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HomeMy WebLinkAboutOrdinance No. 3151-2020x Sponsored by: Administration K~NAI CITY OF KENAI ORDINANCE NO. 3151-2020 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 Ordinances 3060-2019, 3080-2019, 3097-2019 and 3111-2020 increased estimated revenues and appropriations by $1,012 ,858.30 to provide for continued project contingency funds and increased the purchase order amount to $12,498,852.30; and, WHEREAS, to date the City has executed nine change orders totaling $1,195,962.41; and, WHEREAS, a pending Change Order #10 in the amount of $365,950.36 would be funded through this Ordinance, and bring the total Change Orders to date to $1,561,912. 77; and, WHEREAS, within Change Orders 1-10, $82,782.43 has been determined to be ineligible for FAA reimbursement; and WHEREAS, the Federal Aviation Administration grant el igible portion of Change Orders 1-10 has been determined to be $1,479,130.34 with the FAA share as $1,310 ,065 .74 and the City of Kenai 's share as $169,064.60; and, WHEREAS, the total of all Change Orders to date of $1,561,912 .77 will be funded by $1,310,065.74 from the FAA and $251,847.03 from the City of Kenai; 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. With the intention that this is the final change order and no additional contingency will be needed; and, WHEREAS, once complete, the authorized purchase order and contract amount to Blazy Construction, Inc. will be $12,547,906.77. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: O rdinance No. 3 15 1-2020 Page 2 of 2 Section 1. The City Manager is authorized to accept grant funding from the Federal Aviation Administration in the amount of $297,207.44 for the grant eligible portions of Change Orders 9 & 10 to Blazy Construction , Inc. Section 2. The City Manager is authorized to increase Purchase Order No . 116510 to Blazy Construction, Inc. by $49,054.47. 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 $2 97.2 07.44 $297.207.44 Sect ion 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 w ithout such part, provision , or application. Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 19th day of August, 2020. ATTEST: Approved by Finance: / L_ Introduced : August 5, 2020 Enacted : August 19, 2020 Effective: August 19, 2020 City of Kenai I 210 l=id algo A ve, Kenai, AK 9961 1-77941907.283.7535 I www.kena i.city MEMORANDUM T O: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Scott Curtin, Public Works Director July 30, 2020 Ordinance No. 3151-2020 The Kenai Municipal Airport Terminal Rehabilitation Project is finally nearing its completion . The project reached Substantial Completion on March 27, 2020 and was completed under budget. For the last four months staff, the design team, and contractor have been coordinating to complete additional items that were not in the original scope of work for the project. Items like replacement of the facilities existing main boilers, and terminal wide furnishings. Both of which were left out of the original scope due to budget concerns. The Federal Aviation Administration is allowing the additional items to be completed under the same grant conditions as the original work, being able to complete these items now is a great cost advantage to the City. To summarize the project our Original Contract with Blazy Construction was for $10 ,985 ,994. Throughout the course of the almost two year project we have processed ten change orders totaling $1,561,912.77 which equates to an approximately 14.2% increase. Change Order costs associated with asbestos abatement total $551,235 .54, approximately 35 .3% of all change order costs. The costs associated with the replacement boilers and terminal furniture total $323,548 .26, approximately 20.7% of all change order costs. The remaining $687, 128.97, appro ximately 44% of all change orders were largely directed to correcting other unforeseen conditions. Bringing discovered issues up to code, as well as coordinating to keep the various businesses operational during the multiple phases of the project. All in all this project was very successful for the City. I would like to express our appreciation to Wince Corthell Bryson the Design Engineer and their entire team as well as Blazy Construction and all of their subcontractors , without their efforts we would not have the terminal we have today. Council's support of this Ordinance is respectfully requested .