HomeMy WebLinkAboutOrdinance No. 3080-2019CITY OF KENAI
ORDINANCE NO. 3080-2019
Sponsored by: Administration
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, Council, through enactment of Ordinance 3060-2019 increased estimated revenues
and appropriations by $408,849.41 to provide for continued project contingency funds and
increased the purchase order amount to $11,894,843.41; and,
WHEREAS, to date the City has executed four change orders totaling $732,812.73 and Change
Order five is within this packet for approval and totals $96,126.03 for a combined total Change
Orders to date cost of $828,938.76; and,
WHEREAS, the Federal Aviation Administration grant eligible portion of those Change Orders 1-
5 has been determined to be $734,232.51 with the City of Kenai's share as $94,706.25; 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, $325,383.10 to replenish project contingency and to allow for the continued processing
of future change orders; and,
WHEREAS, once complete, the authorized purchase order amount to Blazy Construction, Inc.
will be $12,220,226.51, the authorized contract to Blazy Construction, Inc. will be $11,814,932.76,
with available contingency to complete the project of $405,293.75; 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 $325,383.10 for the grant eligible portions of Change Orders 3-5
to Blazy Construction, Inc.
Ordinance No. 3080-2019
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Section 2. The City Manager is authorized to increase Purchase Order No. 116510 to Blazy
Construction, Inc. by $325,383.10.
Section 3. That the estimated revenues and appropriations be increased as follows:
Terminal Improvement Capital Project Fund:
Increase Estimated Revenues—
FAA Grant $325.383.10
Increase Appropriations:
Construction
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 1.15.070(f), this ordinance shall take effect
upon adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 4'" day of September,
2019.
ATTEST:
Heinz, CMC, City Clerk
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Approved by Finance:
Introduced: August 21, 2019
Enacted: September 4, 2019
Effective: September 4, 2019
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210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 ( Fax: (907) 283-3014
the city of www. kenai.city
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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. 3080-2019
The Kenai Municipal Airport Terminal Rehabilitation Project has been underway since October 1,
2018. The current completion date remains at February 2020.
The Project was awarded with $500,000.00 in contingency funds to allow for the prompt
processing of change orders during construction to minimize potential cost impacts related to time
delays. The Public Works Director in coordination with the City Manager have been reviewing
and processing change requests as they are received, and notifying council through Departmental
Mid -month reports throughout the project.
To summarize:
Change Order #1 - $188,955.55 executed on January 31, 2019
Change Order #2 - $272,630.01 executed on March 4, 2019
Ordinance 3060-2019 appropriating the Federal share of CO#1-2 April 3, 2019- $408,849.41
Change Order #3 - $203,602.75 executed on April 26, 2019
Change Order #4 - $67,624.42 executed on May 29, 2019
Change Order #5 - $96,126.03 pending execution
Ordinance 3080-2019 appropriating the Federal share of CO#3-5 August 21, 2019 - $325,383.10
The Original Contract to Blazy Construction, Inc. was $10,985,994.00
Total Change Orders to date CO#1-5 - $828,938.76
Total Contract to date shall be $11,814,932.76
L
Ordinance 3080 - 2019
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Passage of this Ordinance will replenish the contingency and allow for the continued processing
of future change orders. Council will continue to be informed of change orders through Public
Works Mid -Month reports.
As a reminder to Council, the extent of the Asbestos Abatement is the largest contributing factor
to the additional costs, accounting for $546,896.40 of all change orders to date. Additionally,
neither Ordinance 3060-2019, nor this Ordinance, increase the total amount of City funds
appropriated for this project. Administration is anticipating that after closeout of this project some
of the funds appropriated by Ordinance 3037-2018 will lapse back to the City's Airport Special
Revenue Fund.
Council's approval is respectfully requested