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HomeMy WebLinkAboutResolution No. 2011-56he u!y of KENAI, ALASKA CITY OF KENAI RESOLUTION NO. 2011 -56 Suggested by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING THE TERMS AND CONDITIONS OF THE WATER TREATMENT UPGRADES GRANT OFFER AND RESPONSIBILITY TO OPERATE AND MAINTAIN THE WATER UTILITY IMPROVEMENTS. WHEREAS, the City of Kenai through the State of Alaska, Department of Environmental Conservation requested grant funding for the New Water Treatment Facility, and Related Improvements; and, WHEREAS, in 2010 the City of Kenai through State of Alaska, Department of Environmental Conservation received a $945,000 appropriation for "New Water Transmission Mains (Phase II), Wellhouse; and, WHEREAS, in 2009 the City of Kenai through State of Alaska, Department of Environmental Conservation received a $2,070.100 appropriation for "New Water Transmission Mains (phase II), Wellhouse"; and, WHEREAS, in 2009 the City of Kenai through State of Alaska, Department of Environmental Conservation received a $627,000 appropriation for "Water Treatment Plant Upgrades Phase IIP; and, WHEREAS, these three appropriations have been combined into one grant offer titled "Water Treatment Upgrades (MMG #47550); and, WHEREAS, the improvements will provide increased volumes of drinking water meeting the EPA water quality standards; and, WHEREAS, the grant requires that City of Kenai accept responsibility to operate and maintain the proposed water utility improvements and agree to the terms and conditions of this grant. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the following budget transfers be made: PASSED BY THE COUNCIL OF THE CITY FI, LAS ,O , this 20th day of July, 2011. PAT PORTER, MAYOR ATTEST: Corene Hall, Deputy City Cleft Approved by Finance: 7 DEPT. OF ENVIRONMENTAL CONSERVATION DIVISION OF WATER DIRECTOR'S OFFICE Mr. Rick Koch City Manager City of Kenai. 210 Fidalgo Avenue Kenai, AK 99611 Dear Mr. Koch: /' SEANPARNELL, GOVERNOR 555 Cordova Street Anchorage, AK 99501 PHONE: (907) 269 -7502 FAX: (907) 269 -7509 http: / /www.state.ak.us /dec http: / /www. dec.state. ak.us May 10, 2011 Grant Offer: Water Treatment Upgrades (MMG #47550) GV OFt Received 194y) 6201f 9�?iini In accordance with AS 46.03.030, the Department of Environmental Conservation (Department) is pleased to offer the City of Kenai (Grantee) a grant of funds not to exceed $3,642,000 This grant will finance the engineering and construction of a new water treatment facility including treatment and supply piping systems, storage reservoir, sewer main connection for backwash, drilling a new production well, upgrading well controls, decommissioning old wells contaminated with arsenic, providing a standby generator, and other related work needed to address Kenai s arsenic issue and make the water system fully functional and ADEC /EPA compliant. Estimated eligible costs for this project are $5,202,857. The total grant for this project is limited to 70 percent of eligible costs pursuant to AS 46.03.030(e) This grant, which will be administered by the Department, represents a combination of the state fiscal year 2009 appropriation (SB #75) for the project entitled New Water Transmission Main (Ph. II) Wellhouse in the amount of $945,000 and the state fiscal year 2010 appropriation (SB #221 and SB #303) for projects entitled Water Treatment Plant Upgrades, Phase III for $627,000 and New Water Transmissoin Mains (Phase II) Wellhouse for $2,070,000. This offer is expressly conditioned upon the Grantee accepting the offer and agreeing to comply with the terms and limitations contained herein, in 2 AAC 45.010 (enclosed), in 18 AAC 73 (enclosed), and is based upon estimated eligible project costs as itemized below: Total Estimated Eligible Project Costs 1. Administrative $32,686 2. Design 30,000 3. Const., Engineering and Management 350,000 City of Kenai MMG047550 Page 2 of 5 4. Construction 4,250,000 5. Contingencies 540,171 6. Total Estimated Eligible Costs 5,202,857 7. State Grant 3,642,000 Adjustment of expenditures within the budgeted cost items is allowed, however, if actual project costs exceed the total estimated eligible costs, a revised grant application must be submitted before additional funding can be committed. If actual project costs are less than the estimated costs, the grant will be reduced to the extent necessary to comply with the percentage limitation set forth in this offer. Grant payments will be made when expenses have been incurred and documentation has been provided to the Department along with the payment request folio, unless a payment schedule is established as a special condition of this grant. Payments will normally be made monthly, but no more frequently than twice per month. All requests for payment must be submitted on the enclosed Request for Payment folio. GENERAL GRANT CONDITIONS Plan Approval: The Grantee agrees to obtain plan and specification approval from the Department in accordance with 18 AAC 73.020 prior to issuing a Notice to Proceed with Construction to a contractor. 