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Home My WebLink AboutResolution No. 2011-22the d[y KENA SKA CITY OF KENAI RESOLUTION NO. 2011 -22 Suggested by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ADDING PRIORITY NUMBER ELEVEN TO THE CITY OF KENAI CAPITAL IMPROVEMENTS PLAN PRIORITY LIST FOR STATE AND FEDERAL FUNDING REQUESTS FOR THE FISCAL YEAR 2012. WHEREAS, the Capital Improvements Plan (CIP) is a guide for capital expenditures; and, WHEREAS, the City of Kenai CIP process has involved consideration of existing plans, programmatic needs and public input; and, WHEREAS, subsequent to the adoption of the CIP Priority List by the City Council on October 6, 2010, a private sector development has provided the opportunity to move forward with an industrial park development in proximity to the Kenai Municipal Airport; and, WHEREAS, the City Council and Administration have discussed the possibility of a future industrial park; and, WHEREAS, there may be sources of grant funding to support the construction of infrastructure for an industrial park; and, WHEREAS, the addition of CIP priority number eleven does not negatively affect the previously adopted CIP Priority List; and, WHEREAS, Priority Number Eleven will be "Development of an Industrial Park Near the Kenai Municipal Airport." NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, CIP Priority Number Eleven be added to the City of Kenai Capital Improvements Plan Priority List for State and Federal Funding Requests for the Fiscal Year 2012.. PASSED BY THE COUNCIL OF THE CITY OF K r AI AS this second day of March, 2011. (`'4 �r.T /c,/ ATTEST: Carol L. Freas, City Clerk PAT PORTER, MAYOR thcct KENAI, ALASKA MEMO: Thank you for your attention in this matter. 'Village with a Past, Ct with a Future' 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 t' Telephone: 907 283 -7535 FAX: 907 283 -3014 I I I TO: City Council FROM: Rick Koch DATE: February 24, 2011 SUBJECT: Resolution 2011 -22, Adding Priority Number Eleven to the City of Kenai CIP Plan The purpose of this correspondence is to request your support of the above referenced resolution adding priority number eleven to the City's CIP Plan which was adopted by Resolution 2010 -57 on October 6, 2010. The construction of an access road and drill pad in the area of the proposed industrial park, as well as the possibility that grant funding may be available for the construction of infrastructure for an industrial park are conditions that were not known at the time the previous resolution was considered. 1992 Project Title: Kenai Kenai Industrial Park Development TPS Number: 56407 Priority: 11 Agency: Commerce, Community and Economic Development Grants to Municipalities (AS 37.05.315) Grant Recipient: Kenai FY2012 State Funding Request: $761,650 One -Time Need Brief Project Description: Development of an Industrial Park near the Kenai Municipal Airport. to facilitate growth of support/service companies to serve Funding Plan: Total Project Cost: $2,261,650 Funding Already Secured: (51,500,000) FY2012 State Funding Request: (5761,650) Project Deficit: $0 Explanation of Other Funds: The City of Kenai Municipal Airport owns the property to be utilized for the Kenai Industrial Park Development. For purposes of the project cost estimate the 60 acre parcel has been conservatively valued at $25,000 per acre, or $1,500,000. Detailed Project Description and Justification: With the elimination of oil and gas emplyment in the Kenai Peninsula it is important to facilitate the growth of additional /alternative development. the Kenai Municipal Airport already serves as the regional supply hub for air fuel delivery to Southwest Alaska, and other air service /supply activities to serve West Cook Inlet activities and Southwest Alaska Communities are a growing segment of businesses using the Kenai Municipal Airport. The development of a dedicated Industrial park in proximity to the Airport will further facilitate growth of support/service companies serving not only West Cook Inlet and Southwest Alaska, but the existing economic base of the Kenai Peninsula. A portion of the Industrial park is already under construction to serve a natural gas exploratory /production pad for Buccaneer Alaska. Construction is scheduled to begin in March 2011 and will be completed by October 2011. Project Timeline: 2011 -2012 Design, Permitting, Subdivision 2012 -2012 Roadway Construction Phase I Utilities Construction 2015 -2016 Phase II Utilities Construction 2020 -2010 Phase II Utilities Construction Entity Reponsible for the Ongoing Operation and Maintenance of this Project: City of Kenai Grant Recipient Contact Information: Name: Rick Koch Address: 210 Fidalgo Ave. Kenai, AK 99611 Phone Number: (283)822 -2 Email: rkoch @ci.kenai.ak.us 11:09 AM 2/12/2011 J 1 KENAI INDUSTRIAL PARK COST ESTIMATE Design Property Development Cost Item Description Unit Quantity Unt Price Sub -Total Design /Business Development Plan LS 1 100,000.00 100,000.00 Survey /Subdivision LS 1 50,000.00 50,000.00 Property Acquisition /Value Acre 60 25,000.00 1,500,000.00 Sub -Total 