HomeMy WebLinkAboutResolution No. 2023-08KENAI
CITY OF KENAI
RESOLUTION NO. 2023-08
Sponsored by: Administration
A RESOLUTION REPEALING CITY COUNCIL ADOPTED POLICY 2018-02 - PROCEDURES FOR
INCLUDING CONTINGENCY FUNDING IN CONTRACTS.
WHEREAS, City Council Policy No 2018-02 Procedures for Including Contingency Funding in Contracts
was adopted by Resolution 2018-05 on February 7, 2018; and,
WHEREAS, the limits of KMC 7.15.020 - Purchases Requiring Council Approval, were last amended by
Ordinance 3306-2022, which was enacted on September 21, 2022; and,
WHEREAS, Ordinance 3306-2022 includes provisions to accommodate change orders to contracts to
increase the efficiency of operations when unforeseen circumstances are encountered; and,
WHEREAS, the annual budget process, the purchasing policies promulgated in KMC Chapter 7.15 -
Purchases and Sales, and the limits amended by Ordinance 3306-2022 ensure sufficient controls to
protect the public interest; and,
WHEREAS, City Council Policy No 2018-02 is no longer necessary to provide for efficient management
and proper controls over City contracts.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That City Council Policy No. 2018-02 is hereby repealed in its entirety.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 15TR DAY OF FEBRUARY, 2023.
Brian Gabriel Sr., Mayor
New Text Underlined, [DELETED TEXT BRACKETED]
K E N
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1 907.283.75351 www.6naixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Terry Eubank, City Manager
DATE: February 3, 2023
SUBJECT: Resolution No. 2023-08 - Repealing City Council Adopted Policy No.
2018-02 - Procedures for Including Contingency Funding in Contracts.
City Council Policy 2018-02 was adopted through Resolution No. 2018-05 on February 7, 2018
and is no longer needed.
With the enactment of Ordinance 3306-2022, procedures for including contingency funding in
contracts are no longer necessary as proper controls over City contracts are currently provided
for in KMC 7.15.020 - Purchases requiring Council approval.
Your consideration is appreciated.
If approved the following policy will be repealed in its entirety
POLICY NO.2018-02: Procedures for Including Contingency Funding in
Contracts.
Purpose
Inclusion of an appropriate Council approved contingency amount in contracts will provide for
efficient management while maintaining proper controls over City contracts.
Scope
Contracts where identified uncertainties justify the inclusion of an appropriate and council
approved contingency amount.
Policy
1. Including Contingency in Bids:
a. The administration will identify uncertainties in projects and include a bid item to cover
potential contingencies needed to complete the project.
b. This is a contingent sum in the bid schedule that if changed will not affect the order of
bidders from low to high.
2. Council Award of Contracts:
a. The administration will identify possible uncertainties and the amount of recommended
contingency in the memo accompanying the Council action.
b. The Council may approve or change the amount of recommended contingency prior
to approving the award of a contract.
3. Administration's Management of Awarded Contracts:
a. The administration will issue a Purchase Order and execute a contract for the amount
awarded by Council.
b. The administration may not authorize expenditures in excess of the contract amount
without additional approval from the Council.
c. If the administration seeks additional funding to complete the project, a report of how
the original contingency was expended will be provided, and justification for the
additional funding requested.
d. At the end of the project the administration will provide a report of the amount of and
how contingency funds were expended.
Effective Date: Approved by Resolution 2018-05
BRAN GABRIEL SR., MAYOR
ATTEST:
Jamie Heinz, City Clerk