2. Contract Award and Contractor Bonding Requirements: a. The Grantee agrees to bid construction contracts exceeding $50,000. Adequate time (not less than 30 days) shall be allowed between the date of formal advertisement and the date the bids must be submitted. b. The Grantee agrees to submit procedures for award of construction contracts of less than $50,000 to the Department for prior approval when means other than the competitive bidding process are proposed. c. The Grantee must require the contractor to furnish performance and payment bonds in accordance with AS 36.25.010. d. If local or federal ordinances or regulations also apply to the contract award or contractor bonding requirements for this project, the most stringent requirements shall apply. e. The Grantee agrees to provide the Department with a summary of itemized bid tabulations, a copy of the Notice to Proceed, and a copy of the construction contract. City of Kenai MMG#47550 Page 3 of 5 3. Change Orders: The Grantee agrees that all project change orders will be submitted to the Department for approval in accordance with 18 AAC 73.020(e). 4. Project Completion: The Grantee agrees to provide sufficient local funding to match State and federal grant assistance and to ensure the completion of a properly functioning project in accordance with 18 AAC 73.0200). 5. Operation and Maintenance: The Grantee agrees to operate and maintain the completed project. 6. Tiles and Easements: the Grantee agrees to obtain all titles and easements necessary to provide clear title or authority to construct and maintain the proposed project. 7. Eligibility: The Grantee acknowledges that disbursement of progress payments by the State does not constitute acceptance of any item as an eligible project cost until all project costs are audited and determined to be eligible. Ineligible project costs must be included in the final audit report. 8. Inspection: The Grantee agrees to allow, at any reasonable time, Department inspection of all project work and audit of related records and data for which this grant is offered. 9. Records: The Grantee agrees to maintain project accounts and records which verify the grant eligibility of project expenditures. These accounts and records shall be kept apart from non -grant eligible local records and from those records maintained for the purpose of other State or federal grant programs involved in the project. 10. Progress Reports: The Grantee agrees to submit periodic progress reports on the proposed project with each payment request. 11. Americans with Disabilities Act: The Grantee must certify that projects and services provided under this grant are made available to the general public in compliance with the Americans with Disabilities Act of 1990. 12. Discrimination: The Grantee agrees to administer this grant in a non- discriminatory manner. No person shall be discriminated against based on race, religion, color, national origin, gender or disability. 13. Damages: The Grantee shall hold and save the Department, its officers, agents, and employees harmless from liability of any kind, including costs and expenses, for or on account of any and all suits or damages of any nature, sustained by any person or persons or property, by virtue of perfoi mance of the grantee, or any person or entity acting in place of or for the Grantee for this project. City of Kenai MMG #47550 Page 4 of 5 14. Grant Cancellation: The Grantee acknowledges the right of the Department to rescind this grant and seek recovery of payments already made if the Grantee has provided incorrect or misleading infoi oration to the Department or if a grant condition contained herein or in 18 AAC 73 is violated. This grant offer may be terminated at any time it is in the best interest of the State to do so. SPECIAL GRANT CONDITIONS For purposes of eligibility, July 1, 2009 is the effective date of this grant. Please carefully review this grant offer, the related grant conditions, and the enclosed regulations. If satisfactory, sign and return the original, along with a formal resolution accepting the grant enacted by the Kenai City Council. In the resolution the Grantee must agree to accept responsibility to operate and maintain the proposed water utility improvements and agree to the tei ins and conditions of this grant offer. Acceptance of the grant is required within six months to prevent revocation of the offer. No progress payments can be made until this grant offer is signed by the Grantee and returned to the Department. Nothing in this offer, whether or not accepted, may be deemed to constitute a contractual obligation on the part of the Department until a resolution of acceptance has been received. The Department is pleased to offer this assistance to the people of Kenai. wbincet ei , Lynn J. Tomich Kent Director Enclosures: 2 AAC 45.010 18 AAC 73.010 Construction Grant Project Eligibility Request for Payment cc: Senator Thomas Wagoner Representative Kurt Olson Representative Mike Chenault Accepted on behalf of the SICK KOCH CT! Mrrnt`AGEI (4 / by: c -15 -LO City of Kenai MMG#47550 Page 5 of 5 the cu y of KENAI, ALASKA 'Village with a Past, Ci y with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283 -7535, Ext. 236 / FAX: (907) 283 -3014 tlllll 1992 MEMO '' • NDUM TO: Rick Koch, City Manager FROM: Kevin Lyon, Capital Projects Manager DATE: July 13, 2011 SUBJECT: RESOLUTION 2011 -56 ACCEPTING THE TERMS AND CONDITIONS OF THE WATER TREATMENT UPGRADES GRANT OFFER AND RESPONSIBILITY TO OPERATE AND MAINTAIN THE WATER UTILITY IMPROVEMENTS. Rick, This grant offer is for the Kenai Water Treatment Building and associated system upgrades. These grants have previously been accepted and appropriated. The Department of Environmental Conservation combined these grants to simplify the reporting process. This resolution is required to meet the grant offer requirements. Attachment: Grant Offer (5 pages)