HomeMy WebLinkAboutResolution No. 2011-71he aty of
11 NAL ALASKA
Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 2011 -71
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A
CONTRACT TO NELSON ENGINEERING FOR PROFESSIONAL DESIGN AND
ENGINEERING SERVICES FOR THE KENAI INDUSTRIAL PARK.
WHEREAS, the City of Kenai has identified economic development as a priority; and,
WHEREAS, the City of Kenai identified the construction of an industrial park in
proximity to the Kenai Municipal Airport as a priority capital funding request to the
Alaska Legislature; and,
WHEREAS, the State of Alaska appropriated a grant in the amount of $761,650 to the
City of Kenai for the design and construction of Phase I of the Kenai Industrial Park;
and,
WHEREAS, Nelson Engineering has successfully performed similar work for the City in
the past, negotiations have resulted in defining the scope of work, and the City
Manager has determined the price proposal of $149,925 is fair and reasonable.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that a contract to provide professional design and construction
administration services is awarded to Nelson Engineering for the Kenai Industrial Park
for the amount of $149,925.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of
October, 2011.
PAT PORTER, MAYOR
Corene Hall, Deputy City Clerk
Approved by Finance:
\then
KENAI, ; S
"Village with a Past, Gc with a Future"
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 t
Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 I I I II l
MEMO:
TO: City Council
/jit FROM: Rick Koch
DATE: October 14, 2011
SUBJECT: Resolution 2011 -71, Kenai Industrial Park
The purpose of this correspondence is to recommend Council approval of the above referenced
resolution.
The effect of this approval will be for the City to enter into a professional services agreement
with Nelson Engineering to provide design and administration services for the construction of
the Kenai Industrial Park (Phase I). These improvements include but are not limited to the
following:
1. Conceptual lay -out
2. Wetlands delineation
3. Survey & subdivision
4. Roadway construction (gravel surfaced)
5. Utilities
a. Water
b. Sewer
c. Natural gas
d. Electricity
e. Communication
The City received $761, 650 for this economic development project through a Legislative
Appropriation during the 2011 Legislature.
1992
The summary budget for the project is as follows:
Survey & Platting $ 41,365
Design & Geotechnical Investigation 48,060 (7.86% of construction)
Construction Administration 60,500 (9.98% of construction)
Construction 611,725
Total $ 761,659
I have reviewed the proposed scope of services and the corresponding price proposal. I find the
scope to be inclusive and the price proposal to be fair and reasonable.
Thank you for your attention in this matter, if you have any questions please contact me at your
convenience.
attachments
NELSON
ENGINEERING
September 2, 2011
CONSULTING ENGINEERS
155 BIDARKA STREET
(907) 283 -3583
Rick Koch, PE, City Manager
City of Kenai
210 Fidalgo Avenue
Kenai, Alaska 99611
STRUCTURAL CIVIL ENVIRONMENTAL
KENAI, ALASKA 99611
FAX (907) 283 -4514
RE: Kenai Industrial Park - Engineering Proposal
Dear Mr. Koch,
My proposal to provide professional engineering services for the Kenai Industrial Park is attached.
Project Description
The City is planning to create an Industrial Park subdivision on City -owned land along Marathon Road,
KPB Parcel # 04501029. The property is irregular shaped and includes some wetland areas.
Scope of Work
Our work will include subdividing the property into individual lots along with design and construction
contract administration /inspection for road, water and sewer improvements. I will retain a surveying firm
to perform design topo, and subdivision surveying, lot staking and platting. We will also have a consultant
provide wetlands delineation.
Design
Design will consist of performing a geotechnical investigation, topographic survey and subdivision
platting. The geotechnical investigation will consist of excavating test pits to depths of 10 feet along the
proposed route of the road centerline. Test pits will be logged. The topographic survey will be used to
determine existing drainage patterns. The topographic survey will record existing street pavement,
poles, pedestals mailboxes, driveways, signs, water and sewer utilities, location of underground utilities
(gas, telephone, power, CATV) and location /elevations. We will prepare base maps showing the
topographic information along with property lines. Maps will be prepared on 22 "x 34" plan and profile
sheets at a scale of 1" = 30' horizontal and 1" = 5' vertical.
