HomeMy WebLinkAboutOrdinance No. 3215-2021KENAI
CITY OF KENAI
ORDINANCE NO. 3215-2021
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 WATER AND SEWER CAPITAL PROJECTS FUNDS TO PROVIDE
SUPPLEMENTAL FUNDING FOR THE WELLHOUSE #1 RELOCATION PROJECT AND
AUTHORIZING THE ISSUANCE OF A CONTRACT FOR THE PROJECT.
WHEREAS, Well house #1 suffered severe damages during the 2018 earthquake with areas of
the foundation subsiding five to six inches; and,
WHEREAS, staff in coordination with our insurance carrier counterparts successfully assembled
and agreed to a project scope to correct the damages; and,
WHEREAS, on March 8, 2021 an Invitation to Bid was released with Construction Documents
prepared by Nelson Engineering with bids due on April 19, 2021; and,
WHEREAS, the following bids were received:
Contractor Base Bid
Deductive Alternate
Polar North $242,961.40
$71,956.38
Peninsula Construction $275,850.00
$82,722.50
BMGC $487,352.00
$255,763.50
and,
WHEREAS, Polar North Construction was found to be the lowest responsive responsible bidder,
and Administration is in support of award to Polar North Construction for the base bid amount of
$242,961.40; and
WHEREAS, award of this project will allow the existing metal building structure to be relocated
over to the Water Treatment Facility located on Shot Gun Drive and placed on a new concrete
foundation where it will be used as a storage facility, and the remaining well house infrastructure
will be demolished, abandoned and capped in compliance with the State of Alaska Department
of Environmental Conservation (DEC) requirements; and,
WHEREAS, the total project cost share is anticipated as follows: insurance carrier cost
participation at $179,665.02 with City share participation at $109,742.38 which covers all project
costs including design, construction, admin services, and contingency; and,
WHEREAS, award and completion of this work is in the best interest of the City.
Ordinance No. 3215-2021
Page 2 of 3
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That the City Manager is authorized to accept additional insurance proceeds in the
amount of $123,165.02 for total insurance proceeds of $179,665.02.
Section 2. That the estimated revenues and appropriations be increased as follows:
Water & Sewer Fund:
Increase Estimated Revenues—
Appropriation of Fund Balance $16 242.38
Increase Appropriations —
Transfer to Water & Sewer Capital Project Fund $].0 242.38
Section 3. That the estimated revenues and appropriations be increased as follows:
Water & Sewer Capital Project Fund
Increase Estimated Revenues—
Restitution $123,165.02
Transfer from Water & Sewer Fund 16.242.38
$139.407.40
Increase Appropriations —
Construction $139.407.40
Section 4. That the City Manager is authorized to execute a contract with Polar North
Construction, the lowest responsive bidder in the amount of $242,961.40 for the demolition,
moving and reconstruction of the Wellhouse #1 building. Further, the City Manager is authorized
to issue a purchase order to Polar North Construction in the amount of $266,961.40 which
includes $24,000 in contingency for completion of the project.
Section 5. 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 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2"d day of June, 2021.
ATTEST:
New Text Underlined; [DELETED TEXT BRACKETED]
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Ordinance No. 3215-2021
Page 2 of 3
ami Heinz, MMC, City Clerk
Approved by Finance:
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New Text Underlined; [DELETED TEXT BRACKETED]
Introduced: May 19, 2021
Enacted: June 2, 2021
Effective: June 2, 2021
KENAI
City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-77941907.283.75351 www.kenaixity
MEMORANDUM
TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Scott Curtin
DATE:
May 12, 2021
SUBJECT:
Ordinance No. 3215-2021
The purpose of this memo is to request Council's approval to accept insurance proceeds from
damages sustained to Wellhouse 1 during the November 2018 earthquake as well as award of
a construction agreement for modifications to relocate the Wellhouse. As this Wellhouse has
historically been a very low producing well that has not seen much use since the construction of
the water treatment facility, abandonment and capping of this well supports the long term needs
of the utility and is in the best interest of the city.
The damages were primarily focused around the foundation settling. While the existing concrete
foundation is no longer useable the steel building itself remains intact and in relatively good
condition considering the age of the building. The Public Works department intends to repurpose
the structure as a much needed storage facility for parts and accessories, in support of the utility,
to be located adjacent to the Water & Sewer office trailer off of Shotgun Drive. This will provide
a more appropriate and secure location than other storage options the department is currently
utilizing, including the reservoir building at the airport and Wellhouse 3.
The existing well and appurtenances will be capped and abandoned in compliance with
Department of Environmental Conservation (DEC) requirements. Completion of this work
removes a level of risk and potential liability from the utility by eliminating an unmanned conduit
to the aquifer.
The project was competitively bid with three bids received and Polar North Construction as the
successful bidder with a total construction cost of $242,961.40. Polar North is a very familiar
contractor to the City having recently completed the WAS Pump installations at the WWTP as
well as the Vault Restrooms project at the beaches. Completion of this project is anticipated for
late this calendar year.
Council's support is respectfully requested.
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