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HomeMy WebLinkAboutOrdinance No. 3111-2020S po nso red by : Adm inist ration CITY OF KENAI ORDINANCE NO. 3 1 11 -2020 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE TERMIN AL 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 fund ing ; and, WHEREAS , Cou ncil, through enactment of Ordinances 3060-2019, 3080-2019 and 3097-2019 increased estimated revenues and appropriations by $868, 181.49 to provide for continued project contingency funds and increased the purchase order amount to $12 ,354 , 175.49; and, WHEREAS, to date the City has executed eight change orders totaling $1, 143,503.59; and , WHEREAS, the Federal Aviation Administration grant eligible portion of those Change Orders 1- 8 has been determined to be $1 ,012,858.30 with the City of Kena i's share as $130,645.29; and , WHEREAS , Administration is requesting appropriation of the additional eligible federal share and an increase to the authorized Purchase Order Amount to Blazy Construction, In c . of the same amount, $144,676 .81 to replenish project c ontingency 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 $12,498,852 .30, the authorized contract to Blazy Construction, Inc. will be $12 , 129,4 97 .59, with available contingency to complete the project of $369,354. 71 ; and, WHEREAS , Counc il will continue to be informed of Change Orders through Public W orks M id- Month Report . NOW , THEREFORE , BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows : Section 1. T he City Manager is authori zed t o acc e pt g rant funding from the Fede ral Aviation Administration in the amount of $144,676.81 for th e grant eli g ible portions of Change O rders 7 & 8 to Blazy Const r uction , Inc. Ordinance No . 3111-2020 Page 2 of 2 Section 2. The C ity Manager is authorized to increase Purchase Order No . 116510 to Blazy Construction, Inc. by $144 ,676.81 . 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 $144.676.81 $144.676 .81 Section 4. Severabilitv: That if any part or provision of this ordinance or applicat ion 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 18th day of March, 2020. ATTEST : Approved by Finance: ~ BRIAN GABRIEL SR., MAYOR Introduced: March 4 , 2020 Enacted : March 18, 2020 Effective: March 18, 2020 'llttf~ tt1/t~ a PaJ't, e~ tt1/t~ a f"u.tfl.l"e" 210 Fidalgo Ave , Kenai , Alaska 99611 -7794 Te lepho ne : (907) 283-7535 1 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 February 25 , 2020 Ordinance No. 3111-2020 The purpose of this memo is to recommend passage of Ordinance No. 3111-2020 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 is nearing completion. The Project began with $500,000 in contingency funds for the administration to process change orders as they arise. To date $1 , 143 ,503 .59 of changes have been processed. Of that amount it has been determined that $1,012,858.30 are eligible for reimbursement from the FAA through our grant. With approval of this Ord inance $369,354 .71 of contingency shall remain . Appropriation of these funds will 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.