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1995-04-12-5-10 Council Packet - Budget Work Session
Kenai C i ty Counc i I Work Session Apri I 12, .1995 April 26, 1995 May 12, 1995 Budget MEMORANDUM TO: FROM: ALL CONCERNED Carol L. Freas, City Clerk DATE: April 7, 1995 RE: BUDGET WORK SESSION WEDNESDAY, APRIL 12, 1995 At their April 5, 1995 meeting, the Kenai City Council scheduled their first budget work session for Wednesday, April 12, 1995. The work session will be held at the Kenai Senior Center and will begin at 7:00 p.m. If you have any information, other than the budget and budget memorandum which has already been distributed to Council, please fonvard it to me by 2:00 p.m. on Monday, April 10, 1995. Copies of that information will then be made for Council and distributed to them prior to the work session in order that they have time to review it. Your cooperation is appreciated. elf MEMORANDUM TO: FROM: DATE: RE: Mayor and Councilmembers Carol L. Freas, Ci.ty Clerk City of Kenai ~k/, /] April 10, 1995 ~/ CLERK BUDGET 1995-96 In my 1995-96 budget I have included an estimated cost of $25,000 for a Document Imaging System and $4,000 for Document Imaging Software. The amount estimated would cover the initial purchase of a networked Document Imaging System for use by two/three departments. The System would have the ability to add additional departments in the years ahead. The City of Kenai has boxes and boxes of records stored, both in City Hall in other buildings. This is a relatively new technology that can eliminate adding boxes and boxes of records in the furore. Because I am not an expert on the matter, I ordered a copy of The Local Government Guide to Imaging Systems: Planning and Implementation and have attached copies of some of the information which better defines what the system is and what it does. This publication has a lot of additional information in it as well, and if you would like more of the publication copied, please let me know. I have also discussed the possibility of placing such a system in the City of Kenai with Financial Systems Products Corporation in Anchorage. This company is who the City of Homer and Homer Electric Association, Inc. planned, purchased and implemented their imaging programs. Additionally, I have attached a copy of an article from the Journal of Accountancy entitled, "Setting Up a Paperless Office." Both this article and the above-mentioned review suggest taking time in selecting the type of imaging system best suited for your needs. That is why I have estimated the cost for the system in my budget. The determination of the type of system, etc. would take place in the following months through a survey to determine need, discussions with Council and Administration, etc. ) clf Chapter 1 lntrodudion Despite the growing quantity of data that exists today in electronic form, paper remains the dominant medium by which local govern- ments store and process information. In fact, governments and busi- nesses store a very small percentage of their information on computers, microfilm or magnetic tapes, according to the Association for Infor- mation and Image Management (AIIM). Those figures are beginning to change--and with good reason. Imaging technology is making its way into every level of local govern- ment, converting paper documents into electronic images that com- puters can store, retrieve, display and disseminate far faster and better than any human being, changing forever the way work is processed. The change may unleash significant benefits for cities and counties in productivity and cost savings. More important, imaging can invigorate services by making information accessible to citizens as never before. The importance of imaging to local governments cannot be over- stated. Cities and counties still maintain 90 percent of their informa- tion in paper documents, according to some estimates. Much of this information originates outside of local government, making it hard to control how the information is captured and formatted. Think of the land records and titles that individuals and lawyers file every day. Or the birth and death certificates submitted by hospitals and doctors, and the numerous tax filings from individuals and businesses. Then the building permits from contractors and licenses from hunters that pour in daily. The list goes on. Little, if any, of the information is submitted electronically to local governments. What information is submitted on paper can be handwritten or typewritten in dozens of different ways. With no controls, local governments have few choices about how to manage their documents efficiently. As a result, cities and counties must budget precious tax dollars for space and labor to manually store, retrieve and process the paper documents. In fact, a large percentage of government resources are expended on tasks, such as filing and storing, that add no value whatsoever to the information on the paper. With imaging, however, cities and counties have .a tool that can tame the paper beast, allowing departments to devote more time to urgent problems and derive more value from the information con- tained in documents. The use of imaging in government grows every , The Local Government Guide to Imaging Systems day. With proper planning, departments are succeeding in turning back the tide of paper, slashing costs, boosting efficiency and even earning revenue. Key hardware components of an imaging system include the server, which handles software and databases; the desktop computer, for viewing the images and performing computing tasks; and the optical jukebox, for storing and accessing the optical disk platters that contain the document images. Numbers and Pressures In recent years, the quantity and cost of paper documents produced, received and managed by local government have risen considerably. Consider these facts: · Each working day it is estimated that more than a billion paper documents are generated in the United States alone.~ · Some three percent of this total is misfiled? costing an average of $140-$200 per document to recover. · The number of paper documents produced annually in the U.S. is expected to reach 1.6 trillion by 1996.~ · The cost of floor space has gone up 300 percent in the last decade.4 For city and county governments, with cash-strapped budgets, the idea of committing an ever-increasing amount of resources to store and manage paper documents is becoming unacceptable. Another concern with paper-based documents is their impact on public service. Retrieving paper documents is a slow process. In the past, waiting hours, days or even weeks to receive a copy of a public document used to be the accepted norm in doing business with gov- ernment. But today, that's no longer the case. Taxpayers, as custom- ers, have come to expect rapid service response. Because of automation and other improvements in the private sector, including toll-free ser- vice numbers, fax and over- night delivery, individuals are no longer willing to wait very long for a service to be ren- dered. As a result, local governments are under in- creasing pressure from busi- nesses and citizens to become more responsive. Imaging Definition The technology for managing local government documents has, until recently, only inched forward. For many years, leather-bound volumes and filing cabinets were the stan- dard tools for document stor- age. Micrographics, which has been around for decades as Introduction 3 microfilm and microfiche, expanded the quantity of paper documents a local government could store and lowered storage costs. Micro- graphics is still used extensively in government today. (See "Micro- graphics," Chapter 4.) In the 1980s, computers and scanners made it possible to create electronic images of pictures and paper. A scanner is a device that "takes a picture" of a document, creating a TV-like matrix of dots called a bitmap. The bitmapped image is quite large when compared to a word processing or spreadsheet file. The image can be stored on magnetic disk in a computer or on an optical disk, using laser tech- nology. Magnetic disks are the primary means of storing data on comput- ers today. They provide fast access and can both store and erase files, but they are a relatively expensive method for managing large quan- tities of data. Optical disks provide a slower but less expensive option for storing data such as document images. One optical disk can hold 40,000 to 100,000 pages of documents. When many disks are mounted in an optical jukebox--a robotic de- vice roughly the size of a refrigerator that can mount and dismount as manY as 100 to 200 disks--they can store the same amount of information as hundreds of four-drawer file cabinets. Because of technology's constant improvements, the number of pages an optical disk can support and the number of disks a jukebox can mount will continue to increase. To the computer, the scanned image of a paper document is a graphic file, which has meaning only to people when they see it on a computer screen. If people are to search for and use the contents of the document image on a computer, the image must either be con- verted into computer-readable data or indexed for easy retrieval. A technology called optical character recognition (OCR) can convert images of letters and numbers into code the computer can read and understand. However, OCR capabilities are limited by the quality of the char- acter images and whether they are typewritten or handwritten. Given these restrictions and the fact that many documents stored by gov- ernment--such as deeds or birth certificates--must retain their origi- nal format, most scanned documents are saved as images, checked for quality and indexed by a computer operator using key fields be- fore they are stored. The index allows the user to find the document image quickly. Software links the individual hardware components~scanner, com- puter, jukebox and printer--and enables users to search, retrieve, view, distribute and print the document image. Today's imaging soft- ware is designed to operate across a network of computers, so that offices, departments and even entire organizations, or enterprises, can share and access document images. The software also enables the images to be integrated into an existing computer system. This means, for example, that a main- frame computer with an existing database of birth and death infor- mation can be linked with images of the actual birth and death The Local Government Guide to Imaging Systems certificates. Should an individual request a copy of a birth certificate, a government worker merely has to search the database for the person's name and, when found, have the software retrieve the certificate image and print out a copy. Technical Issues Information entered into a computer using a word processing, data- base or spreadsheet program can be edited, analyzed and tracked because each character is represented by a computer code called ASCII (American Standard Code for Information Interchange) that responds to commands from the software programs. A document im- age, however, is merely a series of light and~dark pixels, which form a bit-mapped image file. If the image is of a page of text, the computer has no control over the characters that appear in the image. A one-page document in ASCII code takes up about 3,000 bytes or three kilobytes (3K) of storage in a computer. An uncompressed scanned image of the same one-page document can occupy as much as 500,000 bytes or 500K of storage. Even when compression technology is used, the image still occupies a much larger amount of space in a computer's storage system than character-coded text. . . 'The m°¢e~nt aW'~'~r°m 'p~°p-r~iet~ry c~mputersystemS~.~'''' ........ : ..... h'~?:~:.::~r0gressed.~:';:'~.:':~:;:~::~::~ ..................... ' ........... ' - , over '~e past several years in response m customer demandS~/'for inter-' Changeable hardware~ .so.are and dau. ~is ongoing:.t~hd;~"~Siex~ ...... emplifi~ by ~e large'?'~n'um~r of choices in personal c~~}~:ters and '"~":"":': so.are programs, is Cail~ open systems. - . in open sysmms, different brands and models of mainframes, mini- compumrs and pe~nal computers and ~eir so.are can share infor- marion. This shift away from single-vendor systems gives:, g°Vernment. managers".fr~om to c.h~~ the most cost~ffective comPUting' strategy.: " that fi~ '~eir depa~'ent's n~S. "'~'~'?:?~. .......... .. ~??'"-' :. · . ..... ... ;: ,~...: ... , -.s:~:..' ~..::.:~:===================== ~&-:~; ......... -' ......",. '."' 