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HomeMy WebLinkAboutOrdinance No. 3155-2020 Substitute~ Sponsored by: Administration K~NAI CITY OF KENAI ORDINANCE NO. 3155-2020 (SUBSTITUTE) 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, AUTHORIZING AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH HDL ENGINEERING FOR CONSTRUCTION ADMINISTRATION SERVICES, AND AWARDING A CONTRACT FOR THE 2020 KENAI MUNICIPAL AIRPORT SAND STORAGE FACILITY PROJECT. WHEREAS, on August 10, 2020 a formal Invitation to bid was released in coordination with the Federal Aviation Administration for the construction of a new 5600sf combined Sand Storage and Snow Removal Equipment (SRE) Building for the Kenai Municipal Airport, with bids due on August 31, 2020; and, WHEREAS, the City received the following bids with Orion Construction, Inc determined to be the lowest responsive and responsible bidder; and, Contractor Base Bid Add Alt #1 Total Bid Orion Construction Inc $2,237,000 $52,000 $2,289,000 Watterson Construction Co $2,307,000 $35,000 $2,342,000 Polar North Construction LLC $2,418,933 $62,300 $2,481 ,233 Jav-Brant General Contractors LLC $2,488,333 $45 ,034 $2,533,367 WHEREAS, on August 28, 2020 HDL Engineering provided a proposal to provide Construction Administration Services totaling $190,332 and the current agreement to date for Design Services through bid phase totals $265,681 making the total professional services agreement for the project through completion $456,013; and, WHEREAS , on September 2 , 2020 a grant request was submitted by Administration to the Federal Aviation Administration (FAA) requesting a total grant project cost of $2,835 ,263 which includes all costs associated with design, construction, administration, and permitting; and, WHEREAS , on September 16, 2020 Council approved Resolution 2020-79 Authorizing the City Manager to accept pending grant funds from the Federal Aviation Administration (FAA); and, WHEREAS , on September 24 , 2020 a formal grant offer from the Federal Aviation Administration (FAA) was received in the amount $1 ,954, 101 , and was returned executed by Administration on September 25, 2020 as requested by the Federal Aviation Administration (FAA); and, WHEREAS , these funds are available for the project, with CARES Act funds dedicated to the airport included to cover the normal City share of 6.25% of the current grant offer and the remaining project costs of $2,835,263 -$1,954,101 total $881,162 will be funded by airport Substitute Ordin a nce No. 3155-2020 Page 2 of 3 entitlements available next spring under the Federal Aviation Administration's next fiscal budget starting October 1, 2020; and, WHEREAS , it is anticipated that the remaining required funds will be split under the typical apportionment of Federal share of 93.75% and the City share of 6 .25%, which results in $826,089 for the remaining Federal share and $55,073 for the remaining City share; and , WHEREAS , the total project cost share will then be $2, 780, 190 Federal Aviation Administration (FAA) share, and $55,073 City share on a total current project cost of $2,835,263; and, WHEREAS , the Administration is requesting Council approval to appropriate funds from the Airport Special Revenue Fund to allow for the full contract award plus 5% contingency to allow for the processing of any change orders that may arise , with the City able to reimburse these funds as the remaining grant funds become available from the Federal Aviation Administration (FAA) in Spring 2021; and, WHEREAS, Ordinance 3116-2020 adopted on April 15, 2020 previously appropriated $265,681 for project design services which are now reimbursable by the awarded grant reducing the additional funding need from the Airport Special Revenue Fund at this time to $729,931; and, WHEREAS , the Administration will bring forth to Council in spring 2021 a separate additional ordinance to appropriate the remaining grant dollars once they are finalized; and, WHEREAS, funding the project in this way shall allow the project to proceed with submittals and ordering of materials through the winter months and to take advantage of the summer season for construction resulting in cost and time savings to the City; and, WHEREAS, the Federal Aviation Administration (FAA) and City staff are in agreement that this path is the most beneficial to the City . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. The City Manager is authorized to award a construction contract to Orion Construction Inc. in the amount of $2 ,289,000 and issue a purchase order to Orion Construction Inc. in the amount of $2,403,450 which includes 5% contingency for the processing of change orders. Section 2 . The City Manager is authorized to amend HDL Engineering's Design Agreement to include construction administrative (CA) services in the amount of $190,332 . Section 3. That the estimated revenues and appropriations be increased as follows : Airport Special Revenue Fund : Increase Estimated Revenues - Appropriation of Fund Balance Increase Appropriations - Transfer to Airport Improvement Capital Project Fund $729,931 $729.931 Substitu t e Ordinance No. 3155-2020 Pag e 2 of 3 Airport Improvement Capital Project Fund : Increase Estimated Revenues - FAA