1,650,000.00 Access Road Construction Cost Item Description Unit Quantity Unt Price Sub -Total Clearing Grubbing Acre 5 8,500.00 42,500.00 Unclassified Excavation CY 7800 8.00 62,400.00 Classified Fill Backfill Ton 10,300 10.00 103,000.00 Crushed Aggregate Base Course Ton 2000 22.00 S 44,000.00 Signage LS 1 2,500.00 2,500.00 SWPPP LS 1 5,000.00 5,000.00 24" CMP W /Flared End Sections LF 1250 65.00 81,250.00 Survey LS 1 10,000.00 10,000.00 Sub -Total 350,650.00 Utilities Construction Phase I Cost Item Description Unit Quantity Unt Price Sub -Total Water Distribution Main 10" HDPE LF 600 100.00 60,000.00 Wastewater Collection Main LF 600 100.00 60,000.00 Electrical Main Extension LF 400 200.00 80,000.00 Electrical Services /Transformers EA 5 5,000.00 25,000.00 Natural Gas LF 600 30.00 18,000.00 Telephone /Telecomminucation LF 600 30.00 18,000.00 Sub -Total 261,000.00 Utilities Construction Phase II Cost Item Description Unit Quantity Unt Price Sub -Total Water Distribution Main 10" HDPE LF 1400 100.00 140,000.00 Wastewater Collection Main LF 1400 100.00 140,000.00 Electrical Main Extension LF 400 200.00 80,000.00 Electrical Services /Transformers EA 6 5,000.00 30,000.00 Natural Gas LF 1400 30.00 42,000.00 Telephone /Telecomminucation LF 1400 30.00 42,000.00 Sub -Total 474,000.00 Page 1 oft 2/12/2011 KENAI INDUSTRIAL PARK COST ESTIMATE Utilities Construction Phase III Cost Item Description Unit Quantity Unt Price Sub -Total Water Distribution Main 10" HDPE LF 800 100.00 80,000.00 Wastewater Collection Main LF 800 100.00 80,000.00 Electrical Main Extension LF 800 200.00 160,000.00 Electrical Services /Transformers EA 8 5,000.00 40,000.00 Natural Gas LE 1400 30.00 42,000.00 Telephone /Telecomminucation LF 1400 30.00 42,000.00 Sub -Total 444,000.00 Cost Estimate Summary Project Component(s) Estimated Cost Property Acquisition, Design, Roadway Phase I Utility Construction 2,261,650.00 Phase 0 Utility Construction 474,000.00 Phase III Utility Construction 444,000.00 Total 3,179,650.00 Page 2 of2 2/12/2011 the «ry of FIE Al. SKA A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ADOPTING THE CITY OF KENAI CAPITAL IMPROVEMENTS PLAN PRIORITY LIST FOR STATE AND FEDERAL FUNDING REQUESTS FOR THE FISCAL YEAR 2012. WHEREAS, the Capital Improvements Plan (CIP) is a guide for capital expenditures; and, WHEREAS, the City of Kenai CIP process has involved consideration of existing plans, programmatic needs and public input; and, WHEREAS, the CIP compliments the Legislative priorities, City Budget and Comprehensive Plan; and, WHEREAS, the Kenai City Council held a public hearing on the Capital Improvements Program adoption on October 6, 2010. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF' THE CITY OF KENAI, ALASKA, the City of Kenai Capital Improvements Plan Priority List for State and Federal Funding Requests for the Fiscal Year 2012, as provided in the attached Exhibit A, is adopted. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this sixth day of October, 2010. Carol L. Freas, City Clerk CITY OF KENAI RESOLUTION NO. 2010 -57 Suggested by: Administratio PAT PORTER, MAYOR i NOTES /COMMENTS The bluff erosion project has been the City of Kenai's number one Federal and State funding priority for at least the previous thrree years. Administration is requesting funding from the Govemor and area Legislators. To date, funding of approximately 1.5 minion has been appropriated by Alaska's congressional delegation, but the outlook for additional federal funding is not good. The citizens of Kenai approved a G.O. bond proposition in the amount of 2,000,000 in 2007. Given the State of Alaska's ,present financial condition the opportunity to recieve :funding is as good as it has been in some years. A grant application for this project has been submitted under the State of Alaska, Department of Environmental Conservation (ADEC) Municipal matching Grant Program (MMG). We have recxeived the scoring and this project Chas scored well enough to probably be included in the Governor's FY 2012 capital budget The City Council passed Resolution No. 2012 -46 identifying this project as the number one ADEC MMG priority. Administration recommends that a project of this type be perpetually included in capital project requests to the State of Alaska REQUIRED FUNDING 00 S DESCRIPTION Approximately one-mile of the bluff along the Kenai River is exhibiting substantial erosion. Several hundred feet of the original townsite have been lost over the last century. The U.S. Corp of Engineers estimates the rate of erosion to be 3 feet per year Over the next 50 years, in excess of 50 million (in 2006 dollars) of property and improvements will be lost, without the construction of stabilization improvements. The total cost estimate for the project is 20 million. Approximately 1.5 million has been spent to date on preliminary engineering studies. Kenai voters approved a 2 million bond sale at the October 2007 election. Recently the Kenai Peninsula Borough Assembly passed a resolution to provide the quarry rock for the project al no cost. The value of the rock is estimated at 4.8 million. Total funding in -hand and in -kind is approximately 10.2 million. 