7,.. ~e key to open ~s~stems is~andards, Which pr0vi~.e:':.~gmers~:. ................... With ~e latitude to mle~ from a' broad range of hardWare~;~h~ "go~a'm that is interoperable.' Open systems standards prote~ a"'~fi~6mer's i'n2:~'~' vement in .so.are,. h~rdware and training, while alib~ih~?'"~'im~ or her _ ...... to.add enhancementS'as r~uired. Overall, o~n sy~em~.?tan~dards can.- r~uce~'~s~ and provide greater''access to govemment..da~':~liowing' .. i dividuai:'(a'$Pame" : to mil°r~'Computers to ~eir speei~ h~s, While. ~ ?... ...... :.. ~., :".?~m~?Xamples Of standards include the intel micr°Pi6~Sso, r chi'p, :..,..:.,.:.~ .~.:.. ~:. :... . ~ ~e..PC OPiating system' and user'ime~ace MS, DOS a:0~..':.~:~indOws,...and .... the'wor~tion o~rating svstem'called UNIX. 'In imag.!~g~'~'~!he most ' s!gnificantstandards m date am::those for compression :Ofbt~Ck'~and- 'Whi~,gmSCale and.':.:~ior imagesand, for transferring]:~dS'.:~e~~n" -..'di~rent:"g'~hds of im~ging s°~am. ..... "?~":~""::~ ..... ""'~':~.~??~??'? '''~ .... ~ ............... ...... ....... · ':'---....--- ~, . L ..'..::-~'.~ ::, ~:~:..';':.- - . ...... :~"- ~.. ' :, "'.:: :'... :...'-'.':.';~;'" :??:::.::.~.~-:'-" ..... ....:..-: ~.-..':.~:~::::, - ... : . ..:: :.:.:..:.:.:...'~.-. "" .... , .., ... 2:-'.. ':'~:::: .. "~'.:"_- '.-:. · Introduction 5 Because of their size, document images can have a significant impact on a computer system's performance and equipment needs. For example, while everyone with a computer can view a text file on his or her monitor, not everyone can view a document image on his or her computer. In order to do so, the computer must be "image- enabled" so that it can display the image at the required high reso- lution. Users must also consider the technological issues of sharing im- ages. Today's computer networks are designed to transfer the rela- tively small amounts of data that make up word processing, electronic mail and spreadsheet files. Adding large imaging files to a network can slow down data transfer considerably. Existing networks can probably handle a small amount of document image-sharing, but if the imaging application is large or expansion plans are in the wings, the network will have to expand to handle the additional capacity. Big vs. Small When imaging first became available, the technology could only be cost-justified as a large system serving many users. Imaging systems were built to run on mainframes or minicomputers using proprietary hardware and software. Today, an imaging system can consist of just one scanner, one computer, one optical storage device, one printer and one user. Most imaging technology runs on industry-standard personal computers instead of on proprietary systems, and users have the freedom to mix and match the types of hardware and soft- ware they wish to use. While the new open systems method of computing has made im- aging available for applications of all sizes, some imaging programs are better suited for high-end, large-scale applications, while others handle smaller needs much better. As expected, high-end imaging systems offer a much greater range of features and are better suited for complex applications, such as processing medical claims and tax forms, or managing land records and court cases in a busy court. Some of the features included in An image server is the computing workhorse of an imaging system, providing the processing power for everything from scanning and indexing to document retrieval and database management. Large image servers are typica[ly used in high-end imaging systems that have a large range of features and complex applications. 6 The Local Government Guide to Imaging Systems large-scale imaging systems are methods for speeding up the deliv- ery of images from the optical disks to the user's computer, faster printing of images and other performance-enhancing capabilities, such as workflow software that facilitates the routing of electronic docu- ments between personal computers. High-end systems also provide a greater degree of customization than low-end systems. Low-end systems, which can cost several thousand dollars less per user than high-end systems, target simpler problems and smaller workgroups. Typical applications might range from a mayor's or county executive's office correspondence to police reports for a small law enforcement agency. While low-end systems boast fewer features than their high-end counterparts, more vendors sell low-end imaging systems. Imaging at Work in Local Government Imaging technology has been implemented in a variety of depart- ments in city and county government. To date, however, the biggest practitioners of imaging have been those departments with the larg- est record files. Land records offices, vital records divisions, police departments and courts---among the earliest users of imaging--have the longest track record with the technology. Here are a few ex- amples' Land Records Registry offices are ideal users of imaging technology. They receive large quantities of paper documents from the public that must be catalogued, filed and made available for examination. A growing num- ber of land registry offices are implementing imaging to automate the storage and retrieval of documents, provide faster public access and allow outside access to the database of images as a value-added service. 'Imaging Opportunities EXist When: . · Document:. originam ou~ide the organization ...... · AC~ss m paper~"is t~. tim~onsum'ing ~ · Re~ieVal d_iYS..:!imit op~uni~ .. · Physical routing~:intr~uCes processing delays · Transa~ions ~ke a long time . Unavailable docUments :expose organization to ~. · DOCument integrity and:security are important :. · SimuitaneouslaCcess is .important .... ::'- PaPer-based 6~:ration'' is critical to ':'organizatiOn i' !'~! · · :.,' ...... ,.?.?~':~';;i:~":.;:.. '=':" ..... ':' .' ....... ...':7..,~;~7':- .: , . _ .... 7 '-.'- · '":::'!::i!:~.i$ource:Unisys C~oration. '= Introduction 7 In 1989 the Middlesex County, Mass., Registry of Deeds installed an imaging system to automate the 'storage and retrieval of mort- gages, deeds and liens. With all documents filed since 1960 now scanned and saved on optical disks, the Registry can retrieve, display and print the majority of its active documents for homeowners, real estate brokers, bankers, attorneys, title examiners, assessing officers and historians in seconds instead of minutes or hours. The system is designed so that people with modems--devices that allow computers to communicate over telephone lines--can look up documents on the Registry's database from their offices and request the Registry to either mail or fax them a copy of the document. Police Records Increasing criminal activity, as well as state and federal mandates on crime reporting, has forced even the smallest law enforcement agency to divert scarce resources to records management. More problematic is the amount of time officers and investigators must spend waiting for files on active crime cases. With imaging, police departments are reporting the elimination of paper bottlenecks, reduced clerical needs and improved access to police report files. The Stockton, Calif., Police Department used to rely on colored- paper photocopies and pneumatic tubes to distribute active crime reports to its various divisions. The Department estimated that 2,000 hours of clerical time were spent each year chasing down misfiled documents. In 1992, the department installed an imaging sYstem with workflow capabilities. When scanned documents are indexed, clerks are prompted by the system to answer questions about the documents' subject matter. Based on the answers, the imaging sys- tem determines where electronic copies of the report will go, and automatically routes them to the appropriate divisions. Courts and Parking Bureaus Like land registry offices and law enforcement agencies, courts are heavily dependent on paper documents and can benefit from imaging technology. To cost-justify the large investment necessary for imag- ing, some court systems are first implementing the technology where the return is the greatest. Parking enforcement is one such area. Imaging can facilitate the collection of parking fines and offer viola- tors better service if they choose to contest a ticket. Enforcement of Chicago's parking ticket program used to be so lax that the city was able to collect on only 10 percent of its parking tickets. The city's failure to enforce its ticketing program also in- creased traffic and pollution in the city's celebrated downtown Loop district. To remedy the problem, the city took enforcement out of the central traffic court and dispersed it to neighborhood hearing cen- ters. An imaging system was added to scan the more than 12,000 tickets issued daily, as well as correspondence from violators. Each hearing center has imaging workstations that hearing officers use to retrieve and display tickets either for processing or for a hearing when the violation is contested. Since the centers are connected via a computer network that shares the ticket images, violators can visit any center to resolve a problem. The Local Government Guide to Imaging Systems E © N Introduction 9 The Benefits of Imaging The benefits of imaging in local government are as far-reaching as its many uses. Often cited first is the ability to save valuable office space and storage costs by converting large volumes of paper stored in file cabinets into electronic images permanently stored on optical disk platters. Many paper-swamped government agencies have sacrificed valuable working space to store documents. With imaging, they can win back the space to the benefit of their employees. Imaging keeps documents in a secure environment where they can't be misfiled or stolen. The scanned image of a document can be permanently affixed to an optical disk for long-term storage, pro- tected from possible tampering or accidental erasure. Once a document is scanned, it is accessible to anyone on a net- work with a comPuter capable of displaying images. The access can be simultaneous, so that more than one person can view the docu- ment at the same time. Access time can be counted in tens of seconds, not tens of minutes, as is the case in a typical paper records manage- ment environment. Simultaneous access of document images leads to what many consider the technology's most significant benefit~the ability to elimi- nate tasks that exist solely for processing paper. In any kind of pa- per-based environment, documents move serially from one worker's desk to another upon completion of the task. With imaging, workers no longer have to wait for someone else to complete a task before they start theirs. Document images move in parallel fashion, allowing for greater worker efficiency. Innovative users of imaging have re-worked or re-engineered tasks and staff duties and have cut costs while boosting productivity. When the Stockton Police Department automated the flow of crime reports with imaging, it was able to absorb an increase in reports without increasing staff. The city of Chicago's decentralization of its parking ticket program was a direct result of imaging. Hearing offic- ers no longer needed to station themselves next to files containing tickets and correspondence in a central, downtown office. Imaging enabled them to move out to where the violators lived--in the neigh- borhoods of Chicago. Imaging enabled the Syracuse, New York Police Department to cut clerical labor costs by $200,000 and put two offic- ers back on the streets. Imaging has also proven successful in bringing in badly needed revenue. Chicago's parking ticket revenue soared from $34 million in 1989 to $48.8 million in 1991 after imaging was introduced. Middlesex County's Registry of Deeds charges fees to businesses that look up documents on its database and have images faxed to their offices. The county has been averaging between $80,000 and $100,000 in revenue annually since its imaging system was installed. Finally, imaging can benefit public service delivery. In any local government department where imaging is in place and a public ser- vice is provided, you will find a public-access terminal where an individual can locate a document in seconds instead of waiting to be served. These kinds of service enhancements can't be dismissed as lO The Local Government Guide to Imaging Systems frills. Imaging is part of the wave of electronic service delivery that's sweeping the public sector. With tighter budgets, cities and counties can no longer afford to add more front-desk clerks to boost service. When