Preliminary subdivision design concepts will be presented to the City for review. We will revise the
drawings to include comments by the City. Drawings and specifications will be prepared suitable for
competitively bidding the project.
Wetlands Determination
There are two levels of wetlands determination that are available.
A Preliminary Wetland /Upland Boundary Determination can be accomplished by having the Biologist visit
the site and dig representative test pits in wetland and upland areas The Biologist would then stake the
approximate location of the wetland boundary based on data from a limited number of test pits. Future
development of individual lots would require an individual Jurisdictional Determination by the Corps of
Engineers to confirm the precise location of the wetland boundary.
An Approved Jurisdictional Determination would require a more extensive field investigation by the
Biologist and would require submittal of data sheets and wetland boundary mapping to the Corps for
approval. If an Approved Jurisdictional Determination is made, development of individual lots could
proceed in upland areas with confidence regarding the location of the wetland boundary. One significant
limitation to this option is that the approved boundary determination is only valid for five years after the
Kenai Industrial Park
Page 2 of 2
data of approval by the Corps. Development after five years would require a new Jurisdictional
Determination for each lot.
The cost of obtaining an Approved Jurisdictional Determination is estimated to be about double the cost
of determining the preliminary wetland /upland boundary. Since the Approved Jurisdictional Determination
is only valid for five years, we are proposing to include only the Preliminary Wetland /Upland Boundary
Determination on the plat.
Construction Contract Administration and Inspection
We will provide construction contract administration services from bidding phase through completion of
construction. Our services will include full time project inspection to verify that the project is constructed
in accordance with the contract documents and design intent.
Team Members
I have selected the following consultants assist in completing this project for the City:
Firm Task
McLane Consulting Group Topo survey /Subdivision Platting
Taiga Ecological Services Wetlands Delineation
Schedule
We will prepare a the preliminary plat this fall and continue through the platting process so that the final
pat can be recorded by June , 2012. The water, sewer and road design will also be initiated this fall so
that the construction can be bid in March 2012, for construction during summer 2012.
Fee
I propose to perform the engineering services for the design and inspection for a not to exceed fee of
$149,925. A breakdown of proposed services is included in the attached spreadsheet.
Insurance
Our firm currently maintains $1,000,000 professional liability insurance.
Sincerely,
Wm. J. Nelson, PE
Kenai Industrial Par
Nelson Engineering, PC
Kate /1
$155
.olect Management
24
Design survey
Boundary Retracement
Preliminary Plat
Lot Staking
Final Plat
Preliminary Wetlands Delineation
Geotechnical Investigation
Phase 1 Water/Sewer /Roads 600'
Phase 2 Water /Sewer /Roads 1400'
Phase 3 Water /Sewer /Roads 800
ADEC Approval to Construct
Contract Docs/Drawings /Specs
4
28
24
8
8
$130 $105 $90 $90
$6,411
$2,062
$5,300
$7,036
$4,850
88,000
633,659
4
24
7
40
x ense subtota
$3,000 Excavator & Lab
40
80
60
20 0 0 $3.000 Expense subtotal
Phase
Inspection/Admin
80
160
Submittals/DCR's
Testing (Compaction)
ADEC Approval to Operate
8
$750
Phase 2
Inspection/Admin
Submittals/DCR's
Testing (Compaction)
ADEC Approval to Operate
40
80
$750
Phase 3
Inspection/Admin
Submittals/DCR's
Testing (Compaction)
40
80
ADEC Approval to Operate
8
$500
4
36
184
320 $2,000 Expense suhtota
$38,659
Total Fee
E. enses W/ marku,
Total
expenses
$107,400
$42,525
KENAI INDUSTRIAL PARK
COST ESTIMATE
10/14/2011
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 -Tot& $ 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 $ 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 !