1. Replace approximately 3,200 i1 of asbestos cement (AC) water main which is presently the sole connection from the City's water production facilities and the distribution grid. Any failure of the AC piping would constitute a catastrophic failure !of the City of Kenai's municipal water supply utility. 2. Construction of 2,500 If of new water main along Swires Road between the Kenai Spur Highway Lawton Drive- This will provide a cross connec tion between an existing water transmission main and the new water transmission main being constructed on Lawton Drive. These improvements will increase system reliance, and increase both operating pressures and flow volumes. The City of Kenai maintains approximately 20 miles of gravel surfaced roadways within it's municipal boundaries. The cost of maintenance of gravel roadways is high, dust from gravel roadways is a health issue for the elderly young. ilia 103FOUd Kenai River Bluff Erosion /Stabilization New Water Transmission mains (Phase 111) Paving Improvements to City Streets PRIORITY NUMBER N M w cr 0 cc O E 12 cc LLI CC c r° CL ct I I NOTES /COMMENTS Shop facilities to support operations and maintenance activities are always difficult projects to move forward. The present facility was never designed to facilitate the support manitenance activities which are being accomplished. There may be an opportunity for Federal participation, specifically FAA funding in an amount comensurate with Airport use of the facility. This project could also be a candidate for the DOE competitive grant program. In a recent candidates forum Governor Parnell stated that his administration is willing to invest State resources to mitigate the imact of the personal use fishery on the City of Kenai and the Kenai Peninsula. REQUIRED FUNDING 00000'0 oo 000b07 3 300,000.00 DESCRIPTION This project would construct a 20,000 sf maintenance shop to replace the existing shop. The exsiting shop is a collection of buildings and conks that lacks the room to perform maintenance on the City's equipment fleet, and also lacks engineered ventilation systems as well as other improvements found in designed facilities. This project would construct a six -bay vehicle storage facility at the City maintenance yard. At present the vehicles are stored outside the center. During the winter this results in vehicles running to maintain heat for trips for the senior clients, and also results in increased mechanical difficulties. The current system does not provide uniform heat in the winter and does not include air conditioning (cooling) in the summer. The present system also does not provide an adequate number of air changes to meet current code requirements. The copy room which contains the computer servers is consistently at a significantly elevated temperature. Improvements would include the removaVreplacement of the exterior building panels, replacement/addition of insulation in the wails and roof, removal and replacement of the roof mounted air handling system with a ground -level HVAC /air handling system, and replacement of the existing roof. This project would construct three Fish Cleaningtwaste Transfer Enforcement/Data Collection Stations. The three stations would be located at the North Beach, South Beach, and City Boat Launch. PROJECT TITLE MEINIMIll Construct New City Light/Heavy Equipment Maintenance Shop 4 Vehicle Storage Facility for Kenai Senior Center Vehicles 5 City Hall HVAC Energy Conservation Improvements 6 r Capital Improvements to Support State Personal Use Fishery 7 PRIORITY NUMBER co cn Lci cc cn CI_ co 2 cc CC 0 CL LLJ CL 0 0 5 NOTES /COMMENTS This is the first phase of a three phase project to construct improvements to the WWTP ans identified in the WWTP Master Plan prepared by CH2MHiil in 2003. I am not aware of any sources of funding that are available for this project, and several regulatory agencies (EPA, USDF &W) have expressed significant opposition to the project. ONIONO3 0311Ir103H _Go Bonitos 00 000'008' 1 00 DESCRIPTION This project would replace the major components of the healing ventilation system, replace wall coverings, replace/increase insulation in exterior walls and ceiling, replace the existing roof, and construct a new entrance. This project would construct improvements to the City of Kenai s WWTP which would increase volume, decrease expenses and increase the quality of the effluent. This project would construct a pedestrian pathway from the Kenai Spur Highway to Kalitornsky Beach Road along Bridge Access Road. This area is heavily traveled by pedestrians, sight seer's, bicyclists, etc. This project is approximately 2 miles long and would complete the 24 mile Unity Trail that connects Kenai and Soldotna, along both the Spur Highway and Kalifornsky Beach Road. PROJECT TITLE City of Kenai Recreation Center Energy Upgrades/Improvements City of Kenai Wastewater Treatment Plant Upgrades Renovations Bridge Access Road, Pedestrian Pathway PRIORITY NUMBER CO CI Ir. u4 cc cc a. L e l o 2 cc cc z cc ELI ft cc c 8