customers can help themselves at a computer capable of dis- playing document images, a clerk is free to handle more complicated tasks. When imaging can be used to provide a specialized service, such as Middlesex County's deed-on-demand service, customers are often willing to pay more for the benefit. Success Factors With so much to gain from imaging, it is easy to overlook its potential problems and pitfalls. Imaging remains a complex and costly technol- ogy that is still relatively new, especially in the area of standards. Gaining the maximum benefit from imaging calls for extensive plan- ning at both the policy and management levels of government, as well as a firm understanding of the technological variables. Over- looking any one of the crucial planning steps can break budgets, slow down implementation and cut short anticipated benefits. Certain key actions determine whether an imaging system will become successful: · Begin by setting strategic goals and objectives. Effective implementation of imaging requires a common vision of what .the city or county expects from the technology and a strategy for meeting those expectations. Strategic planning can be one of the most effective ways to define goals and set a path for reaching them. With strategic planning, a city or county can establish where imaging opportunities exist, make informed decisions about its goals and plan a realistic way to attain them. · Engage a top-level champion to ensure success. Planning a successful imaging system requires strong management sup- port. Imaging involves not just a new technology, but informa- tion and how it is processed, tasks and how they are performed and the people who perform them. A project leader can see that all these elements receive equal consideration. If the use of imaging is to be cross-departmental, a leader can settle any factional disputes that might arise over such matters as data ownership, hardware and software standards and other issues. · Find people with the proper skills. Imaging presents unique technological and managerial challenges. Most government de- partments have limited experience with client/server comput- ing, scanners, relational databases, OCR and other hardware and software components unique to imaging. Similarly, man- agement tools, such as business process re-engineering and change management, are not widespread in government, but are important .to the success of imaging. Be sure the imaging project involves people--inside and outside government--who have the skills to use these tools. · Introduction 11 · Consider usage factors, legality of images, and document retention requirements. DocUments that are rarely used prob- ably don't require imaging. A lower-cost solution, such as mi- crofilm, might be the answer. More important, review policy concerning retention limits and the legal ramifications of stor- ing certain public records as electronic images rather than as paper documents. Finally, if converting existing paper files, examine the documents and ascertain which should be saved. The cost of converting existing files into images is significant, often exceeding the cost of the imaging system itself. Elimina- tion of redundant or unimportant documents can lower conver- sion costs. Be sure to start with a winning application. According to most surveys and studies, imaging will become a predominant technology in local government in the coming years. However, the speed with which it spreads throughout a city or county will depend on the success of the first application. City or county councils will be reluctant to fund expansion of imaging if the initial project takes too long to implement, costs too much or falls short of its projected goals. Select the most appropriate application, one where the payback potential is the greatest. If the approach is to start with a pilot system, be sure it's part of the overall solution strategy, not just an attempt to understand the technology. Many pilot projects have died because they didn't fit in strategically. Devote time and resources to change management and re-engineering. Because so much information in local govern- ment resides on documents, changing from a paper-based infor- mation system to one that is automated by imaging can be challenging to an organization and disruptive to its workers. Communication patterns will change as routine tasks are auto- mated. Some employees will use computers for the first time. In order for imaging to succeed, the organization must help its staff absorb these changes. With change management techniques and tools, government departments can address change suc- cessfully. Re-engineering is now Considered by many to be an essential step in implementing any strategically important imaging sys- tem. It provides local governments with the greatest opportu- nity to significantly boost productivity, enhance services and cut costs. However, the process of re-engineering is not for the faint-hearted. It involves completely redesigning how work flows through a department or an entire government. Re-engineering also calls for the elimination of many traditional tasks and the implementation of entirely new ways of doing business. Han- dling the human factor in a re-engineering project can make choosing an imaging system look easy. Experts say that candi- dates for re-engineering need to start their work well in ad- vance of implementation and must be willing to devote the resources needed to get the job done properly. 12 The Local Government Guide to Imaging Systems · Look for revenue- producing options. Like re-engineering, imaging is an opportunity to add value to government ser- vices. By charging an ap- propriate fee for the new value, local governments can create a revenue stream where none existed before. Most often the value comes in the form of expedited services, for which many businesses are willing to pay more rather than spend time do- ing business the tradi- tional way. Follow an implementa- tion plan. The phases of an implementation plan allow local governments to establish a clear set of tasks and responsibilities within an understandable decision-making frame- work. Breaking the tasks down into identifiable and manageable steps helps to keep the imaging project on track. The phases also serve as appropriate check and review points for man- agement. Because of the level of detail involved in imaging implementation, this oversight and review can be critical in keeping the process from bogging down in minor issues. · Gauge the impact of im- aging on the existing computer systems. These days, imag- ing is rarely implemented as a stand-alone system. It delivers its greatest impact as an integrated system. This often means linking document images with existing databases and trans- porting images across existing networks. Potential users of im- aging need to be certain that the imaging application can integrate as seamlessly as possible with existing databases and that it will not present a "traffic" problem on a government network. CPE DIRECT TrIN PAP UP A FFI How one company went high-tech, dumped its paper documents, saved $18,500 a year and boosted productivity. by james E. Hunton arly in 1992, Larry L. Clark, vice-president and controller of Chaparral Steel Co. in Midlothian, Texas, realized his company was awash in paper. Clark suggested the company consider moving toward a paper- less office. The goal was to convert all new paper documents and some of the old ones into electronic images and eventually close a warehouse clogged with old documents-- invoices, purchase orders, accounting re- ports, tax records--without losing access to the information they contained. With a computerized system, it was reasoned, all the company's past and future documents could be stored in a fraction of the space needed for paper files. Such a system would allow his staff to gain access to im- ages of the documents almost instantly, no matter ho~v hard they were to identify. Management approved the move--by paper memo, of course. Two years later, the project is well under way, saving the company money and improving .operations. The company, a subsidiary of Texas In- dustries, Inc., operates a high-technology mill that produces bar and structural steel by recycling scrap. Its parent is a Fortune 500 company. ~, MAKING DECISIONS Right from the start Clark realized that no off-the-shelf imaging and retrieval product perfectly suited the finance department's needs because in addition to converting pa- per to electronic images, he wanted to au- tomate the paperwork flow. As a result, he had no choice but to cobble together a com- puterized system. At Chaparral, as in many other compa- nies, documents move from one depart- ment to another, with various actions tak- en along the way. For example, a requisi- tion is created and forwarded to manage- ment for approval. Then it moves to the purchasing department, which creates a purchase order. When the goods are re- ceived, a receiving report is created and forwarded to the accounting department for matching with the invoice and for sub- sequent filing and payment. The goal was to integrate this part of the operation into the system. Clark sought support from his staff-- the people who would use the system. Five departments (credit, purchasing, general accounting, treasury and cost ac- counting) with about 35 people report to him. Initially, some staff members were skeptical and resistant to change. Clark decided to win them over by involving them as much as possible: by keeping them aware of what was going on, including them in planning and decision making and providing comprehensive training in the use of the technology. The approach worked: The employees' resistance faded and they even began to JAMES E. HUNTON, CPA, PhD, is an a~sistant professor at Virginia Commonwealth University, Richmond, Virginia. Earlier this year he was award- ed the Lawlor award for the best articl~ in th~ Journal of Accountancy in 1993. JOURNAL OF ACCOUNTANCY, NOVEMBER 1994 77 CASE STUDY THE HARDWARE CHAPARRAL USES Chaparral ins~all~d"~he follosving compo, nen:s as parc of its document image system: · For ks two input stations, where documents are scanned, the company chose Compaq 386 personal comput- ers with 19-inch color monitors. The scanners are Fujitsu M3093E models wkh automatic document feeders. [] The index is stored on a Compaq 486/33 wkh ~ 1-giga- . byte (Gb) hard drive. [] The optical storage devices are a Panasonic LF-5080A 47-Gb Autochanger (a "jukebox" with two internal drives) and two single Panasonic write-once-read-many (WORM) LF-5090 optical disk drives, each with 940-Mb capacity. · Two additional Compaq 356/33s wi~h 80-1rib disk drives act as servers to control the printers, the faxes and the jukebox. · 'Twenty Compaq 486/33 workstations are situs:ed throughou~ the accounting department for document re- trieval. boast how easy it svas to locate accounting documents. "The new system clearly beats the old way of storing and retrieving docu- ments,'' said Karen Dennis, a senior admin- istrator who manages the system. One of the most important decisions to be made initially, Dennis explained, was how to organize the filing system and the indexing scheme--the database that xvould locate and retrieve all the docu- ments. It became clear that success hinged on document retrieval--how each document ~vould be coded for searches. Developing an indexing system, they soon realized, was as important as the planning that went into setting up a chart of accounts. Unfortunately, when the company first launched the system, the indexing scheme xvas designed as if the accounting and purchasing depart- ments were two separate entities be- cause that's the way business had been done in the past. As a result, some docu- ments were "lost" in the system and some attempts to link related docu- ments-for example, purchase requisi- tions ~o purchase orders ~o receiving re- por~s to invoice to check--were futile. When ~he staff reconsidered the indexing system, it decided on a design uhat orga- nized the documents using "file cabinets," "drawers" and "folders" (for more on this approach, see "The Paperiess Office," page 73). All the departments received their own file cabinets in the system's electronic storage space. The lone excep- tions were the accounting and purchasing departments, which, because they now worked together, shared the same cabi- net. Within the cabinets the departments made their own file dra~vers for vendors, aging analyses, transaction reports, e~c. The vendor drawer, for example, was or- ganized into folders: purchase orders, re- ceiving reports, packing lists, freight bills of lading, invoices and checks. In a typical situation the accounting depart- ment would have its o~vn file cabinet (see l.._..