Grant Transfer from Airport Special Revenue Fund Total Increase Appropriations: Construction $1 ,954 , 101 729,931 $2,684.032 $2,684.032 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 7th day of October, 2020, BRIAN GABRIEL SR., MAYOR ATIEST: ~ Introduced: August 19, 2020 ~. Enacted: October 7, 2020 1 l ) • Effective: October 7, 2020 Cily of Kena i I 210 l=id algo Ave, Kenai , AK 99611 -77941 907.283.75 35 I www.kenai.cily MEMORANDUM TO : THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Scott Curtin, Public Works Director August 11 , 2020 Ordinance 3155-2020 The purpose of this memo is to request support for the Kenai Municipal Airport Sand Storage Building. Staff, in coordination with the Federal Aviation Administration (FAA), has been developing the project. HDL Engineering completed design documents on August 7, 2020. The project was formally released for Bids on August 10, 2020 with bids due on August 31, 2020 . The project will be developed in two phases to allow the City the greatest opportunity to take advantage of federal grants . Phase 1 is anticipated to take place this fall and will cover Site Civil work. The grant will cover all of the FAAs normal share, and CARES Act funds are anticipated to cover the City's normal share of 6.25%. Phase 2 will begin early 2021, and will be awarded under a separate future Ordinance. It will be funded by the Airport's annual entitlements and possibly d iscretionary funds through the FAA and is anticipated for the City to short term finance the work until the grant can be issued likely in May 2021 . The structural steel and insulated wall and roof panels will need to be ordered in March 2021 to make sure they arrive in Alaska in time for the summer construction season. Phase 2 will likely require the usual grant matching funds, with the FAA contributing 93 .75% and the City share being 6.25% of construction costs however, if there are remaining CARES Act funds, there would be no match requirement of the City. The funds to cover the start of Phase 2 shall be taken from the Airport Special Revenue Fund and will be reimbursed upon receipt of grant. This project is the number one priority for the Airport from the Capital Improvement Plan . Completion of the facility will allow the airport to store all of their required sand for the runway under roof in a conditioned space, which will allow their sanding operations to proceed more efficiently, reducing wear and tear on equipment from breaking into frozen sand piles that would otherwise be stored outdoors . Council should anticipate an amendment memo being provided prior to the September 2, 2020 council meeting to fill in the blanks associated with the current Ordinance. Council 's support of this Ordinance is respectfully requested . Cily of Kenai I 210 l=id algo Ave, Ke nai. AK 99611-7794 1907.283.753 5 I www.kenai.c i!y MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kena i City Council Paul Ostrander, City Manager Scott Curtin, Public Works Director September 29, 2020 Substitute Ordinance 3155-2020 The purpose of this memo is to update Council on the status of the Kenai Municipal Airport (KMA) Sand Storage Facility Project. Staff has worked in close coordination with the Federal Aviation Administration (FAA), and the City has received and executed Grant ENA-ALG-3-02-0142-064- 2020 in the amount of $1,954, 101 for Construction of the facility. Resolution 2020-79 approved at the September 16, 2020 Council Meeting, authorized the City Manager to e xecute a grant upon receipt from the FAA. The Administration received the formal grant offer on September 24, 2020 and returned the executed grant offer back to the FAA on September 25, 2020. To summarize the project to date, the City funded the design at $265,681 which is now reimbursable under this grant. On August 31 , 2020 formal construction bids were received with Orion Construction being the successful low bidder with a total bid of $2,289,000. HDL Engineering on August 28, 2020 provided a proposal for construction administration services totaling $190,332 which includes required third party special inspections. On September 2 , 2020 a formal grant application was completed by the Administration and submitted to the FAA requesting a total project cost of $2,835,263 which included additional costs for City Admin, Permitting, and Utilities. Our counterparts at the FAA gathered remaining available funding for their fiscal year end of September 30 and provided the City with a grant of about $1 ,000,000 more than we were anticipating . The balance of the cost difference between the total project costs and the grant just received is anticipated to be funded by the FAA under a second grant in their new fiscal year, and will likely be available sometime in May 2021. Administration is requesting through this ordinance to fund the project with the Airport Special Revenue Fund until the second grant becomes available at which time the fund will be reimbursed for a majority of the costs minus the normal City share as detailed within the Ordinance . With Council 's approval construction is ex pected to start in October 2020 and continue through October 2021 . Council's support of this ordinance is respectfully requested.