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HomeMy WebLinkAboutOrdinance No. 3176-2020 SubstituteKENAI Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3176-2020 (SUBSTITUTE) AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT SPECIAL REVENUE AND THE AIRPORT SNOW REMOVAL EQUIPMENT CAPITAL PROJECT FUNDS TO PROVIDE SUPPLEMENTAL FUNDING FOR THE PROJECT, AND AUTHORIZING A PURCHASE AGREEMENT FOR THE PURCHASE OF A REPLACEMENT WIDE -AREA TRACTOR & MOWER. WHEREAS, on November 20, 2020 a formal invitation to bid was released for the purchase of a replacement tractor & mower for the Airport with bids due on December 8, 2020; and, WHEREAS, the following Bids were received: Contractor Bid Craig Taylor Equipment $159,997.00 Yukon Equipment $185,869.29 and, WHEREAS, funding for this project is included in the FY21 Budget and was Project Priority No. 5 within the current Capital Improvement Plan for the Airport Fund; and, WHEREAS, staff negotiated removal of items from the proposed tractor provided by Craig Taylor Equipment that were in excess of requested requirements that resulted in a $8,261 reduction in Bid Cost bringing the tractor closer to budget requirements with a new total cost of $151,736; and, WHEREAS, current funding for this project totals $131,000 and an additional $20,736 will need to be appropriated to complete the purchase; and, WHEREAS, the original estimate for this purchase was inaccurate and was based on a model of tractor that is no longer available today as well as the clarification in some required components that were not detailed and included within the original estimate; and, WHEREAS, this tractor and mower is essential equipment to airfield maintenance operations; and, WHEREAS, sufficient funds are available within Airport Special Revenue Fund to complete the purchase; and, WHEREAS, the Administration agrees that this purchase is appropriate and in the best interest of the City. Substitute Ordinance No. 3176-2020 Page 2 of 2 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. The City Manager is authorized to execute a Purchase Agreement and issue a Purchase Order in the same amount of $151,736 to Craig Taylor Equipment for the purchase of a replacement tractor and mower. Section 2. That the estimated revenues and appropriations be increased as follows: Airport Special Revenue Fund: Increase Estimated Revenues — Appropriation of Fund Balance $20.736 Increase Appropriations — Transfer to Airport Improvement Capital Project Fund $20.736 Airport Snow Removal Capital Project Fund: Increase Estimated Revenues — Transfer from Airport Special Revenue Fund $20.736 Increase Appropriations: Machinery & Equipment $20.736 Section 3. 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 4. 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 6th day of January, 2021. ATTEST: Heinz, CMC, City Clerk Approved by Finance: of: KEA.. 4 l Introduced: December 16, 2020 Enacted: January 6, 2021 Effective: January 6, 2021 KENAI City of Kenai 1 210 Fidalgo Ave. Kenai, AK 99611-7794 1907.283.7535 1 www.kenai.city MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin DATE: December 23, 2020 SUBJECT: SUBSTITUTE Ordinance 3176-2020 — Purchase Agreement for the Purchase of a Replacement Wide -Area Tractor and Mower Staff, in coordination with Craig Taylor Equipment, were successful in negotiating the reduction in a few items to reduce the budget deficit on this purchase. The front axle was reduced down to a more basic model selection which removed independent brakes and suspension and an upgraded LED light package included in the proposal was removed. Front fenders and a tool box were also removed, combined they result in a $7,279 total cost savings to the proposed purchase. These reductions will not hinder the intended performance of the equipment and the Airport Operators are in support of the changes. Council's support is respectfully requested.