~'!d6CUment..-:imagifl-f~:'sYste'm--'.tw'o ye..~..~.:~a_'go!.~j~! g."oin~ .~'ii.(in. clu.de !the~m. i~' plan~,'ng ~nd ~ ~(Despite~ s0me. early :mistakes' in the Whfdoc-J-,...(~Ci~'gision m~kini~'and P~o_vi'.d_ e dgmprehen_si.ve I ~'-,.',~~nts Were filed-and indexed, the sYstem is.'(!~}~i.'.ning '~:J' ' """ .... nmn' ........... -and'has saved the corn an' '"~'?.~.,.technology"' ..... -" :-"'"'::, ''~: .~a.~ ;,~ ~:~'~:~; · -,~:--..--,';-~ '~,:~.~:'.,.., _ ~;-J.:.:: ~.-u and.ru g . . p Y ..... .':.:~,: .."~-:'-'-.---..-*.'.-:,-:'~"--.:...:--:' ~:..:., -'::-.~ ::-:',-.~-:; ---:,: ~;P.:: . . ........... . . - ,,,-~ -... .... ...,... .. · . , - . :.,,. !~-RIGHT FBOM :,THE'START:tl{~ :~0~npa,~:%, · !ONE OE:~THE:MOST:'mipo~t' dec!Sl0_ns · .,.~ ~- grog . Y ..... .~..; .... ...: .... .. [[~.'.EHE EXECUTIVE,INfCHA~.~G~~h'~.~.~~"EORLD~O:UME_N~:~R'E'T :j -.~.:.~:.,_~. ..u .~.,. .'w'. ' "r:";' ;.. ...... :'-.-'r-- .... -:_-,'- :-,..,-. ,~..:---~,-.. -~-.~.,-~- i~ ..... ~-~."roject~alsoxealized: he?,needed sUpport.~, 'companYkset.'..,u,p~O:.w,o~r~.,ks"tations '.through:out_i~ ~,~.,;,; .' ....... '..; ..~,-~. ,..,~- 4 .... ;, :;*:'~,' . -.~..--~- -,c~.;:'7~X. :-.~', .... .~:.* .: - - ,-' .... "' .... - -:,"~-. [ :::~Ti/~:.~use tHe. System[.:He :d~'c{d~a ~h~ ~'eit .~a~::~{~..'of l~l~cah'k~h~6..htkff~e~ I ~,..:-,_t~.~,....~.~-~.~:-~-,. ! ~- ~-.-:i ~':'~'~ ~li,-~..' ~b ~.~ ~.--'2~:~? ~-'.:::: :" [..,,~. ~ ..... ...... ~ .......... , ...... .-..~. : .... ,~ ....................... . .............. ~ ..... j 7S JOURNAL OF ACCOUNTANCY, NOVEMBER 1994 '_ '~ "-~.L . -.: 7; -:--*.=. ~-.~"-. "~;--,'- --U~lr-~-; '~Y~l"';"-'.'~-'.~.-~'~'¥~;~i:*~",'~"~" ;~JT/--~~3 . . --.~,~'~-~---"''?~-"-r~."~*~'-'~.~:~.'-~w--J~'r,-~:--'r'~;'~>~:~~ ....... ~ ..... ~---~'--;~.--~:'~-~.-.,~'-;''wr~"~'~'~'~L~'~'' J'~- CASE STUDY How documents are filed. exhibit 1, below). File drawers would be designated for activities such as payroll. accounts receivable and payable, invento' ry and general ledger. File folders would be earmarked for customers, aging analy- ses and transaczion reports. The docu- ments would be labeled with an index code. For example, a sales order would be S01234 and a shipping manifest would be SM3456. Or a letter would be indexed either by the topic, the name of the recip- lent or the date of the letter--or a combi- nation of that information. THE SHOPPING LIST The hardware choices were easier. To scan and index documents initially, Clark set up two inpu~ stations (comput~ers plus scan- ners) in ~he accounting department (for more information, see the sidebar, "The Hardware Chaparral Uses," page 78). De- pending on the resolution needed (some EXHIBIT 1 Sample accounts receivable document organization File cabinet "'" :i:-'.;--:..:/-;.~i:"'.-:~: .... .. ...... ..::.~..?_._.'.'..-.:.....-.. ;E'--.~.' File drawer · · . . report~ · Electronic document ! ,--- Date ! :--- S.M.# :--- S.i.# A/F' Znventory i-- S.M.# ' -- Date i---s.o.# ! .... S.l.# ,"- Date ! .... S.R.# G/L ; :--- S.R.# :--- Date :--- S.l.# .... CM# ! · :--- Date ' ' - Date '--- S.i.# I''"' '.'-- Key words Index keys 80 JOURNAL OF ACCOUNTANCY, NOVEMBER 1994 CASE STUDY documents require high-resolution scan- ning foi' clarity), the scanners can be set to 200, 300 or 400 dot-per-inch (dpi) resolu- tion. At lo~v resolution--200 dpi--they scan about 25 pages per minute; at 400 dpi, speed is cut by about half. Documents are organized by transaction so that, say, all documents relating to a particular purchase are scanned consecu- tively. The software allows the clerk to preview a scanned image and rescan it if it is not readable. Reports that come from the accounting information system, such as journal listings and financial reports, are sent to a spool (soft~vare that temporarfl' stores files awaiting an operation--in thi~. case scanning) and imported automatically into the imaging system. The computer-generated reports are stored as text and can be searched and're- trieved based on the words and numbers they contain--an operation similar to any word processor text search. Documents are indexed as they are scanned. Once the WHAT .YOU NEED TO KNOW TO GET STARTED · The first step in launching a document imaging system is to determine your needs. First, some questions to ask: · How many documents ~ll be processed? Axe the documents one- sided or two-sided? In color or black and white? [] Must documents be passed from one department to another? Only when the document path is clear should you shop for a software .vendor. Remember, your needs will grow, so se- lect software that can grow with you. A list of vendors is shown in exhibit 2, page 84. Since most document imaging soft- ware can handle images from multiple sources (faxes, data imported from otb- er computers and scanner output), spe- cial hardware must be se~ up to accom- plish this. What's needed is an input workstation--a computer, scanner and a fax machine (or a fax board in the work- station). The workstation should be at least a 386 computer ~-ith 4 megabytes (Mb) of RAM and at leas~ a 200-Mb hard drive. A high-capacity hard disk is need- ed because scanned documents must be stored in the workstation before they can be transferred to optical disks. (See exhibits 3 and 4 for hardware costs for stand-alone and networked systems, re- spectively.) With this setup, documents can be previewed and, ff necessary, rescanned ff their quality is not acceptable. For only slightly more money, consid- er a workstation more powerful than the one described above: Invest in a 486 computer with 8 to 16 Mb of RAM and at least a 500-Mb hard drive; its speed will be worth the extra investment. Give the monitor special attention-- after all, it's the viewing instrument, so it's critical that it be of the highest qual- ity. While a 14-inch model is acceptable, it's better to get a 17- to 21-inch model; larger screens generate larger images, making them easier to read. The moni- tor should have at least 1024-by-768 res- olution, a 76-hertz refl'esh rate and a 0.28 dot pitch; it should be noninter- laced. Expect to pay a street price of be- tween $300 and $700 for a 14-inch moni- tor, betxveen $400 and $850 for a 15-inch model and at least $900 for a 17-inch unit. Also, consider adding a high-quali- ty graphics accelerator video board with at least 2 Mb of on-board memory. Such boards range fi'om about $150 to $800. Be sm'e the software you settle on is compatible x~th a wide variety of scan- ne~. This is important because you may end up buying several scanning, with each doing a specialized job. The scan- ner should allow for variable resolu- tion-for example, from 200 to 400 dots per inch (dpi)--because different docu- ments often require different resolu- tions to reproduce well. Depending on the scanner brand and the level of reso- lution, scanning speeds vary from about 6 to 50 pages per minute. Scanning takes longer when the operation is done at higher resolutions. Scanners come in color or black-and- white models. Color models are slightly more expensive..Be sure to select a unit with an automatic document feeder; it's a great time and labor saver. 82 JOURNAL OF ACCOUNTANCY, NOVEMBER 1994 CASE STUDY Vendor/product Pagekeeper Caere Carp. 100 Cooper Court Los Gatos, California 95030 J800J 535-7226 Ultra Series Courtland Group 10480 Little Patuxent Parkway ~4c~iumbia, Maryland 21044 O) 730-7668 AV Image EXHIBIT 2 Prices of document imaging software Stand-alone ( 1 user) DOS Windows N/A $595 Network (5 users) DOS N/A Network (1 0 users) Windows DOS $1,995 N/A Windows $3,990 $2,795 $2,795 N/A N/A $6,795 $6,795 N/A N/A N/A $4,270 N/A Data Generat 4400 Computer Drive Westboro, Massachusetts 01580 (800) 344-6736 Personal Edition N/A $595 $7,745 Workgroup Edition Enterprise Wide plus Keyfile Desktop Edition (OS/2 server) Keyfile Corp. 22 Cotton Road Nashua, New Hampshire 03063 (603) 883-3800 Recollect N/A N/A $595 N/A $2,995 N/A N/A $15,945 Mindworks 735 North Pastoria Sunnyvale, California 94086 (408) 730.2100 PaperClip $1,995 $595 $10,850 $4,995 ,$15,825 $9,970 PaperCiip Imaging Software Continental Plaza 1 401 Hackensack Ave. Hackensack, New Jersey 07601 (20 l J 487-3503 PCDOCS Open N/A N/A $1,620 $1,990 $2,745 $3,485 PCDOCS Inc. 124 Marriott Drive Tailahassee, Florida 32301 (800) 933-3627 SoftSolutions $495 $595 $1,940 $2,525 $3,385 $4,445 SoftSolutions Technical Corp. 1555 North Technology Way Building H Orem, Utah 84057 (80 I) 226-6000 File Majic WestBrook Technologies, Inc. 22 Pequot Park Road Westbrook, Connecticut 06498 (203) 399-7111 N/A $1,495 N/A *To be released. N/A N/A $3,495 , 84 JOURNAL OF ACCOUNTANCY, NOVEMBER 1994 . . CASE STUDY EXHIBIT 3 Document imaging hardware costs for a stand-alone system ~ Stand-alone workstation for scanning, indexing, database storage, search and retrieval and display: 386/33 with 8 Mb of RAM and a 200-Mb hard drive ............................................................. $1,150 NEC MultiSync 4FGe 15-inch monitor with 1024-by-768 resolution and a 76-hertz refresh rate .............................................................. $755 ATI Graphics Ultra Plus 2-Mb video accelerator card ...................................... $310 Internal optical WORM drive (5.25-inch, 940-Gb Panasonic LF5010 with adapter) ............................................. $2,470 250-Mb Conner Tapestor internal tape backup for the index database ........................................................ $150 . Hayes fax-modem board .......................................... $200 Hewlett-Packard Scan Jet liP grayscale scanner with feeder ................................. $1,000 Texas Instruments Microlaser Plus printer with 300oby-300 dot-per-inch resolution ............................................... $ 850 'Total ......................................................................... $6,885 EXHIBIT 4 Document imaging hardware costs for a networked configuration 2 NEC MultiSync 4FGe 15-inch monitors with 1024-by-768 resolution and a 76-hertz refresh rate ........................................................... $1,510 2 ATI Graphics Ultra Plus _ 2-Mb video accelerator cards ................................. '...$620 2 internal optical WORM drives (5.25-inch, 940-Gb Panasonic .. ~ LFSO 10 with adapter) ............................. ' .............. $4,940 · Hewlett-Packard Scan Jet liP grayscale scanner with feeder ................................. $1,000 Total ......................... ' ......................................... $8,070 input clerk is satisfied with the quality of an image, it is transfe~Ted electronically as a file to the appropriate cabinet, drawer and folder. With some exceptions, images and docu- ments are stored in optical drives because, although they are not as fast as hard dri- ves, they can store far more data. Howev- er, when speed is a priority, the hard drive is used. The index database, for example-- from which all retrievals are triggered and for which speed is a priority--usually is kept on a hard drive. The company re- serves a fast computer with a high-capaci- ty hard drive to accommodate the index, which already takes up 400 megabytes (Mb) of disk space and continues to grow. The optical storage devices are write-once- read-many (WORM) optical disk drives, each with 940-Mb capacity. They are oper- ated by a "jukebox," a device that stores, retrieves and "plays" disks much like a regular jukebox. It can handle as many as 50 optical disks. The company upgraded 20 computers throughout the accounting department to image-retrieval and viewing stations, so there are plenty of places ~vhere staff can- retrieve documents. Once a scm'ch is initi- ated, the database server extracts the re quested index keys and tags the requeste, documents. The jukebox server then re- trieves the documents from the optical disk drives and sends them to the requester's workstation. Electronic documents can be displayed on a ~vorkstation screen, printed, faxed or exported to another computer system on the companfs network. A high-quality laser printer is necessary to print document images with graphics. Text-only documents, which do not requh'e high resolution, can be printed by faster printers, such as line or dot-matrix print- ers, which are especially appropriate for long accounting transaction journals. MOVE IN SMALL STEPS Clark's advice to companies planning to install a