HomeMy WebLinkAboutResolution No. 2023-53KENAI
CITY OF KENAI
RESOLUTION NO. 2023-63
Sponsored by: Administration
A RESOLUTION AUTHORIZING A BUDGET TRANSFER IN THE VINTAGE POINT CONGREGATE
HOUSING IMPROVEMENT CAPITAL FUND, AND AUTHORIZING A CONSTRUCTION AGREEMENT
AND CORRESPONDING PURCHASE ORDER FOR THE VINTAGE POINT BOILER AND CONTROLS
REPLACEMENT PROJECT.
WHEREAS, a formal Invitation to Bid for the Vintage Point Boiler and Controls Replacement Project was
released on August 2, 2023 with Bids due on August 28, 2023 with the following bids received:
Bidders
Base Bid Total
Additive Alt 1
Total Bid
Orion Construction Inc.
$ 399,400.00
$ 104,450.00
$ 503,850.00
Norcoast Mechanical
$ 450,000.00
$ 114,000.00
$ 564,000.00
Ameresco, Inc.
$ 451,927.00
$ 241,800.00
$ 693,727.00
Sturgeon Electric Company, Inc.
$ 592,460.00
$ 200,150.00
$ 792,610.00
; and,
WHEREAS, Orion Construction, Inc. was found to be the lowest responsive and responsible bidder; and,
WHEREAS, current funding in support of the project totals approximately $383,000 and this Resolution
transfers an additional $170,000 to award the contract while providing $30,000 in project contingency
and approximately $20,000 in administration costs; and,
WHEREAS, award to Orion Construction, Inc. is in the best interest of the City; and,
WHEREAS, this project also includes the supply and installation of a backup generator for the facility
which was bid as Additive Alternate 1, for which Council provided $100,000 in funding through adoption
of the FY2024 Capital Improvement Plan and passage of the FY2024 Annual Budget.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to reallocate the existing capital projects funds as
detailed below:
Congregate Housinq - Congregate Housing Capital Project Fund:
Decrease Expenditures:
Apartment Kitchen / Bathroom Remodel project - Construction $170,000
Increase Expenditures:
Vintage Pointe Boiler Design & Replacement project - Construction $-LZ-QMQ
Section 2. That the City Manager is authorized to execute a construction contract with Orion
Construction, Inc. in the amount of $503,850 and to issue a corresponding purchase order in that same
amount, and that $30,000 shall be available as project contingency for the processing of change orders
and with the remaining funds available for city administration costs.
Section 3. That this Resolution takes effect immediately upon passage.
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Resolution No. 2023-53
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PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 6T" DAY OF SEPTEMBER, 2023.
Brian Gabriel 9r., Mayor
ATTEST:
die ll-e San M , City Clerk
Approved by Finance: _ jz
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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: August 29, 2023
SUBJECT: Resolution 2023-53
The Vintage Point Boilers & Controls Replacement Project was released for formal bidding on
August 2, 2023 with bids due on August 28, 2023. The project will replace one large boiler, that
is original to the facility and at the end of its useful life, with two new high efficiency condensing
boilers including replacements of the circulation pumps. Additionally, a backup power generator
as previously requested by the Council on Aging, is included with this work and was bid as
Additive Alternate 1.
Bids came in higher than originally anticipated and require the budget transfer included within this
Resolution. Completion of this project is the highest priority for Congregate Housing. The funds
taken from the Kitchen / Bath Remodel project will be restored within the Capital Improvement
Plan as budget and funding allows. Council can expect to see updated information regarding that
project within next years FY2025-2029 Capital Improvement Plan.
The additional costs are largely associated with the need to maintain facility heat and hot water
at all times during construction. The mechanical room is not large enough to install the new boilers
before removing the old one. This requires the use of temporary heat for a period of time until the
new boilers can become operational.
The successful completion of this project is expected to have significant cost savings for the
facility. The newer technology is much more efficient than the old cast iron boiler. The facility now
having two boilers will make servicing of the units less complicated as one unit can be taken down
while the other remains in service. Having two operational boilers also provides improved
resiliency to the facility, limiting the likelihood of emergencies resulting in significant cost impacts
to the residents and the City.
It should also be noted that the two existing water heaters for the facility are not being replaced
with this project at this time. Their current condition was not as bad as the existing boiler. They
will be connected to the new boilers and placed on the Capital Improvement Plan for replacement
four to five years from now.
Completion of this project is in the best interest of the City. Council's approval is respectfully
requested. Photos below are of the items used as the basis of design.
Benchmark Platinum
750 - 6000 MSH
0
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