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HomeMy WebLinkAboutOrdinance No. 3188-2021KENAI CITY OF KENAI ORDINANCE NO. 3188-2021 Sponsored by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE WATER AND SEWER SPECIAL REVENUE AND WASTEWATER TREATMENT PLANT IMPROVEMENTS CAPITAL PROJECT FUNDS FOR A REPLACEMENT SLUDGE PRESS. WHEREAS, HDL Engineering Consultants successfully concluded our RFP process in the spring of 2020, and quickly began work on assessing the City's Waste Water Treatment Facility; and, WHEREAS, the two highest priority items identified within HDL's assessment was the replacement of the existing Wasting Activated Sludge (WAS) Pumps, which is nearing completion now, and the replacement of the 40 year old sludge press; and, WHEREAS, prior to getting HDL Engineering Consultants under contract, $500,000 was included in the FY2020 budget toward this project; and, WHEREAS, after development of the project concepts and gaining a greater understanding of additional appropriate efforts that should take place during this work, items like control panel replacement, and polymer injection equipment replacement, the intent of this ordinance is to appropriate additional funds to allow the project to continue forward; and, WHEREAS, the current anticipated budget for this work is now $1,200,000 based on current estimates; and, WHEREAS, to date the current design agreement with HDL for this work totals $169,125 and was approved under Resolution 2020-95; and, WHEREAS, staff in coordination with the engineers intend to issue and evaluate through the Request for Proposal (RFP) process equipment offerings from various manufacturers and upon evaluation issue a contract award to the supplier offering the greatest value to the City on a new sludge press and associated equipment; and WHEREAS, this procurement will allow the six month production time for the new equipment to take place while final design documents are being completed on the actual equipment to be installed; and WHEREAS, this will save the City on contractor markup on roughly $450K worth of equipment while allowing the equipment to arrive in Alaska faster as well as minimize exposure on change orders as the design documents will reflect the specific equipment being installed and not a generalization towards multiple potential manufacturers; and WHEREAS, enactment of this Ordinance is in the City's best interest. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the estimated revenues and appropriations be increased as follows: Water and Sewer Special Revenue Fund: Increase Estimated Revenues - $Z994 Increase Appropriations: Transfer to Wastewater Treatment Plant Improvement Capital Project Fund $700.000 Section 2. That the estimated revenues and appropriations be increased as follows: Wastewater Treatment Plant Improvement Capital Project Fund: Increase Estimated Revenues - Transfer from Water & Sewer Fund $700.000 Increase Appropriations: Construction 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 171 day of February, 2021. '-ZV BRIAN GABRIEL SR., MAYOR ATTEST: OF..KN;N»q! Heinz, CMC, City Cle" rw Approved by Finance: Introduced: February 3, 2021 Enacted: February 17, 2021 Effective: February 17, 2021 KENAI City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 I www•kenai.city MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin, Public Works Director DATE: January 26, 2021 SUBJECT: Ordinance No. 3188-2021 Council approved Resolution 2020-95 at the December 16, 2020 Council meeting which authorized a professional services agreement to HDL Engineering to provide bid ready construction documents for a replacement sludge press at the City's Waste Water Facility. This agreement, in the amount of $169,125, was paid for from the $500,000 in funding provided during the FY20 Budget. HDL Engineering, in coordination with City staff and their sub - consultants, have determined the production lead times on this equipment is extensive, estimated to be approximately six months from date of order to delivery. As such the team is working on documents to select a new sludge press during a competitive RFP process where the City will select and purchase a new sludge press and associated components directly from the manufacturers / distributor as the case may be. This is slightly different than a normal design, bid, build type of procurement process. This ordinance is being introduced now, to ensure sufficient funds are available to award the purchase of this equipment by the City and also to inform Council of what the likely overall magnitude of the project is anticipated to be. Finance requires sufficient funds are available prior to the release of solicitations. This ordinance is to meet that requirement. Current project estimate has the design phase at $169,125, equipment purchases approximately $480,000, and the remainder of roughly $550,000 for construction, construction administration and City administration. At the completion of the design phase a more detailed cost estimate will be provided by the design team and if needed, may result in coming back to Council to confirm any changes to assumed project costs prior to going out for construction contractor bids. This project is the highest priority item at the Waste Water Facility to be completed next. Replacement will allow staff to continue to meet Federal and State regulated requirements. The administration is in support of the project. Council's support is respectfully requested I� k L_ 1 Example of new screw press I� 17 Existing 40 year old belt press Page 2 of 2 The City of Kenai I wwwlenai.city