document management system is to "move in small steps." They should plan and install one operation at a time, fixing any bugs that arise before moving on. The index scheme--the linchpin of such a sys- tem-must be planned carefully. Finally, by including the staff in the planning stage, companies can encourage employ- ees to accept the system and make the most of the opportunities it offers to i' crease productivity and improve the qua ity of their ~vork. I" JOURNAL OF ACCOUNTANCY, NOVEMBER 1994 85 FiRE DEI'ARTIdEN_.NT, ~ 14UlI~PAL AIRPORT CITY OF KENAI FIRE DEPARTMENT 105 SOUTH WILLOW STREET KENAI, ALASKA 99611-7745 (907'i) 283-7666 , FAX (907) 283-2267 FOREWORD We at the Kenai Fire Department are committed to providing the best services possible, to accommodate the needs of our community. The Kenai Fire Department has only one Goal: "To Better Serve the Citizens of Kenai". To achieve this goal, we believe that fire prevention is as important as preparedness; that being ready for any emergency is the purpose of training; and that modern equipment operated by dedicated, well-trained personnel provides the most effective combination to meet this goal. We strive to provide these services to our residents with the knowledge that we are giving our best. In an ever changing community, where growth is happening every day, we need to utilize the resources available to us to accomplish this task. In this proposal, we will demonstrate that the need for 3 additional positions does exist and to fill that need would be an asset to our community. The Kenai Fire Department is committed to providing a complete and up-to-date service that meets all local and federal guidelines. In reading this proposal, you will understand the need and concerns of this request, i urge you to keep an open mind and rely on the facts presented here. We thank you for the support you have given in the past. Because of your concerns and efforts, the citizens of Kenai have become beneficiaries, not only on a monitary basis, but also on a physical basis, through services provided to them. We hope that the decisions you make on this request, are based on the needs of our community, with respect to public safety, as well as the safety of our personnel. Respectfully, David C. Burnett, Fire Chief Table o~ Contents Chapter i The Need For Three (3) &dd~2~ona[ Pos~2~ons Chapter 2 The Search For Alternate Funding Chapter 3 Recommended Solution For Funding Chapter ! The Need For 3 Additional Positions As our community grows, City services must expand to meet a greater need. Since 1984, the departments emergency call volume has increased by over 100 percent. At times, this has meant deploying all personnel from the station and taxing all available resources. This is becoming the rule rather than the exception. In 1993, we received 829 emergency calls. 361 of those required a recall of at least 2 off duty personnel to man the station (Class II Recall); 173 were back to back calls or emergencies which taxed the department's resources and required all personnel to respond (Class I & Class III); 178 were cancelled enroute or were duplicate calls where an engine responded with an ambulance and required no additional recall; 117 required no recall due to administrative personnel manning the station. RECAI. L VOLUME 100 1993/1994 MANNING COMPARISON ~ REDUCTION 3 -MAN 4-MAN 1993 1994 1993 ACTUAL - 1994 ACTUAL I3-MAN I4-NL~q The above graph demonstrates the volume of recalls necessary for the 3 man versus the 4 man shift for 1993/94. These figures were on the actual calls responded to. The differences are very significant. In 1994, we received .785 emergency calls~ 347 of those required a Class II recall; 122 were back to back alls or emergencies which required Class I or Class III recalls; 84 were cancelled enroute or were duplicate calls where an engine responded with an ambulance and required no additional recall; 160 required no recall due to administrative personnel manning the station. THOUSANDS 1993/1994 DOLLAR COMPARISON FOR 3-MAN VS. 4-MAN 54.6 34.9 33.5 1995 1993(AC~AL) - 1994(AC'IUAL) I 4-M~d~q I PJ£DUCI'ION 1994 The above graph illustrates the dollar cost of recalls (estimates only) using the present 3 man system versus the 4 man proposed shift. Projected reduction in recalls (overtime) are also illustrated. The addition of three positions would create a four man shift which would effectively create the ability to respond four men with two vehicles, meeting the minimum manning requirements set by the department. It would also enable the department to respond to an emergency and man the station with the required minimum of two people, providing the existing emergency allowed for a two man response. Most shift coverage for leave and/or sick leave has been provided by the Assistant Chief, Training Officer and Fire Marshal (28 hours, 700 hours and 150 hours respectively in 1994). They are given comp time in lieu of overtime. With the addition of 3 positions, 1993 would have seen a 58% reduction in required shift coverages. 1994 would have seen a 71% reduction in required shift coverage. SHIFT COVERAGE COMPARISON 1993 & 1994 3-M.~u~ vs. 4-MAN SHIFI~ ACTUAL SHWI'S 100 10 1993 1994 BASED ON REQUIRED COVERAGE m3-NL~w I4-NL,~N The above graph illustrates the 3-man shift versus the proposed 4- man shift for 1993 and 1994. There would be a significant reduction in required shift coverage. When administrative personnel cover for shifts, they are pulled away from their daily tasks. The proposed three positions would allow for administrative personnel to effectively do their jobs and in doing so, will assure that training and safety meet all required standards that have been set by the department. The safety of our personnel would be dramatically improved with these additional positions. National standards used by the Insurance Service Organization, which rates cities based on fire service capabilities, is currently recommending four-man emergency responses to fire and hazardous material incidents. The following scenario demonstrates the concern for the safety of our personnel during a structural fire, and how the addition of 3 positions would greatly reduce such concerns: At 4:00 a.m., we receive a report of a structural fire in a three bedroom house with a full basement. It is located in a subdivision five minutes from the fire station. Currently,a the department is able to respond to a fire like this with single engine, manned by three personnel. Once on scene, the Engineer would hook to a hydrant and man the pumper, while the Captain and Firefighter don air masks and pull hose lines to the front door, ready to make entry. The Captain makes his way through the snow to the back of the house, shuts down the gas and electricity, then back to the front door to enter the house with the Firefighter. The Engineer tries to maintain contact with the crew inside, he can only watch the front of the house for structural collapse or other safety hazards, such as downed power lines. A thorough search of the home is made for victims. The fire is found and extinguished. The air masks are nearly empty, so the Captain and Firefighter leave the house for a fresh air supply, then the house is ventilated and overhaul is completed° All occupants had escaped safely before our arrival. From a safety aspect, the addition of three positions would have changed this scenario considerably: Two engines respond with a total of four personnel. Once on scene, the first engine hooks to a hydrant then positions in front of the house. The Engineer mans the pumper while two personnel in air masks pull hose lines to the front door and they make entry. At the same time, the Captain shuts off the ~as and electricity, maintains contact with the two personnel · nside and watches the structure for collapse or other safety hazards. Just as the search for victims begin, the Captain is able to advise the crew inside that the occupants are safe and accounted for, saving valuable time and air in the crew's masks. The fire is extinguished, the home is ventilated and overhaul is completed. Had another water supply been needed, the second engine would have supplied it. Additional ventilation fans and salvage tarps from the second engine are used to remove smoke and water from the home more quickly and efficiently. Less damage results to the home and our personnel were placed in a safer environment in the performance of their duties, with the Captain free to supervise the entire scene and account for the occupants and personnel safety. It should be noted that operations in the department provide 3 areas of service: Emergency Medical Services, Structural Firefighting and Airport Crash Fire/Rescue. As stated previously, the department finds itself continually taxed to its limits due to call frequency and feels that it is a matter of time before our level of service is compromised. In summary, a broader base of personnel will reduce the possibility of "Burn Out" with the reduction in recalls; it will increase the safety of all personnel during fire or rescue operations; it will accommodate the increase in frequency of calls and it will enable administrative personnel to tend to their day to day activities. It is the intent of this proposal to reduce those liabilities and further provide safety to all tax payers of the City, in addition to providing safety measures for all personnel. Chapter 2 The Search For A12ernate Funding We all agree that the General Fund (reserve accounts) should be protected at all expense, and that use of that money should be considered only as a last case scenario. We have researched other avenues of funding, which included applying for various grants, most of which have already been depleted for this fiscal year. Availability of these funds is not something that could be relied upon as a continued source of funding. In most cases it would be a one time occurrence. Our research led us to more reliable and feasible funding of these positions, which would not directly affect mill rates or otherwise increase costs to the citizens of Kenai. Chapter 3 Recommended Solution for Funding In a comparative analysis based on the Kenai Municipal Airport providing these services for itself versus the Kenai Fire Department providing these services for them, we can see that a larger share of the Fire Department costs could be supplemented by the Kenai Municipal Airport. Having the Kenai Fire Department provide service to the airport is much more cost effective. Shown below are estimated operating costs for 2 hypothetical fire stations (General Fund and Airport). These figures were submitted by Charlie Brown, Finance Director and reviewed by myself and Randy Ernst, Airport Manager. All three departments concur with these figures. ~/F Airpor~ Combined Original FY95 Budget Extra · s, Capital Items Total Operating Budget 1, &&5,000 -275,000 1,170,000 Proposed 3 Positions 3 X 65,000 195,000 Total Operating Budget (with 3 New Positions) 1,,365,,000 Costs Necessary for Airport: Battalion Chief Secretary i Engineer 2 Firefigh%er (1 person per shift) Operating Costs/Utilities Not Included 80,000 '&O, 000 72,000 130,000 3,22,000 Calculation of Cos% Allocation: ~f only G/F (81%) I f only Airport (19 % ) Total (100%) 1,365,000 322,000 1 ,, 687,000 Apply percentage ~o adjusted budget: $1,365,000 X 19% = 259 ~.000 The Airport has achieved a Federal Certification and is required to provide certain services to maintain that certification. Airports are ranked, or indexed for certification, according to the type and quantity of Aircraft Rescue .and Fire Fighting (ARFF) services required, which is determined by the size and frequency of aircraft served by the airport. The ability to provide those services around the clock is mandatory to maintain certification. This mandatory, round the clock service was funded by the airport in the amount of $52,000, in 1994. The Kenai Municipal Airport is ranked as an Index A, because it serves an average of 7 flights per day of aircraft having a seating capacity of more than 30 passengers, and the longest aircraft served is under 90 feet. The City has provided the required Airport Rescue Fire Fighting (ARFF) protection to the Airport, through the Fire Department for the past 20 years. This has enabled the airport to maintain certification, while the airport has provided limited funding for these services. Traditionally, funding has come from the General Fund. The Kenai Municipal Airport is one of the most valuable and profitable services the City provides. Its assets and income far exceed its expense. It was recently recognized as the busiest commuter airport in the United States (see exhibit A), bringing hundreds of thousands of tourists and business people to Kenai every year. On the average, between 5 and 10 emergency responses to the airport are required every year. The potential for a serious aircraft related incident increases annually with additional use and expansion, such as the float plane basin. Airport use includes an average of 60 commuter flights per day; as a training site for the Alaska Air National Guard and Coast Guard, and as an alternate for Anchorage International Airport flights, including heavy aircraft up to the Boeing 747. Funding these positions through the General Fund and supplementing that cost with funds from the Kenai Municipal Airport Fund will offset demands on the General Fund and/or reserve accounts. I~ S-----ry.. This is a viable means to provide these positions. This proposal has shown you why additional manpower is needed, how increased manning will be used to its fullest potential, how and why airport funds can be accessed, and how the City and airport will benefit from the added positions. I recommend funding of these 3 positions from the General Fund, with a possible supplemental to the General Fund from the Kenai Municipal Airport Fund for the recommended $259,000, or 19% of the Kenai Fire Departments annual budget. 