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 of2
KENAI INDUSTRIAL PARK
COST ESTIMATE
10/14/2011
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 LF 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 11 Utility Construction $ 474,000.00
Phase 111 Utility Construction $ 444,000.00
Total $ 3,179,650.00
Page 2 of2
KENAI, ALASKA
"Village with a Past, Gc with a Future"
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 / Fax: 907 - 283 -3014
www.ci.kenai.ak.us
KENAI INDUSTRIAL PARK
The proposed Kenai Industrial Park is located on Marathon Road within Y4 mile of the Kenai
Municipal Airport. There is an increasing need for an industrial /heavy commercial center in near
proximity to the airport to support the growing level of activity related to west -side Cook Inlet
developments, such as Pebble Mine, Chuitna Coal, geothermal exploration, and the proposed
Cook Inlet jack -up rig(s). Air freight activities at Kenai Municipal Airport, which service many
southwest Alaska Communities, have increased each of the past five years. Fuel and groceries
are the primary commodities being flown from the Kenai Municipal Airport.
With the decrease in employment opportunities as a result of the closure of Agrium several
years ago, and most recently the ConocoPhillips LNG Plant, the development of an industrial
park will provide needed opportunities on the Kenai Peninsula.
Buccaneer Alaska Operations, LLC (BAO) is presently drilling a natural gas production well on
one of the lots in the proposed industrial park subdivision. The access road constructed by BAO
will provide access to the first four lots in the industrial park.
This project will accomplish the design /permitting, subdivision, construction of access roads,
and extension of utilities (water, sewer, electricity, natural gas, telephone, telecommunications)
to five lots. Subsequent phases will develop an additional 14 lots. Lot sizes are proposed to
range from 1 acre to 3.5 acres.
The total cost for the Phase I Development, including value /purchase of property is $2,261,650.
The City of Kenai respectfully requests an appropriation of $761,650 (33.7 %) of the project
costs.
KENAI, ALASKA
March 5, 2011
Governor Sean Parnell
Senator Donald Olson, Fin
Senator Johnny Ellis, Fin.
Rep. Bill Stoltze, Fin.
Rep. Bryce Edgmon, Fin.
Rep. Tammie Wilson, Fin.
Rep. Les Gara, Fin.
Randy Ruaro, Gov. Off.
°Village with a Past, C with a Future"
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 / Fax: 907 - 283 -3014
www.ci.kenai.ak.us
Senator Bert Stedman, Fin.
Senator Dennis Egan, Fin.
Senator Lesil McGuire, Fin.
Rep. Bill Thomas, Fin.
Rep. Reggie Joule, Fin.
Rep. Mia Costello, Fin.
Rep. Mike Doogan, Fin.
Senator Lyman Hoffman, Fin.
Senator Joe Thomas, Fin.
Speaker Mike Chenault
Rep. Anna Fairclough, Fin.
Rep. Mark Neuman, Fin.
Rep. David Guttenberg, Fin.
Karen Rehfeld, Dir. OMB
Subject: City of Kenai, Capital Funding Requests
Dear:
Thank you in advance for your time and consideration of the City of Kenai's requests.
The purpose of this correspondence is to provide information and justification for the projects
which have been determined to be priorities by the Kenai City Council.
On September 28, 2010 the Kenai City Council, by Resolution No. 2010 -57 adopted the State
and Federal Capital Funding Priority List for SFY12 and FFY13. Since adoption of the
Resolution circumstances have changed regarding certain priorities. For example, the City of
Kenai has applied for funding for energy upgrades to five City facilities through the State of
Alaska loan program being administered through AHFC; therefore two of the City's priority
projects are already being addressed.
The following are six projects for which the City of Kenai would respectfully request your
support:
1. Kenai River Bluff Erosion /Stabilization - $1,750,000
2. New water Transmission Mains, Phase III - $1,603,710
3. Paving Improvements to City Streets - $1,000,000
4. Kenai Senior Center Vehicle Storage - $400,000
5. Capital Improvements to Support State Personal Use Fishery - $300,000
6. Kenai Industrial Park - $761,650
A brief summary of the above six capital projects follows:
KENAI RIVER BLUFF STABILIZATION
Requested State Appropriation - $1,750,000
This has been Kenai's number one priority project for over 10 years. The US Corps of
Engineers (COE) has expended over $2.5 million in Federal appropriations for pre- design,
project feasibility, economic analysis, and environmental documentation. The cost estimate is
approximately $30 million and the City of Kenai has approximately $10.6 million in -hand
(including previous State appropriations of $2.25 million). With an additional State appropriation
of $1.75 million the local share (35 %) will be met. The COE is finalizing NEPA documentation in
anticipation of Federal funding.
