over the last year. It is projected another $135,000 in crack seal will be necessary to complete the current scope of the project. The total cost of Change Order 1 to Northwest Contracting, LLC is $169,900.00 for a total construction contract cost of $883,898.50. The additional costs, with Council's approval, will be covered by $117,441.00 in FAA eligible funding, $25,459.00 in a new appropriation from the Airport Special Revenue Fund, and $27,000.00 in funds currently remaining in the project as Admin. The Public Works Director, Airport Manager and the Administration all agree this work is in the best interest of the City. Council's approval is respectfully requested.