10 ,!, DECEMBER 15, i994' USA TODAY ~-_--. ' _-~' ;~_--~- "-:~--_---- - -_' L: ','." __--:---'~ '---_~-- _~'_ ~ 7_ _ _ ' --':-_-' ........ --' ' [ ~u__,.t~ · · · ~ . .i!'..Top commuter airline routes acr'0'sS.the USA" · Busiest commuter flight routes (bot.h ways) ranked by number of average flights per day in December 1994:... ' . Airports . Flights Airports .' "..'. ' " Flights ~'~h;5'/"~ g~i;~K e n ai'~i' Alas k a ~i'~.~-:;i;~.-:-.i¢-.:~.?~!.;.':.~;!:.?~~~. 60;_ H 6niblUlU"ii M ol0k'~i?':..~ ~."i~ii''''' '?-'~'~:' ::' ::':':::-:' ''':~''':''-~'-~''-:~?'*'~::'~': ~' '':'?~ :-'' :~' :''~: ::~'': :.. ~ .~ ~:.~ ~,.--.;*...~~: ~~2..~.;~,~:.:.-.~ .... .,,.:~.:; "'-':" 19 · Los Angeles'- San Diego ~ 50 Los Angeles'- Monterey, Calil. ~ ~ .., '...,~ 19 D~'~':~!~'i:3 F~"~;"30"r~'~i~)n;':-C~fb]~5!~~i~i~!3 7~ ' '?' .....-.'!~ .... -;:. .......... L~.`:...~.~.`:.~r~.~.?..~.~,?.:..=.~:::?`~..~..``~.~.~:.~.~`~?::?~...~:~?~..:~`~.:r. :,.: :.- ' K e y W e s t~: R a.,-~.. M lam t..,,~ =~-,..:~.~,~:~.~=~.-..._.,~=:,..-,~.~....;.....~ _,..-,...., ~..~;.;: 19. Reno- San Francisco ' · -.' ' HS~5iiSld-'~'F~d~,";"t.M-~-di"~;~;-~"- ~~'~--:~:.;~?6'~ ~ -30 Los Ancleles'- Yuma~ Ariz. . .- ..... ' 19 · Bakersfield, Calif.- Los Angeles~ , : ' - ' 30' _Chicago- Springfield, I11. " . .... '. 19 · ' -',:'". :.'.-'-?'-'-?:: - ...... ::.~-;:" ,'.'-".-.- : .-..',' ,' .... .:.'..:-?.':'-.'~:-:~---:-.--.-.:~.,.-....?..?.,?¢.~-~:?:~z.~,~.~ .... , · - .":,? --"-: ,?.-,..¢,rf-¢,.~..,~-%:~'.....-,...~~:~ ~.~?....-~.....-'. ~~?,"~...'t..~..?.'t..~?-..,-~, .-"1 F..r..esn. o;::::,Calif:?L San.: Franc,sco,~.--;:.~::;i'~;~~.;:_.~¢~:~?:'_'-;-;'.:.& 30. · Al~i~y~ '~.l,Y:3..Boston ~=.;;~-;:;..:.'~~~~:.~:¢,~..:;~-~::.~=_-,.~.,...., 8 ':; Los Angeles~- Palm Springs, Calif. · ~ · ' ~ 29 "Burlington, Vt.-Plattsburgh, N.Y. ' ~ ' 18 · Denver-Durango, Wyo. · 26 ' Naoles, Fla.-Tampa · - -~.. , 18 ,,'Los Angeles' - San Luis Obis~, Calif. ' "' , · · 25 Flagstaff, Ariz.- Phoenix '- ' · · 17 ..:'Los Angeles'- Santa Maria, Calil. ' .~" ' "· 24 Orlando, Fla.'- Sarasota, Fla...,,~' · ' ": - 17 ..... '-. ....... '"'-'"-' ..... - '. .... :.'-; ................ ==,' %..¢~.. ?'-.' ".~.~-.-.'":.. .---- -=." ,.'~.,.~;~,~.~. · - ' ', -- '- .? ¢..' '" ~.-. '..~-?:, ..... '-._'~.-,.,, ,~ .....,?~~~,.~.,_"~...t.%~ _'"z~., _'~..~r~'.-t"".::-'~.'v · - Denver-Raoid City., N.D. · ....... -24 Eureka, Calif.-San Francisco · · ' 17 Orlando, Fla.- West Palm Beach, Fla. . : 23 Atlanta-Fayetteviile, N.C.. .- = 17 Boston- Long Island, N.Y. (MacArthur) ' ' · ~ 22 Denver- Telluride, Colo. -' ,--..- 16 New Orleans- Shrevepprt, La. . ', ' ~20 Little Rock, Ark.-'New Orleans ' ." ' 16 .......... :. · ............ .... -.-.'::._,-'.;':~;_.-...t.-':~;;..%.~._.,~,'~£-:,,%:._:-..:~__::::,"%:_-:~;~- -'"~.?:..._,..~.~.-----~.~,:..-'~.,...:.-.......%-.:~.;,..;;.-'.'"--~:-...,. . ., Boston-Westchester Cou..n.b/, N.Y..-' · .' . ~: 20 Fresno, Calif.-Los A_ngeles~ ' · · ':. ': ,.?16 '.. 'i.'; : · ' . .° · ' ' '" ° 1 ~,AIi from Los Angeles intemalJonai; Source: B;~ck Information Sets, Ices ' ' .' ' . . ,~ ! .............. · . ,. UNITED COOK INLET D~FT ASSOCIATION Office:. (907)283-3.600 · Fax: (907)283-3306 FAX TRANSMI'i=rAL LETTER Date'_ ~//'f//c~~' Time: Number of Pages (Including Cover Letter)' IF YOU DO NOT RECEIVE ALL PAGES, PLEASE CALL (907)283-3600 AS SOON AS POSSIBLE. Subject: la . . . .. · .. R. emark~ by Governor Tony Knowle~ to thc Anchor,,ge Chamber of Commerce April 10, I995 You'll probably be pleased to hear that I didn't come here today to speak about the Legislature. We considered asking for this forum to give a rundown on our first few months in office or to give a session progress report. Aller some ¢.omiderabl¢ thought, I opted to speak about something on the minds of most Alaskans fight about now as the long sunny drtys melt the snow away - fishing. And when you talk about fishing, you always have to tell a story. Mine is about this couple who loved to fi~h and always returned to the same spot on the river to fish .. together. One day another'ff~rman spotted ~¢ wife there alone. Finding it unusual, he aske~i where her husband was. She said that her husband had passed away. "I'm so sorry," he ~aid. "Don't you have any friends or relatives who could be here fishing with you?" "Oh sure," she replied, "but they all decided to go to the funeral." Many Alaskans feel just about tike that when it comes to fishing. So realizing just how important sport fishing is to Alaskans, I sent out a mailer to 40 or 50,000 of my closest friends during the campaign. Here's a reproduction of that mailer, and like to read the key pan: "The most important fish is the one on Alaska's dinner table." And I believe that. We Alaskans live in this country not only for its enormous economic opportunities, but because of its beaut7 and its abundanc~ of natural, resources. That's especially true o[ Cook Inlet, a place with a unique combination of renown fish stocks, spectacular scenery and close proximity to a majority of Alas 'karts. There is no other river in thc world I know of that's blessed with a.major salmon mn and development in such close quarters = the Kenai River. For most of us, there's no way we'd rather m-encrg/z¢ our baneries than in Fashin~ hole on the Peninsula or in the shadow of the Chusach Mountains in the Mat- Su Valley. But the combinstion of rich resources ~nd growing population pressures bring both opportunity and responsibility. We need to avoid the mistakes made in many other river systems where once he~thy runs of fish are gone forever. It would be irresponsible for us not to act now to preserve the treasure of Cook Inlet for our childr,n and ~randchildmn. In that campaign flyer, I also said, quote' "I~ we protect the habitat, ensure a healthy spawning stock and fairly consider both feeding Alaska's families and economic value, Cook Inlet will become the world's greatest sport fishery." At~er you get elected, you're alway~ challenged with mining the 'poetry of your- campaign into the prose of government. Today I'd like to announce three stepe that I believe will make that. campaign pledge a reality. * First-more fish '~ the rivers. We're starting a process of working with the Al~ka Board of Fish~ri~s to pUt' ~om fish in the rive~ for ^la, kan familie~ and maintain viable and prosperous commercial and commercial sports fishing industries. * S_~cond - b,ttcr access. W~'m commit~g an unprece.dcn~ed $20 million to provide better access to Upper Cook Inlet riverways', including the Kenai Peninsula, those in the Susitna drainage and those in the Anchorage bowl. The plan includes expanded recreational opporUmities, habitat preservation and cleaning up our own house. * Third - Crotect our riverwa~~. We're going to protect the rivers, adjacent land and what goes into those rivers so the fish stocks have a healthy chance. Through pa~erships with the Anchorage, Kenai and Mat-Su boroughs, we're going to protect the rivers and fish stocks'. That means a coordinated approach with local, state and federal agencies, land acquisition and education ~o that tho~e who use thc river~ better understand how to do ~o without harming thru. Alaska's fish resources provide the basis for two of our state's premier industries - commercial fishing and sport fishing. As mayor of Anchorage, I was acutely awar~ of' the contributions that fisher/es made to Alaska's largest city and to 2 Southcentrs/Alaska. And those ¢on~butions ar: enormous. In 1993, nearly 327,000 peopl~ took advantage of Southccntral sport fishing oppommities - the majority of them Alaskans. They put in a combined 1.5 million days on th~ rivers unit caught mor~ th~ 1 million fi,h. That'~ a l, ot of pi~¢s,, hip.waders, night~ in hotel~ and other trad~ for Al~kan businesses. In 1986, the department studied thc economic value of sport fishing in Alaska. Back ~¢n, the sport fishing contributed $127 million to ~e Sou~central economy. It's grown enormously since, but no on~ knows how much. W~ n~d to find, out. When I ~¢rvcd on th~ North Pacific Fi~h~ry Management Council, I wa~ iavolvcd wi~ ~ management: of our hi sh ~ea~ fi~hcri¢~. ^~ thc owner of a a ~porl: fi~herman and a f~th~.~,. I appm¢iat, e tho ~¢onomi¢, ~trong eulm..,-al and family vatu¢~ that come with recreational' fishing. We mu~t not forget that similar culmra[ values ~r~ shared by comm,r~ial fishermen. Throughout this country'~ history, conuncrcial fishing has been a family affair, connecting thc valuc~ of hard work and buildhag a business with tho puli of ~ea. Whatever we do, th¢~e important values for ~por~ and ¢omm~¢ial fi~hing must be Fishing ha~ with, it all ~e ~l~m~n~ of thc Alaskan way of' lif~ w~ all cherish - indcpcndcn¢~, har~ work ~d the opportunity for cntir~ families to part. i¢ipat¢. ,4,II fi~hin$ ¢ombin~a ¢¢onomi¢~ and ecolo~. The health of' our fishing indu~tri~ and public confidence in how we manag~ our fish stoel~ ~trength,n~ th~ special quality of lif~ w~ enjoy a~ Since Statehood, our Department of Fish and Game and the Alaska Board of Fishcri~ have worked to$¢t.h~ with fi~hcn'n,a to increase statewide salmon h~rve~t~ f~om about .30 million to mor~ than 150 million fish annually. Clearly, we've had ex¢~ll~nt fi~hcrie~ rnan~gcm~nt to m~k~ th~: Yet, in ~pit¢ of ~,~ ~u¢¢~$~, remit long-~ta~din~ ¢onfli¢~ r~min unr~olv~I. , Th~ sllocstion of' salmon betWeen commercial and sport users in Cook InI~t is at the forefront oft. hose difficult issues. The various fisheries of Cook Inlet are managed under the Upper Cook Inlet Salmon Management Plan, which was first adopted by the board in 1~78. The plan, and related mana~cmen~ plans, provides an allocation f'amework based on r~e timing of the inl~'s irnporran~ salmon stocks. During some p~ods, most of thc s~lmon arc ~llocated for sport Fishing. Durin~ other periods, th~ are allocated primarily for commercial use. The Management Plan has r~maincd larg¢t¥ unchanged over thc past 17 years, ~lthout~ various sub-plans have been adopted to provide harvest guidelines for Cook Inlet salmon. What's evident is that there is no lon6er a broad public acceptance of existing , salmon allocation priorities in C0~k Inlet. Cook Inlet salmon users are t-ustrar~d. The conflicts over allocation of salmon amon§ th~se users is divisive. Alaska's fish resources should define us - no~ divid~ us. Of particular concern to mc is criticism d~ctcd at the Board of Fisheries and the Department of Fish and Game for failing to meet the demands of' sport users and person~ need. Frustrated fishermen arc starting to go around the fairest process we have in pl~ce - the board process - and are advocating political allocations of ~h r~sourccs. Some legislators are convinced that they should allocate fish by statute and some citizens ~re pushing for ~lloc.