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HomeMy WebLinkAboutOrdinance No. 3428-2024 Substitutef� Sponsored by: Administration ti KENAI CITY OF KENAI ORDINANCE NO. 3428-2024 (SUBSTITUTE) AN ORDINANCE INCREASING ESTIMATED REVENUE AND APPROPRIATIONS IN THE AIRPORT OPERATIONS FACILITY CAPITAL PROJECT FUND, ACCEPTING A GRANT FROM THE FEDERAL AVIATION ADMINISTRATION AND AWARDING A CONSTRUCTION AGREEMENT FOR THE KENAI MUNICIPAL AIRPORT AIRCRAFT RESCUE AND FIRE FIGHTING FACILITY REHABILITATION PROJECT. WHEREAS, the Kenai Municipal Airport Operations and Aircraft Rescue and Fire Fighting (ARFF) Facility was built with Airport Improvement Program (AIP) funds in 2002; and, WHEREAS, the HVAC system has reached the end of its lifecycle due to it being obsolete and a boiler heat exchanger cracking and being temporarily sealed; and, WHEREAS, the facility has Snow Removal Equipment (SRE) and ARFF housed inside; and, WHERAS, the ARFF Facility rehabilitation project is Federal Aviation Administration (FAA) eligible for grant funds comprised of 65% Airport Improvement Program funds and 35% City funds; and, WHEREAS, the grant offer is for $525,925 requiring a local share of $ 283,191, for a total project cost of $809,116; and, WHEREAS $557,447 previously appropriated in the Airport Operations Facility Capital Project Fund for the project will be utilized for the City's 35% share; and, WHEREAS the remaining balance from the previously appropriated $557,447 will be transferred back to the Airport Special Revenue Fund by a subsequent ordinance with the exception of $50,000 as available contingency funding for the processing of future change orders; and, WHEREAS, the Airport agrees to the grant condition that ARFF and SRE equipment and vehicles will be housed and maintained in a state of operational readiness on and for the airport; and, WHEREAS, completion of this work will improve and stabilize the efficiency of the facility, reduce utility costs, and safeguard the HVAC system for years to come; and, WHEREAS, the City advertised an Invitation to Bid on July 23, 2024 with bids due on August 13, 2024; and, WHEREAS, the following bids were received: Bidder Total Cost Orion Construction Inc. $699,400 and, WHEREAS, one bid was received with Orion Construction Inc. as the lowest responsive bid; and, WHEREAS, award of the bid to Orion Construction Inc. is in the best interest of the City. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3428-2024 (Substitute) Page 2 of 2 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 a grant from the Federal Aviation Administration in the amount of $525,925 and to expend grant funds in accordance with the provisions of the grant. Section 2. That estimated revenues and expenditures be increased as follows: Airport Operations Facility Capital Prolects Fund: Increase in Estimated Revenues — Appropriation of FAA Grant Funds $ Increase Appropriations — Construction City Administration $500,925 22 5 000 525 92 Section 3. That the City Manager is authorized to enter into a construction agreement with Orion Construction Inc. for $699,400 and to increase HDL Engineering's existing purchase order 129216 from $14,990 to $29,990, an increase of $15,000 to allow for construction admin services. 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: 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 21 ST DAY OF AUGUST, 2024. EST: Michelle , City Clerk Approved by Finance: ' Brian Gabriel Sr., Mayor Introduced: Enacted: Effective: New Text Underlined; [DELETED TEXT BRACKETED] August 7, 2024 August 21, 2024 August 21, 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: Derek Ables, Airport Manager DATE: August 14, 2024 SUBJECT: Ordinance No. 3428-2024 (Substitute) - Increasing Estimated Revenue and Appropriations in the Airport Operations Facility Capital Project Fund, Accepting a Grant from the Federal Aviation Administration and Awarding a Construction Agreement for the Kenai Municipal Airport Aircraft Rescue and Fire Fighting Facility Rehabilitation Project This memo seeks approval of the City Council to accept a grant offer from the Federal Aviation Administration (FAA) to replace the HVAC equipment at the Kenai Municipal Airport ARFF Building for $525,925. This represents 65% of the projected costs and requires a local match of $283,191 (35%) for a total project cost of $809,116. The HVAC equipment, including two boilers and associated controls, needs replacement at the Kenai Municipal Airport ARFF Building. This project is grant eligible. Federal guidance requests a grant application based on hard bids, with a grant application being requested and accepted as soon as possible to meet the Federal Aviation Administration's year end on September 30th. In order to meet the deadline, the City issued the Invitation to Bid on July 23, 2024 with 1 bid received on August 13, 2024. A construction agreement will be entered into with Orion Construction Inc. for $699,400. Council's support is respectfully requested.