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Home My WebLink AboutOrdinance No. 3359-2023Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3359-2023 AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND AND MUNICIPAL ROADWAY IMPROVEMENTS CAPITAL FUND TO PROVIDE SUPPLEMENTAL FUNDING TO THE 2023 NORTH WILLOW STREET ROADWAY IMPROVEMENTS, 2023 FIRST AVENUE ROADWAY REPAIRS, AND 2023 MISCELLANEOUS ROADWAY REPAIRS PROJECTS. WHEREAS, the City of Kenai released the 2023 N. Willow St. Roadway Improvements, 2023 First Avenue Roadway Repairs, and 2023 Miscellaneous Roadway Repairs projects for construction bids on May 18, 2023 with bids due on June 1, 2023; and, WHEREAS, the lowest bids received on all three projects were in excess of the budgeted and engineer's estimated amounts; and, WHEREAS, additional appropriations are required to award contracts for construction; and, WHEREAS, appropriation of these funds and completion of these projects at this time is in the best interest of the City as inflationary costs are expected to continue to rise over the coming year and it is unlikely these projects would receive lower bids at a later date; and, WHEREAS, due to the time constraints associated with completing these projects this summer season, staff is requesting introduction and approval of this Ordinance at the same meeting on June 211t, 2023; and, WHEREAS, pursuant to KMC 1.15.070 (d) the City may introduce and finally pass on the same day, an ordinance making, repealing, transferring or otherwise changing an appropriation. 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: General Fund: Increase Estimated Revenues — Appropriation of Fund Balance $274.000.00 Increase Appropriations — Transfer to Municipal Roadway Improvements Capital Fund $274.000.00 Municipal Roadway Improvements Capital Fund: Increase Estimated Revenues — Transfer from General Fund $274,000.00 Increase Appropriations — 2023 N. Willow St. Roadway Improvements - Construction $95,000.00 2023 First Avenue Roadway Repairs - Construction 87,000.00 2023 Miscellaneous Roadway Repairs - Construction 92.000.00 Total $274.000.00 New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3359-2023 Page 2 of 2 Section 2. 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 3. 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 21ST DAY OF JUNE, 2023. M Ql'� n Michelle San _MC, City Clerk Approved by Finance: hl"ezq� Brian Gabriel Sr., Mayor Introduced: Enacted: Effective: New Text Underlined; [DELETED TEXT BRACKETED] June 21, 2023 June 21, 2023 June 21, 2023 KENAI City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.kenaixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Scott Curtin, Public Works Director DATE: June 14, 2023 SUBJECT. Ordinance 3359-2023 — Supplemental Funding in Support of Municipal Roadway Improvement Projects This Ordinance is intended to provide supplemental funding in support of the Municipal Roadway Improvement Projects that were released for bids on May 18th with bids due on June 1st, 2023. The three projects including N. Willow St Roadway Improvements which extends from the intersection of Granite Point St. to just past the driveway entrance at 525 N. Willow for the Department of Forestry's leased lot; First Street repairs extending from the intersection at N. Spruce to Birch St; and Miscellaneous Roadway Repairs which will repair settled asphalt areas in nine different locations around the city. Bids for all three projects came in higher than anticipated and were in excess of our engineer's estimates. Upon review of the bids, looking at recent bids received by the Kenai Peninsula Borough and the City of Soldotna, as well as review of the State's Department of Labor Davis Bacon wages, it is clear that the inflationary environment is increasing costs for everyone. This coupled with a lack of competition here on the Peninsula continues to drive prices up. There simply is not enough firms with the manpower and resources to maintain a healthy vendor pool here. Understanding that inflation continues to persist, it is unlikely that these costs would be lower by waiting to bid until next spring. Wages as example, have risen 7% from April 1st, 2022 — April 1, 2023 according to the Department of Labor Title 36 Pamphlet 600 which regulates government wages for work on government contracts in excess of $25,000. 1 believe wages may see another 7% increase next April, which will only further impact the costs of these projects. This Ordinance is requesting an additional $274,000 so all three projects can move forward with completion dates within this construction season. Based on the urgency of the short construction season we are also requesting the Ordinance is introduced and heard at the same meeting, to allow the Contractors the greatest amount of time to successfully complete the work. The Public Works Department in coordination with our design teams will work on getting these projects out earlier in the year, extending bid times, and attempting to reach out to more bidders in an effort to increase interest in our projects. With that said I do believe award of these projects at this time remains in the best interest of the City. Council's approval for the additional funding is respectfully requested. W' IKJR-Oi-YAv (n YLWM 5TAEM PRDM<F 9' TOP56t 9: SG®�C FAOY �• ORCM W G3FM36 R _. SNW Cross Section of N. Willow Dr. E Od I9GH(-OFwalr M• 9ELar RYEET) IRQWE 1� liWW;06 • t SHTYIG fAJY (('' iTFY IO QLYiMG Lbf b' 11PE M 6/S9iQD FYL TVE CLV55YFD ,�9L AFD'O A 5C MWF�S�NtIE fh1CNO T PwblE C+a913+G 45YIAL1 MYFRAT _ ■ _ DMIaGE FEMM _ few [7 WAM MMM f u��+1 ACiE_I l_ E DI UM* F£QION p. StdL wa \,CO: oun Wk fi 3AIC AE B.I : Ift First Street typical damaged areas Page 2 of 3 The City of Kenai I www.kenai.city 11747 K r .+. a i 4 Ali }w+ KmRSEcmN LocA-noN8 -VIP SUB DMSI )N �C2J GWHIG SCME: I' = 2W' (zax,:a): 4' = 400' (11X17) Five of the Misc. Repair locations within the VIP Subdivision Page 3 of 3 The City of Kenai I www.kenaixity y