HomeMy WebLinkAboutOrdinance No. 3324-2022100,
KENAI
CITY OF KENAI
ORDINANCE NO. 3324-2022
Sponsored by: Administration
AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT
SPECIAL REVENUE AND AIRPORT SNOW REMOVAL EQUIPMENT CAPITAL PROJECT FUNDS
AND AUTHORIZING THE PURCHASE OF AIRPORT SNOW REMOVAL EQUIPMENT.
WHEREAS, Resolution 2022-18 adopting the City's Capital Improvement Plan for Fiscal Years 2023 -
2027 included the purchase of two Runway Broom Replacements; and,
WHEREAS, the Kenai Municipal Airport (ENA), Airport Improvement Program (AIP) Entitlement Funds
balance through federal fiscal year 2023 is $2,350,000; and;
WHEREAS, the ENA Airport Capital Improvement Program in coordination with Federal Aviation
Administration (FAA) has programmed the replacement of two pieces of Snow Removal Equipment
(SRE) in federal fiscal year 2023; and,
WHEREAS, the Airport anticipates federal AIP funding to replace two pieces of SIRE by May 2023; and,
WHEREAS, the Airport anticipates federal AIP funding to be 93.75% of eligible costs; and,
WHEREAS, the Airport will fund the remaining 6.25% of eligible costs; and,
WHEREAS, current manufacturer lead times exceed 365 days; and,
WHEREAS, the State of Alaska Contract Award CA2284-21 allows for Alaska political subdivisions to
cooperatively purchase from this contract; and,
WHEREAS, KMC 7.15.070(b)(4) allows for purchases of equipment purchasable under contract of
another governmental agency; and,
WHEREAS, the estimated cost for each piece of equipment excluding shipping from Seattle to ENA is
$816,000; and,
WHEREAS, the estimated cost of shipping all equipment from Seattle to ENA is $80,000; and,
WHEREAS, approval of this Ordinance is in the best interest of the Airport and the City.
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 execute an Agreement with M-B Companies, Inc.
in the amount of $1,712,000.
Section 2. That the following budget revision is authorized:
Airport Special Revenue Fund:
Increase estimated revenues —
Appropriation of Fund Balance $1 72� 0 00_Q
Increase Appropriations —
New Text Underlined; [DELETED TEXT BRACKETED]
Ordinance No. 3324-2022
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Transfer to Airport Snow Removal Equipment Capital Project Funds $1.720.000
Airport Improvement Capital Fund:
Increase Estimated Revenues —
Transfer from Airport Special Revenue Fund $1 720.000
Increase Appropriations —
Equipment $
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
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 4T" DAY OF JANUARY, 2023.
ATTEST:
i eer, MC, City Clerk
Approved by Finance:
r
/a—maes Baisden, Vice Mayor
Introduced:
Enacted:
Effective:
New Text Underlined; [DELETED TEXT BRACKETED]
December 21, 2022
January 04, 2023
January 04, 2023
K�
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City of Kenai 1210 FiJalgo Ave, Kenai, AK 99611-77941907.283.75351 www.kenaixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Paul Ostrander, City Manager
FROM: Eland Conway, Airport Manager
DATE: December 6, 2022
SUBJECT: Ordinance No. 3324-2022 - Increasing Estimated Revenues and
Appropriations in the Airport Special Revenue and Airport
Improvements Capital Project Funds and Authorizing the Procurement
of Airport Snow Removal Equipment
The purpose of this memo is to request Council's approval to appropriate funds to enter into an
agreement with M-B Companies, Inc. for the procurement of two pieces of airport Snow Removal
Equipment (SRE). Both pieces of equipment were programmed in the City of Kenai FY 2023 -
2027 Capital Improvement Plan adopted by Council through Resolution 2022-18.
Through the FAA Airport Improvement Program (AIP), the airport has carried over a balance of
entitlement funds in the amount of $2.35M as of federal FY2023. These funds are earmarked for
these two pieces of SRE and expected to be made available to the Airport by May 2023.
Current lead times for the MB2 multi -tasking snow removal chassis with cradling broom exceed
365 calendar days. Appropriating airport funds will allow the airport to enter into an agreement
with M-B Companies, Inc. in advance of FAA funding, and allow the airport to receive the SRE in
a reasonable amount of time for use next winter.
Historically the airport has appropriated funds to expedite/facilitate AIP projects and generally
received reimbursement prior to project completion or upon project closeout.
On May 1, 2021 the State of Alaska awarded a contract (CA2284-21 Amendment 1) to M-B
Companies, Inc. for the purchase of Tractors and Towed Cradling Brooms. This contract allows
other Alaska political subdivisions to cooperatively purchase from the resulting contract. The
contract does not include shipping from Seattle to Kenai, these shipping costs have been
estimated based on recent SRE shipping costs.
Your consideration and support is respectfully requested.
Qty. Description Total FAA Grant Funding (93.75%) $ 1,604,946
2 MB2 $ 1,631,943 Airport Funding (6.25%) 106,997
2 Shipping - Seattle to Kenai (Estimated) $ 80,000
Total Estimated Cost Delivered $ 1,711,943
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