HomeMy WebLinkAboutOrdinance No. 3406-2024KENAI
CITY OF KENAI
ORDINANCE NO. 3406-2024
Sponsored by: Administration
AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT
IMPROVEMENT CAPITAL PROJECT FUND AND AUTHORIZING A FINAL ADJUSTING CONTRACT
AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH HDL ENGINEERING FOR
CONSTRUCTION ADMINISTRATION SERVICES FOR THE 2020 KENAI MUNICIPAL AIRPORT SAND
STORAGE FACILITY PROJECT.
WHEREAS, the City of Kenai is nearing completion of the Airport's Sand Storage Facility Project located
at 515 N. Willow St.; and,
WHEREAS, funding for this project has been provided by two grants from the Federal Aviation
Administration identified as grant numbers 3-02-0142-064- 2020 and 3-02-0142-065-2021 respectively;
and,
WHEREAS, these grant funds are anticipated to cover 100% of the grant eligible costs associated with
the project; and,
WHEREAS, prior legislation including passage of Ordinances 3116-2020 and 3155-2020 appropriated
these grant funds and awarded a design agreement to HDL Engineering and a construction agreement
to Orion Construction in support of the project; and,
WHEREAS, this Ordinance appropriates the Federal Aviation Administration's share of HDL Engineering
contract amendments 2 & 3 in the total amount of $151,319 and Orion Construction's change orders 1,
2, & 3 in the total amount of $50,261.34; and,
WHEREAS, this will bring the total direct costs associated with the project to $607,332 for HDL
Engineering Design and Construction Administration Services and $2,339,261.34 for Orion
Construction's, Construction costs for a total direct project cost of $2,946,593.34; and,
WHEREAS, staff intends to seek reimbursement for other project costs including city staff administration
time, permit and utility fees associated with the project and will continue that work through grant closeout.
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 accept grant funding from the Federal Aviation
Administration in the amount of $201,580.34 for the grant eligible portions of HDL Engineering
Amendments 1 & 2, and Orion Construction's Change Orders 1, 2 & 3, and to allow staff to continue to
seek reimbursement for City Admin and other project related expenses during grant closeout.
Section 2. That the estimated revenues and appropriations be increased as follows:
Airport Improvements Capital Project Fund:
2020 Sand Storage Facility Project
Increase Estimated Revenues —
FAA Grant $201,580.34
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Ordinance No. 3406-2024
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Increase Appropriations —
Construction
Section 3. That the City Manager is authorized to increase HDL Engineering's Purchase. Order
120153 by $18,326 to a new total of $607,332.
Section 4. 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 5. Effective Date:
immediately upon enactment.
That pursuant to KMC 1.15.070(o, this ordinance shall take effect
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, A
ATTEST:
Ar—
Mic e e . ane , MC, City Clerk
Approved by Finance:
Introduced:
Enacted:
Effective:
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March 20, 2024
April 3, 2024
April 3, 2024
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:
March 12, 2024
SUBJECT:
Ordinance 3406-2024 Airport Sand Storage Facility
The Kenai Municipal Airport's Sand Storage Facility Project is nearing final completion and will be
entering grant closeout soon. This project was significantly delayed due to the timing of the
construction contract execution and COVID. Supply chain issues severely impacted the project.
Project history includes the original agreement with HDL Engineering to provide bid ready
construction documents which was executed on April 17, 2020 in the amount of $265,681. On
August 10, 2020 the project was released for construction bids, with bids due on August 31, 2020.
Orion Construction provided the winning construction bid at a total cost of $2,289,000.
On September 24, 2020 the City executed grant 3-02-0142-064 in the total amount of $1,954,101
with the Federal Aviation Administration with the understanding a second grant would follow in
the spring. On May 19, 2021 the City executed grant 3-02-0142-065 in the total amount of
$881,161, bringing the total grant funding to date to $2,835,262.
A formal construction agreement was executed with Orion Construction on October 15, 2020 for
the bid amount of $2,289,000. On October 16, 2020 Contract Amendment 1 was executed with
HDL Engineering to award construction administration services in the amount of $190,332
bringing their total contract to date to $456,013.
Throughout the course of the project, staff would process two additional contract amendments
with HDL Engineering and three construction change orders with Orion Construction in support
of the project as detailed below.
HDL Engineering
Original Contract - $265,681
Amendment 1 - $190,332
Awarded CA Services
Amendment 2 - $132,993
Additional services due to COVID delays
Amendment 3 - $18,326
Additional services through final completion
Orion Construction
Original Contract - $2,289,000
Change Order 1 - $0.00
Provided time extension only
Change Order 2 - $43,308.03
Owner requested additional work
Change Order 3 - $6,953.31
Owner requested additional work
This brings HDL Engineering's total services to $607,332 and Orion Construction's total
services to $2,339,261.34, with total design and construction costs of $2,946,593.34.
Staff will continue through closeout submitting costs associated with City Admin hours, permit
fees and utility permit and connection fees which are not currently included in the above
numbers. We expect a majority of these expenses to also be grant eligible.
For purposes of this Ordinance we are appropriating the FAA related funding for work associate
with HDL Engineering contract amendments 2 & 3, as well as Orion Construction's change
orders 1, 2 & 3, which combined total $201,580.34.
Council's approval is respectfully requested.
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