-,t/on by initiative. I think we can do better than ths. t. It's clear that a new approach is needed, on~ that is fair, open and allows for change. As governor, it would be irresponsibl~ of me not to step up to the platte. M~' vision is of sustainable fisheries which meet the needs of' all Alaskans. These fisheries must first provide sustainable and adeclu~te opportunity to put food on the tables of Alaskans. Secondly, as I said on that campaign flyer: "In allocating fish for Cook Inlet, · the.., rapidly incre~ing spore fish business must be considered." We need to r¢cognizo the multi-million dollar sport fishing and tourism industrir, s as well as the personal needs of Alaska families. The economic value of the fish must play a major part in the allocation process. Fulfilling ~is vision in Cook Inlet wi~ these obj¢ctiv~ and mca~urabl¢ prioritie~ mean~ ~at additional ~almon ~hould b~ allowed to ~nter the river~. A~ governor, it'~ not my rol~ to ~p¢cify how many, wh~ or how thi~ ~hould be a¢¢ompli~hed. That's the job and re~pon~ibiiity of' th, Boar~ of Fi~h~ri,~. I'm that Board Chairman Larry Eng¢l was able to be here today. We're fortunate that he bring~ to the tabl, both hi~ skills a~ a professional biologist and his fortitud.~ to help take on this task. , A~ lgovemo~, my role 1~ to reflect the will of AIa~ka families and I believe they want more fish in the rivers. Her~'s how I believe we can make that happen within the Board I am directing the Department of Fish and Game to contract with a third-party facilitator to do thr¢~ * One, gather and analyze e~onomic, ~¢ientific, d~mographi¢ and manag~mcm information and identify any additional information n~ed~d to improve fi~h~ri~ management for Cook Inlet and thc Kenai and S u~itn~ River drainages. * Two, f'a¢ilit, at~ di~¢u~ion~ wit~ all u~r groups, citix¢~ and Io¢~ govcmment~. Tho~ di$cu~iens will dev~lo~ idea~ and option~ to protect fisheries habitat, ensure the nce~$ary ¢~¢ap~ment, l:rovid~ for the pcr~on~l n¢~d~ of Ala~ka ~'amilie~ and maintaia pro~perou~ commcr¢ia! and ~ided ~pom fi~hin$ indu~tri~a. * Thr¢~, thc facilitator will pr~par~ · report wi~ r¢¢omm~ndation~ for improwd management of the fi~hcri¢~ of' l. lpp~r Cool{ Inl~t md i~ riv~-way$. The r~ort will availabl~ to t.h.e public and Board for ¢omid~ration in advan¢~ of the January 1996 m~tinl~ on Cook Inlet i~u~,. Th, ~¢ond part of my pl~ i~ b~acr a¢¢~. We're directing $20 million for better access and h~bitat protection - the larges~ commitrnen~ ever. Nearly $7 million i~ earmarked for the improved recreational access to the Kenai River. For example, at'Bing's Landing we'll have n~w ladders and boardwalks for better fiver access and interpretive displays. At the Pillars, we're going to build a boal: launch and dock, boardwall~, parkin~ for 75 and riv~b~ protect, ion. We also plan to ~p~nd $2 million for land acqui~kion for prot¢¢tiv~ gr~n b¢lt~ in ~ K~nai River watershed. I ha¥~ a~kcd K~nai Mayor Don Gilman to join m~ h~m today beca~ of' hi~ contribution and effo~ to prot¢¢t'th~ Kcnai River. Ia addition, both h~ and the Kenai Peninsula Borough ~¢mbl7 h~ launched a major zoning ~ffort to protect th~ K~nai l:Livcr. I understand ~om~ m~mb~'~ ar~ here today and I w~t to apptaud their · For t.h~ Mat-Su, we ar, proposing r~ereational improvemcnt~ for thc Talkecma and Su~itna riv,r~ and for Bradi~F K~ler lak~ and ~¢ L~¢ Louise State · Ama. Borough Mayor Barbara La~hcr i~ working hard to incr¢~¢ ~pon oppom.miti¢~ in th~ Mat-Su Vallcy and I'm glad ~he'~ with u~ h~r¢ at th~ head table. In .th, Anchorag, bowl, we ar~ d¢~i~at~g t14 million to ~xpand ~ Fort Kichard~on Fish Hatchery. Mayor M¥~rom'~ admi~t~tion i~ playing a k~y rol~ in ¢~anding recreational oppom.miti~a irt hi~ city and that'~ why w~ a~k~d him to join Mr¢ too. The ~our¢¢$ of' fund~ for the~¢ effort~ are f~dcral fund~ for sport fish r~toration and ~¢¢nic bTway improvement~ and criminal and civil fund~ from the Exxon Vald~ settlement. As Alaska's commissioner of Na~ Resources, John Shively i~ the steward of the riverbed ired the associated land. He'll play a key pan in protecting the habitat and providing improved acce~ to t~¢ rive~. Frank tt.ue is commissioner of Fish ~nd Game and he and his department will continue their wise management of Cook Inlet's valuable fish stocks and habitat. In addition to thc. r~¢r~ation improv~m~t~ and land acquisition, the slate will do its pat'to clean up our own house. I have directed ~e Depanmcn~ of Transportstion to move it~ maintenance [acility in Sol,oma away ~om ~o Ken~ ~ver so that salt and ~vel stored ~ere is I~ likely to end up M ~e fiv~. We dso ~11 rcdcsi~ ~~ so to~c mate~al~ don't m off ~to ~e Hver. We will ~en work wi~ public and private land o~mers to remove h~~ds to ~e river's hcal~. Our ~ird component of ~is effort is b~er edaca~on ~d coordinating ac~vitie~ of th~ m~y local, ~tato an~ fedora[ ag~nci~ ~at ~ach hav~ a SoutMen~al Al~ka'~ five~aT~. In cooperation wi~ Mayor Oiling, we r~~~ing ~o K~nai ~v~r Advi~ou Com~ee ~o a~eompli~h ~e~ * Coord~ate ~ ~ffom of ~ vmou~ g~w~ent * Updat~ ~e Kenai ~ver M~agem~t PI~ , * S~e~line ~e [~d me p=mi~ing process. We would lik, to work wi~ Mayor L~h~ to create a simil~ ~oup in ~e Mat- S~ ~ Smima D~nago ~v~r Advi~ou C0mmi~. · ~yor Oil~~ h~ t~en ~ lead in hi~ boroa~ to ~~li~h a Ken~ Crater, which will no~ only ~~e ~ a cle~~ou~e for pemi~' but ~ ~d ~tc~retive center. ~e s~te is worMng wi~ ~e Ken~ borough to expmd c~ter md construct new qumem for it. We will work wi~ school dis~icu to ~smblish education~ pro.ams in Cook ~t ~chool~ ~o o~ c~ildren ~e~er appreciat~ ~ek r~po~ibilifi~ in eonn~c~on wi~ ~e~ valu~l~ dyers. ~d a volunteer "S~e~ Watc~" proem i~ de~i~d ~ ~uc~e~ of t~i~ ~bifiou~ pm~ depen~ on wide-spread pmicipation by Al~k~ in making ~~ i~ wor~ for ev~on~ ~cted. It'~ ~o vit~ Legislature provide adequate ~din~ for habitat protection ~d ~sh~ies mmagement. Proposed budget cu~ under eonside~fion fi~t now ~ ~e Home ~d Senate would m~ it im~o~ibl~ to ~~ out ~i~ pl~. I h~bor no illu~ion~ ~at m~otu~on of ~~ critical i~a~ will bo ~7 or 7 without controversy. But I believe a resolution of these critical issues is necessary to restore public confidence ~nd ins=e f~imess and equality. It's vits/that this ve~7 sp=cial region of our state remains a sourc= of b=auty and enjoyment, that it continue to producc jobs and fish on th= dinner table of Alasksns ~'or now and for future generations. T;eas== of Si=frs Msdr¢ .... Th~ you. Z cD Z Z Z Z © © WORK SESSION NOTICE The Kenai City Council will meet in a WORK SESSION on WEDNESDAY, APRIL 12, 1995. The work session will be held at the KENM SENIOR CENTER and will begin at 7:00 P.M. The topic to be discussed is: FY 95/96 CITY OF KENM BUDGET The public is invited to attend and participate. Carol L. Freas City Clerk MEMORANDUM TO: FROM: ALL CONCERNED Carol L. Freas, City Clerk DATE: April 7, 1995 RE: BUDGET WORK SESSION WEDNESDAY, APRIL 12, 1995 At their April 5, 1995 meeting, the Kenai City Council scheduled their first budget work session for Wednesday, April 12, 1995. The work session will be held at the Kenai Senior Center and will begin at 7:00 p.m. If you have any information, other than the budget and budget memorandum which has already been distributed to Council, please fonvard it to me by 2:00 p.m. on Monday, April 10, 1995. Copies of that information will then be made for Council and distributed to them prior to the work session in order that they have time to review it. Your cooperation is appreciated. clf MEMORANDUM TO: FROM: ALL CONCERNED Carol L. Freas, City Clerk DATE: April 20, 1995 RE: BUDGET WORK SESSION WEDNESDAY, APRIL 26, 1995 At their April 19, 1995 meeting, the Kenai City Council scheduled the next budget work session for Wednesday, April 26, 1995. The work session will be held at the Kenai Senior Center and will begin at 7:00 p.m. If you have any information, other than the budget and budget memorandum which has already been distributed to Council, please forward it to me by 2:00 p.m. on Monday, April 24, 1995. Copies of that information will then be made for Council and distributed to them prior to the work session in order that they have time to review it. Your cooperation is appreciated. df 1791- 1991 CITY OF KENAI. FAX 210 Fidalgo, Suite 200 · ~~ai..Alaska 99611-7794 ~ Phone 907-283-753~ _. Fax 90%283-3014 n~oM ~ Date Number of Page~ ~ WORK SESSION NOTICE The Kenai City Council will meet in a WORK SESSION on WEDNESDAY, APRIL 26, 1995. The work session will be held at the KENAI SENIOR CENTER and will begin at 7:00 P.M. The topic to be discussed is: FY 95/96 CITY OF KENAI BUDGET The public is invited to attend and participate. Carol L. Freas City Clerk CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ 1992 MEMORANDUM TO' FROM · DATE. · RE: Mayor and Councilmembers City of Kenai Carol L. Freas, Cit~lerk. April 24, 1995 KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 Attached is information you may need for the Wednesday, April 26, 1995 budget work session. Also, I have had a request from Cherie Woods, Claudia Furlong and Kayo McGillivray to make a short presentation at the beginning of the session. Their topic of discussion will be the Kenai Recreation Center: Possible Exercise Programs, Additional Marketing, Etc. The information enclosed is as follows- A. Notes of 4/12/95 Budget Work Session B. KK memorandum and attachments regarding Public Works Budget. C. 4/24/95 Peggy Gill Thompson (Kenai Arts & Humanities Council) letter and attachments regarding Kenai Fine Arts Center. clf KENAI CITY COUNCIL 1995-96 BUDGET WORK SESSION APRIL 12, 1995 KENAI SENIOR CENTER CALL TO ORDER: The April 12, 1995 work session was called to order by Mayor John Williams at approximately 7:02 p.m. PERSONS PRESENT: Council present were- Smalley, Measles, Williams, Bookey, Swarner, Monfor (arrived at 7- 15 p.m.) and Bannock (arrived at 7:30 p.m. ) Staff present: Freas, Graves, McGillivray, Morris, Brown, Ernst, Porter, DeForest, Manninen, Kornelis and Burnett. Others present: Clarence Ladd, Ethel Clausen and Kim Booth. DISCUSSION: KENAI RIVER DISCUSSION Mayor Williams reviewed the remarks made by Governor Knowles during the Anchorage Chamber of Commerce luncheon on Monday, April 10, 1995. A copy of the Governor's speech, along with the Governor-approved projects on the Kenai River were distributed to Council with their packets of back-up information for the budget work session. Williams stated the intent of the Governor is to allow more fish into the River and save the habitat. Williams asked Council if they should address the Governor by letter as to the City's feelings about the intent of his plan. What the Governor is proposing is the very issue the City has put before the Assembly in regard to the overlay ordinance. The ordinance itself cannot correct the habitat degradation when other sources are increasing the problem. Bookey stated he was amazed at the Governor's comments. The Governor went a different direction than what he expected. Bookey added he does not understand how more fish can be added to the River and the River be maintained. He understands the importance of tourism to the area, but commercial fishing is very important to the area also and cannot be overlooked. Williams reported during discussions he had with Mayor Gilman, Gilman stated he did not think the ordinance would come for a vote anytime in the near future. Williams added, he believed the City will have to keep their attention on the ordinance. On Tuesday night the Assembly will have another work session (5:00 KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 2 p.m.). The purpose of the meeting is to discuss the issue of the lower five miles of the river. Assemblyman Navarre has come to realize that the lower five miles will be a problem if he continues to force it. Williams also reported another attorney is drafting an opinion in regard to the ordinance. The ordinance that was passed in 1984 was for zoning powers. The Assembly cannot go around that ordinance without rescinding it or modifying it in order to enact the overlay ordinance. Williams added he wanted to insure that he and the Council are all going in the same direction in regard to the overlay ordinance and asked whether he should respond to the Governor. Swarner stated it should be stated the Council is responding because of the economical value of the fishing and the fallacy of putting more fish in the river being good for the river. There should be a lot of thought put into the response. Williams stated he would respond to the Governor and requested councilmembers, staff, etc. attend the Assembly work session on Tuesday. Williams stated he discussed the matter with some of the Assemblymembers and feels there are four possible "no" votes -- Glick, Merkes, Brown and Wiley. He also believes the Mayor would veto the ordinance. Monfor asked, when talking about voting against the ordinance, is that forever or until the City of Kenai is removed from the ordinance? Williams answered to stop the entire process and if that is not possible, to amend the ordinance to remove the City from it. Williams added the Governor is planning to name a new Kenai River management group and the council should be prepared to recommend persons for placement on it. BUD(~ET: Williams suggested setting aside the major item discussion (items which would make a major change in the City's services) and begin KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 3 with the reviewing of the city manager's budget memorandum. Williams noted though he hates to see the equipment reserve go down, it is in keeping with the council thinking. Manninen stated in staff discussions, in preparation of the budget, some of the expensive items were moved into other years or taken out of the budget altogether. Without those changes, more than $300,000 would have had to be placed in the equipment reserve. The expenditures could be increased or decreased. It is up to the Council in regard to the equipment reserve. If set at one mil, they would need to add another $500,000. It may make sense to set the reserve at $1 million to take out of the General Fund and put in the reserve. 