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HomeMy WebLinkAboutOrdinance No. 3362-2023f KENAI CITY OF KENAI ORDINANCE NO. 3362-2023 Sponsored by: Administration AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT SPECIAL REVENUE AND AIRPORT IMPROVEMENTS CAPITAL PROJECT FUNDS TO PROVIDE SUPPLEMENTAL FUNDING FOR THE KENAI MUNICIPAL AIRPORT'S SAND STORAGE FACILITY PROJECT AND AUTHORIZING A CONTRACT AMENDMENT FOR PROFESSIONAL SERVICES. WHEREAS, the Kenai Municipal Airport (KMA) Sand Storage Facility project was authorized by Council through Ordinance 3155-2020 effective October 7, 2020; and, WHEREAS, the Ordinance authorized a Construction Contract to Orion Construction in the amount of $2,289,000 and awarded Contract Amendment 1 to HDL Engineering Consultants to cover contract administration fees proposed at $190,332 for a total design agreement to date of $456,013; and, WHEREAS, this project has experienced significant delays arising from the COVID pandemic and the supply chain issues created as a result of the pandemic, causing the need for significant additional construction administrative services; and, WHEREAS, this Ordinance provides supplemental funding in the amount of $100,000 to cover the additionally requested construction administrative costs of $132,993 to carry the project through completion anticipated for end of the calendar year 2023; and, WHEREAS, existing contingency funding is available to make up the difference between the $132,993 HDL Engineering Consultants Contract Amendment #2 and the $100,000 in supplemental funding being requested; and, WHEREAS, staff is coordinating with the Federal Aviation Administration (FAA), and expects a significant portion of these costs to be grant eligible and reimbursable to the City; and, WHEREAS, Council will see an additional Ordinance at a later date for appropriation of the Federal Aviation Administration (FAA) grant share once these amounts are known and confirmed; and, WHEREAS, completion of this Ordinance at this time will allow the design team to continue to support the project and charge for their services against the funding being provided with passage of this Ordinance; and, WHEREAS, staff evaluation of the services provided to date and the requested fees for continued services are reasonable given the circumstances surrounding the project; and, WHEREAS, approval of this Ordinance and authorization of Contract Amendment #2 to HDL Engineering Consultants in the amount of $132,993 is in the best interest of the City; and, WHEREAS, total project costs to date will then be $2,289,000 for Construction and $589,006 for Design & Construction Administrative Services for a total project cost of $2,878,006. 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: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3362-2023 Page 2 of 2 Airport Special Revenue Fund: Increase Estimated Revenues — Appropriation of Fund Balance 100 000 Increase Appropriations — Transfer to Airport Improvement Capital Project Fund $1 Airport Improvement Capital Project Fund: Increase Estimated Revenues — Transfer from Airport Special Revenue Fund 100 000 Increase Appropriations: KMA Sand Storage Facility (329) — Construction Section 2. That the City Manager is authorized to execute Contract Amendment #2 with HDL Engineering Consultants in the amount of $132,993 and increase their existing purchase order 120153 by that same amount. 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 5T" DAY OF JULY, 2023. ATTEST: Michelle . Saner, City Clerk Approved by Finance: C Brian Gabriel Sr., Mayor Introduced: Enacted: Effective: New Text Underlined; [DELETED TEXT BRACKETED] June 21, 2023 July 5, 2023 July 5, 2023 INV KFN�I City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 wwwIenaixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Scott Curtin, Public Works Director DATE: June 14, 2023 SUBJECT: Ordinance 3362-2023 — Supplemental Funding for the Kenai Municipal Airport Sand Storage Facility This Ordinance is intended to provide supplemental funding for the Kenai Municipal Airport (KMA) Sand Storage Facility project to allow the design team to continue to provide services in support of this project. As Council is aware this project has experienced significant time delays. The original contract award to Orion Construction was in October 2020 and significant supply chain challenges became apparent with varying COVID 19 restrictions nationwide. Construction was able to restart this spring with all materials now sourced and available. The concrete foundation was poured on June 14"', 2023 with structural steel on site with planned installation through July. The overall project is expected to be completed by October. To get to this point significant coordination with the Contractor and the design team was required well beyond what a typical project would be under normal circumstances. The requested contract amendment #2 to HDL Engineering in the amount of $132,993 is intended to provide services through the end of the project including closeout with the FAA. They include costs from all of HDL sub -consultants including architectural, structural, mechanical and electrical, as well as their own civil and contract admin fees. The $100,000 supplement requested is enough to cover these costs with existing contingency funds. Staff is working with the FAA on contract change concurrence and intends to bring back to Council at a later date another Ordinance to appropriate the FAA's grant share. This project remains a priority for the Airport, and staff looks forward to the benefits it will provide going into the next winter season. Council will continue to be kept informed of the projects progress through the department's midmonth reports. Council's support of this Ordinance is respectfully requested. I LLU Ij I L-A 0, a .Axml§lp,jwb Eno Ai r W . V14 A Aild