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HomeMy WebLinkAboutOrdinance No. 3302-2022� Sponsored by: Administration KENAI CITY OF KENAI ORDINANCE NO. 3302-2022 AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE WATER AND SEWER SPECIAL REVENUE AND WASTEWATER TREATMENT PLANT IMPROVEMENTS CAPITAL PROJECT FUND AND AUTHORIZING A CONSTRUCTION AGREEMENT AND PURCHASE ORDER FOR THE SLUDGE PRESS REPLACEMENT PROJECT. WHEREAS, a formal Invitation to Bid was released on June 7, 2022 seeking construction services to provide for the replacement of the 40+ year old sludge press at the waste water plant; and, WHEREAS, bids were originally due on June 28, 2022 and based on a lack of interest from contractors the due date was extended to July 22, 2022; and, WHEREAS, two bids were received by the City, with the low bid being withdrawn at the request of the bidder, leaving Blazy Construction the lowest responsive and responsible bidder at a cost of $1,437,913; and, WHEREAS, the recommendation from City Administration is to award the construction agreement for the Sludge Press Replacement project to Blazy Construction for the total cost of $1,437,913; and, WHEREAS, this Ordinance will also appropriate contingency funding for the processing of change orders in the amount of $72,000, approximately 5% of total construction contract, as well as $25,000 for City Admin services, and $143,000 for Engineering Contract Administration Services, for a total appropriation cost of $240,000. 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 — Appropriation of Fund Balance $ 42_O"o Increase Appropriations — Transfer to Wastewater Treatment Plant Improvements Capital Project Fund $240.000 Section 2. That the estimated revenues and appropriations be increased as follows: Wastewater Treatment Plant Improvements Capital Project Fund: Increase Estimated Revenues — Transfer from Water and Sewer Special Revenue Fund $240,000 Increase Appropriations — Construction $240.000 Section 3. That the City Manager is authorized to execute a Construction Agreement in the amount of $1,437,913, and to issue a Purchase Order to Blazy Construction in the amount of $1,509,913 for the New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3302-2022 Page 2 of 2 contract amount of $1,437,913 and $72,000 of contingency funding, which may be authorized for construction change orders during completion of the project. 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 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 17TH DAY OF AUGUST, 2022. ATTEST: Mic S r, M C, City Clerk Approved by Finance: Brian Gabriel Sr., Mayor Introduced: Enacted: Effective: New Text Underlined; [DELETED TEXT BRACKETED] August 3, 2022 August 17, 2022 August 17, 2022 r-, I ev k�v KENAI City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.kenai.city MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin, Director of Public Works DATE: July 27, 2022 SUBJECT: Ordinance No. 3302-2022 - Sludge Press Replacement The purpose of this memo is to request Council's support in awarding a Construction Agreement and corresponding purchase order for the Wastewater Treatment Plant's Sludge Press Replacement project and to provide supplemental funding in support of the project. As Council may recall this is a primary project for the department to replace a 40+ year old piece of equipment, an existing belt press, with a new Andritz screw press. This press processes municipal wastewater sludge as one of the last steps in the treatment process prior to hauling the dewatered sludge to the landfill. Staff has done an exceptional job of keeping the existing equipment operational while waiting for the new equipment to arrive. The Andritz Press was competitively sourced almost a year ago now, and the anticipated delivery for the new press is currently late October 2022. The contracted cost of the Andritz press is $225,000 for equipment only. Through development of the project, in coordination with the Engineering team, additional items in need of correction were identified in support of the project. These additional items are the reason additional funding is being requested at this time. The sludge pumps which feed the press are being replaced with this work, a new conveyor system for loading the sludge into disposal containers is now included, new air handling equipment to increase air exchanges within the space are also being completed with this work. The Engineer's Estimate for this work was $1,307,050 with Blazy Construction's bid totaling $1,437,913. A second bid was received by the department in the amount of $900,000. On July 27"', 2022 that contractor requested his bid to be withdrawn due to miscalculations on their part. Completion of this work now is essential for the department. Parts have not been available for our existing press for some time, with failed pieces often requiring fabrication to maintain operability. This project has been identified through earlier Capital Improvement plans and is a big step in successfully maintaining our facilities and equipment. Council's support is respectfully requested.