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HomeMy WebLinkAboutOrdinance No. 3426-2024E N A I CITY OF KENAI ORDINANCE NO. 3426-2024 Sponsored by: Administration AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT SNOW REMOVAL EQUIPMENT CAPITAL PROJECT FUND AND ACCEPTING A GRANT FROM THE FEDERAL AVIATION ADMINISTRATION FOR THE PURCHASE OF SNOW REMOVAL EQUIPMENT - WHEEL LOADER & PLOW/SANDING TRUCK FOR THE KENAI MUNICIPAL AIRPORT AND AUTHORIZING THE UTILIZATION OF THE STATE OF ALASKA FLEET PURCHASING AGREEMENT. WHEREAS, The City has received a grant offer from the Federal Aviation Administration (FAA) for the purchase of replacement snow removal equipment; and, WHEREAS, new efficient equipment will support meeting operational requirements, minimize delays, and expedite a safe environment for the aircraft and traveling public; and, WHEREAS, the FAA allows for the joint purchase of snow removal equipment utilizing Alaska State Fleet Purchasing Agreements; and, WHEREAS, SRE purchases through this project include replacement of equipment that has exceeded its useful life cycle and replacement parts are difficult to procure and costly; and, WHEREAS, the CAT 980 Wheel Loader will be purchased under State Contract SEF 2179 and the Plow Truck and Sander will be purchased under State Contract SEF 2277 respectively; and, WHEREAS, the cost share for this purchase will be at the typical 93.75% FAA and 6.25% City share; and, WHEREAS, the initial grant offer is for $1,258,543, with $1,179,884 FAA share and $78,659 as the City share; and, WHEREAS, an additional City share of $11,799 is being requested for subsequent change orders and ineligible grant expenditures like maintenance manuals; and, WHEREAS $1,720,000 was previously appropriated in the Airport Snow Removal Equipment Capital Project Fund for the purchase of equipment will be utilized for the City share; and, WHEREAS the remaining balance from the previously appropriated $1,720,000 will be transferred back to the Airport Special Revenue Fund by a subsequent ordinance; and, WHEREAS, a double reading is requested due to the FAA requiring acceptance of this grant no later than August 11, 2024; 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; and, WHEREAS, the purchase of this equipment is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3426-2024 Page 2 of 2 Section 1. That the City Manager is authorized to accept a Federal Aviation Administration grant in the amount of $1,179,884 and expend the funds in accordance with the provisions of the grant. Section 2. That estimated revenues and expenditures be increased as follows: Airport Snow Removal E uiDment Capital Project Fund: Increase Estimated Revenues — Appropriation of FAA Grant Funds $1 1 7=9.884 Increase Appropriations: Machinery & Equipment City Administration $1,154,884 25.000 Section 3. That the City Manager is authorized to issue a purchase order to NC Machinery in the approximate amount of $769,983 for the purchase of a CAT 980 Loader, and to Bob Services LLC in the approximate amount of $440,000 for the purchase of a plow truck and sander utilizing State of Alaska Fleet Purchasing Agreements. Section 4. SeverabilityL 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: That pursuant to KMC 1.15.070(o, this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 7T" DAY OF AUGUST, 2024. Z : Mi a .San r, , City Clerk Approved by Finance: ,Y-,- �'� �- - Brian Gabriel Sr., Mayor Introduced: August 7, 2024 Enacted: August 7, 2024 Effective: August 7, 2024 New Text Underlined; [DELETED TEXT BRACKETED] KENAI City of Kenai 1210 Ficialgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www1enai.city MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: July 28, 2024 SUBJECT: Ordinance No. 3426-2024 - Increasing Estimated Revenues and Appropriations in the Airport Snow Removal Equipment Capital Project Fund and Accepting a Grant from the Federal Aviation Administration for the Purchase of Snow Removal Equipment - Wheel Loader & Plow/Sanding Truck for the Kenai Municipal Airport and Authorizing the Utilization of the State of Alaska Fleet Purchasing Agreement. The purpose of this memo is seeking the approval of the City Council to accept a grant offer for the Airport Improvement Program, project number 3-02-0142-078-2024, from the Federal Aviation Administration and purchase of Snow Removal Equipment (SRE) to include a wheel loader and plow/sanding truck for $1,179,884. This represents 93.75% of projected cost and requires a local match of $78,659 (6.25%) for a total project cost of $1,258,543. An additional match of $11,799 is being requested to cover subsequent change orders and ineligible grant expenditures like maintenance manuals. SRE purchases through this project include replacement of equipment that has exceeded its useful life cycle and replacement parts are difficult to procure and costly. The wheeled loader will replace a 2012 Case loader 1021 F that incurred part costs of almost $70,000 since 2016. The plow truck/ sander will replace a 2000 Sweepster. New efficient equipment will support meeting operational requirements, minimize delays, and expedite a safe environment for the aircraft and traveling public. A purchase order will be issued to NC Machinery for a 2024 CAT 980 wheel loader package for approximately $769,983.00 and will be procured using the State of Alaska Equipment Fleet Contract Award 2179. The plow/sand truck will be procured using the State of Alaska Equipment Fleet Contract Award 2277. A purchase order for a 2026 model plow truck/ sander for approximately $440,000 will be issued to Bob's services, LLC. The Airport is requesting a double reading of this ordinance due to the FAA requiring acceptance of this grant no later than August 11, 2024. Council's support is respectfully requested.