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HomeMy WebLinkAboutOrdinance No. 3097-2019Sponsored by: Administration CITY OF K ENAI ORDI NANCE NO. 3097-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE TERM INAL 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 Orde r 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 enact ment of Ordinances 3060-2019 and 3080 -2019 increased estimated revenues and appropriations by $734,232 .51 to provide for continued project contingency funds and increased the purchase order amount to $12 ,220,226 .51 ; and, WHEREAS, to date the City has executed six change orders totaling $980 , 165.39 ; an d, WHEREAS, the Federal Aviation Administration grant eligible portion of those Change Orders 1- 6 has been determined to be $868, 181.49 with the City of Kenai 's share as $111 ,983 .90; 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, $133,948.98 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 $12,354, 175.49, the au t horized contract to Blazy Construction , Inc. will be $11 ,966 , 159 .39 , with available contingency to complete the project of $388 ,016 .10 ; 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 $133 ,948.98 for the grant eligible portions of Change Order 6 to Blazy Construction , Inc. Ordinance No . 3097-2019 Page 2 of 2 Section 2. The City Manager is authorized to increase Purchase Order No. 116510 to Blazy Construction, Inc. by $133 ,948 .98. Section 3. That the estimated revenues and appropriations be increased as follows: Terminal Improvement Capital Project Fund: Increase Estimated Revenues - FAA Grant Increase Appropriations : Construction $133 .948.98 $133.948,98 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 4th day of December, 2019 . ATTEST: ffRIAN GABRIEL SR., MAYOR Introduced : November 6, 2019 Enacted : December 4, 2019 Effective: December 4, 2019 'V/fl~ U1/t~ a PaJ'~ tt'tj U1/t~ a Fu.t~e" 210 F idalgo 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 October 30, 2019 Ordinance No. 3097-2019 -Authorizing increases to the Terminal Rehabilitation Project The Kenai Municipal Airport Terminal Rehabilitation Project has been underway since October 1, 2018. The current completion date has been adjusted slightly to February 20 , 2020 through execution of Change Order 6 which added 18 Calendar days as the result of labor and material delays resulting from highway closures from the Swan Lake Fire. 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 3060-20 19 appropriating the Federal share of C0#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 , 2 019 Ordinance 3080-20 19 appropriating the Federal share of C0#3-5 August 21, 2019 -$325,383.10 Change Order #5 -$96, 126.03 executed on September 3, 2019 Change Order#6-$151,226.63 executed on October 21, 2019 Ordinance No. 3097-2019 The Original Contract to Blazy Construction, Inc. was $10,985,994.00 Total Change Orders to date C0#1-6 -$980, 165.39 Total Contract to date shall be $11,966 ,159.39 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. Council 's approval is respectfully requested .