NEW WATER TRANSMISSION MAINS, PHASE III
Requested State Appropriation - $1,603,710
This project is included in the Governor's Capital Budget. The City of Kenai applied through the
Alaska Department of Conservation (ADEC) competitive Municipal Matching Grant (MMG)
program. This project replaces an aging transmission main which is critical to the City's water
utility, and constructs a connection between transmission mains providing system redundancy.
PAVING IMPROVEMENTS TO CITY STREETS
Requested State Appropriation $1,000,000
The City maintains over twenty miles of gravel surfaced roadways. The cost of maintenance is
high and there are health issues with elderly and young from exposure to dust.
KENAI SENIOR CENTER VEHICLE STORAGE
Requested State Appropriation - $400,000
The Kenai Senior Center provides over 50,000 home delivered and congregate housing meals
each year (mostly delivered), and also provides transportation services for seniors. The Kenai
Senior Center Service Area is significantly greater than the corporate boundaries of the City. We
serve Clam Gulch, Kasilof, Kalifornsky Beach, Salamatof, and all areas in- between. This project
would provide inside, heated storage for six vehicles (2 buses, 4 food delivery vans). This would
increase efficiency by eliminating warm -up throughout the winter and reduce maintenance
costs.
CAPITAL IMPROVEMENTS TO SUPPORT STATE PERSONAL USE FISHERY
Requested State Appropriation - $300,000
In 2010 400,000 sockeye salmon were harvested through the personal use fishery at the mouth
of the Kenai River. Daily participant levels are estimated at 12,000- 14,000 on weekends.
Generally, fish are cleaned on the shore of the river and fish waste is tossed into the river where
it is in short order deposited at the tide line. This volume of fish waste lying on the beach is not
only unsightly and unpleasant, but it attracts large numbers of warm blooded animals (primarily
birds, but also bears and seals), and the fecal matter from the warm blooded animals creates
levels of etroccoci and coliform bacteria near -shore in the Kenai River which exceed EPA water -
quality standards. Last year we were contacted by ADEC asking if the City was considering
restricting access to the beach, or taking other enforcement actions. This project would
construct three mobile fish cleaning stations (north beach, south beach, and boat launch). With
an alternative for personal use fishery participants the City would enforce an existing no- littering
ordinance and require the use of the fish cleaning stations.
KENAI INDUSTRIAL PARK
Requested State Appropriation - $761,650
The Kenai Municipal Airport is experiencing growth in cargo and support industries. There is a
lack of developed industrial /heavy commercial land in near proximity to the airport. Buccaneer
Alaska Operations, LLC has recently entered into an agreement with the City to construct an
access road and drill pad for a natural gas production well. The access road is located in a
manner to be able to be used as a component of the proposed industrial park. There are many
West Cook Inlet projects in the development stages which will require significant support
facilities near the Kenai Municipal Airport.
The Kenai City Council and Administration appreciates your time and consideration of these
requests. If you, or your staff, have any questions, please contact me at your convenience.
Sincerely
CITY OF KENAI
Rick R. Koch
City Manager
KENAI, ALASKA
October 1, 2011
"Villaye with a Past, Gc with a Ftitw'e
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 / Fax: 907 - 283 -3014
www.ci.kenai.ak.us
Nancy Pierce, Grants Administrator Il.
State of Alaska
Department of Commerce, Community & Econo
Division of Community & Regional Affairs
P.O. Box 110809
Juneau, AK 99811 -0809
c Development
Subject: Kenai hldustrial Park Development
Dear Ms. Pierce:
The purpose of this correspondence is to reply to your letter dated July 22, 2011 addressed to
Mayor Pat Porter.
Attached please find a projected budget for the project. A brief project description follows:
"Project will create an industrial park subdivision, the scope of work will include engineering,
surveying, construction of roadways utilities and related improvements."
Contact Information: Rick Koch, City Manager
210 Fidalgo Avenue
Kenai, AK 99611
(907)283 -8222 office
(907)398 -0190 cell
(907)283 -3014 fax
rko ch6i ci. kenai. ak. us
Thank you for your attention in this matter.
Sincerely,
CITY OF KENAI
Rick R. Koch
City Manager