'Williams noted the main question would then be the effect on the General Fund. Finance Director Brown referred to Exhibit 5, next-to-bottom- line. If the operating budget is not raised very much this year, it would be a good year to take an extra $200,000 and put in the reserve to keep the balance up. It would be a good year as a lot is not needed to be added to the General Fund in order to balance. It depends on what Council does. Manninen added, another point would be whether the General Fund balance would be $6.8 million or $7.2 million. Brown added he did not think the fund balance decreasing. He is not concerned about the sales tax deductions as he didn't raise the estimates for next year. Williams stated he expects the decrease in payroll for oil companies will have a major impact on retail sales in the city. Brown added property values are increasing. Nothing he's seen so far makes him worry. Williams stated he would go ahead and accept the recommendation to move on the heavy equipment as shown without increasing the reserve, holding some purchases, or increasing the reserve. Council questions regarding the heavy equipment would be held until after the rest of the budget was discussed. Manninen added he requested department heads to put together a memorandum and video for council review in regard to need for heavy equipment replacement, etc. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 4 WATER WELL STATUS Monfor questioned the water well status. Manninen reported the City received the tests on the aquifer. The water is good. Now they have to get in and develop the well and have money to develop and hoOk it to the system. The new well should be hooked up and going next year at this time. Manninen added the Thompson Park money can be used for the well and two or three outhouses (park and beach). They hope to also receive $1 million from the State and $200,000 from the Governor's Capital Grant and money from the Thompson Park project. $2.75 million will be needed for the well. Williams reviewed the remainder of the budget memo. Williams stated it was a credit to Administration and the Finance Department for presentation of budget figures as they are. There is a projected appropriation of fund balance of $30,000 in comparison to the $685,993 last year. Brown warned not to gloss over the fact that a large portion of the budget is being transferred from other funds within the City, i.e. central administration is all of City Hall; $250,000 transferred from Airport to the Fire Department; and some is internal entry. The transfers were discussed. STREET MAINTENANCE: Williams asked Kornelis if there were any major problems with street maintenance, i.e. dust control, etc. Smalley reported he has heard lots of nice comments about the streets. Smalley also noted the Recreation Center parking lot has lots of large holes. Kornelis stated the will have to cut into them to patch them. Williams noted sunken manholes on Aliak and Lawton. BOAT FACILITy :,, Brown noted the retained earnings does make a difference. They are slowing working down to zero. CON~RE~]%TE HOUSIN~ RESERVE FUND: Brown reported by the end of FY 95, he expects the reserve to be about $190,000. This budget calls for adding more. Williams added that would place the reserve at about one-half of the goal of $500,000. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 5 BREAK TAKEN: 8: 00 P.M. BACK TO ORDER: 8:15 P.M. CITY CLERK BUDGET: Council discussed the request for funding to purchase a document imaging system. The Clerk's budget included costs for network · software and the system. Freas explained she has discussed the possible purchase with a company in Anchorage who worked with the City of Homer and Homer Electric Association, Inc. in finding the right system for their needs. Freas added there will be a lot of discussion, survey of needs, etc. prior to any purchase. Councilwoman Swarner added she discussed the matter with Scott Kraxberger at the Kenai Peninsula College. He stated he would review information if needed also. APPROVED. KENAI VISITOR CENTER: Councilwoman Monfor requested this budget be discussed at a later date as the President of the Board was unable to attend. BUDGET HELD FOR NEXT WORK SESSION. LEGISLATIVE: Donkey Engine - Williams discussed his desire to bring the donkey engine from across the Inlet and where to place it. Williams added it could be included in the walking tour of Old Towne. Williams suggested the lawn behind the old City Hall building. Williams added he requested Kornelis to estimate the cost for a shed-type cover for the engine, plus the concrete pad. Williams requested $25,000 be added to the budget for this project. Measles suggested the money be placed in the Parks & Recreation budget. CONSENSUS WAS TO PLACE THE $25,000 IN THE PARKS & RECREATION BUDGET. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 6 City Brochure - Councilwoman Monfor suggested a new brochure be developed in conjunction with the Visitors Center and/or the Kenai Chamber of Commerce. Monfor suggested pictures be taken in July and August. The brochure could be used to promote the City, using it for handouts, etc. CONSENSUS OF COUNCIL WAS TO ADD $15,000 TO LEGISLATIVE PRINTIN~ 'AND BINDIN~ FOR DEVELOPMENT OF A CITY BROCHURE. City Video/Russian Dubbed - Williams stated he would like to have a few copies of the city video made with Russian dubbing. NO CHANGE. Miscellaneous/AK Municipal League Conference - Swarner suggested removing the $1,000 placed under Miscellaneous. The $1,000 was added in the budget for last year's AML Conference reception which was held in Kenai. REMOVE THE $1, 000. Kenai Peninsula Caucus - Swarner stated she would like to take the Caucus dues out of the budget. Williams stated he would support the Caucus dues. NO CHANGE. COUNCIL APPROVED WITH ADDITION OF $15,000 TO PRINTIN~ AND BINDIN~ FOR BROCHURE COSTS. CITY ATTORNEY: Graves explained the additional $50,000 in his professional services budget was an estimate for upcoming costs in regard to Inlet Woods litigation, etc. Some of the additional costs has to do with strategy and he could not discuss that at this time. Williams asked if there would be additional costs in regard to possible overlay district litigation. Graves stated no. Most of that would be done in-house. Graves also explained the additional cost for his books budget was to replace 60-70% of his books with CD-ROM. The initial costs will be greater, however, the updates will cost less. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 7 COUNCIL APPROVED BUDGET AS PRESENTED. CITY MANAGER: Williams stated his concern Manninen's travel budget would be too low. Manninen stated he felt comfortable with the amount requested. If needed, he could ask for more from council from contingency. He anticipated the money included would cover his next year's travel. Manninen added he believed his was a workable budget. COUNCIL APPROVED BUDGET AS PRESENTED. FINANCE DEPARTMENT Williams noted the Finance Department's travel budget was $500 higher. Brown explained he uses most of the budgeted funds for his employees to get additional training. Brown also noted he made a mistake in his budget. Brown requested an additional $1,000 be placed in his miscellaneous budget for contract billing of ambulance fees to Medicaid and Medicare. Brown stated he had not anticipated Council's approval of instigating ambulance fees. COUNCIL APPROVED THE FINANCE DEPARTMENT BUDGET AS PRESENTED AND WITH THE ADDITION OF $1,000 IN THE MISCELLANEOUS ACCOUNT FOR CONTRACT BILLING. AIRPORT LAND: No discussion. COUNCIL APPROVED THE AIRPORT LAND BUDGET AS PRESENTED. NON-DEPARTMENTAL - ~ENERAL FUND: Williams noted this budget was raised by $25,000. Brown reported that was for insurance costs, replacement of the small copier and purchase of the telephone system. Brown stated it would be cost effective to purchase the system at this time. COUNCIL APPROVED THE NON-DEPARTMENTAL/~ENERAL FUND BUDGET AS PRESENTED. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 8 PL~NNIN~ & ~.ONIN~: Kornelis explained the advertising account was raised as the funds received for purchase of building permits are not placed back into their account. Brown explained the way it had been done was not correct. Those funds received need to go to revenues and has no effect on the net operation. Smalley asked if the Townsite Historic Survey costs should be included in the printing and binding budget. It was noted those costs would be out of this year's budget. Kornelis added they have to have the funds committed by June 30. NO CHAN~ES. COUNCIL APPROVED THE PLANNIN~ & ZONIN~ BUDGET AS PRESENTED · POLICE DEPi%RTMENT.' Chief Morris explained changes to his budget were reflected in a difference in PERS and the addition of two automobiles in the Machinery & Equipment account. Williams asked if the computer system had been transferred. Morris explained they have updated four of the computers in dispatch and they are doing well. Bookey asked if Morris saw any impact on the overtime situation with the expectations of additional dipnetting and fishermen to the River. Morris stated he was satisfied with the amount in his budget. If more is needed, he would come back and explain where it was spent. Williams requested Administration to briefly assess the impact on the City in regard to the anticipated use of the river because of closures of other rivers. Measles added it is another form of unfunded mandates. Williams would like the information for inclusion in his letter to the ~overnor. Morris added one of the officers will be involved in a ten-week program aimed at junior high-aged children. He did not believe there would be an impact on the officer's other duties. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 9 COUNCIL APPROVED THE POLICE DEPARTMENT BUDGET AS PRESENTED, EXCEPT FOR LARGE EQUIPMENT PURCHASE REQUESTS WHICH WILL BE DISCUSSED AT A LATER DATE. FIRE DEPARTMENT.' Chief Burnett explained his budget had been increased by $3,000 to accommodate for transportation for training on new equipment. Also there is a small increase for impact bottle replacements. COUNCIL APPROVED THE FIRE DEPARTMENT BUDGET AS PRESENTED, EXCEPT THE LARGE EQUIPMENT PURCHASE REQUESTS, WHICH WOULD BE DISCUSSED LATER. COMMUNICATIONS Chief Morris explained the Operating & Supplies budget changed because they divided out the costs between the Police and Communications. Williams questioned the decrease in the Small Tools account. Morris stated he believed it to be okay. COUNCIL APPROVED THE COMMUNICATIONS BUDGET AS PRESENTED. ANIMAL CONTROL: Councilman Smalley suggested the budget may need to reflect an impact the amount of additional fishermen may have when bringing their pets, etc. Williams asked where the building maintenance was included. Kornelis explained all building maintenance costs were included in the Buildings budget. Bookey suggested repairs and maintenance be discussed later. COUNCIL APPROVED THE ANIMAL CONTROL BUDGET AS PRESENTED. PUBLIC WORKS/ADMINISTRATION: Kornelis explained there was a big change in machinery and equipment. The other items are those requiring OSI~ training for the coordinator, etc. The Engineering Technician and the City Manager did the budget for safety costs. The budget began at $30,000 and has now been reduced. They plan to bring in instructors which will decrease the cost for transportation, etc. KENAI CITY COUNCIL BUDGET WORK SES S ION APRIL 12, 1995 PAGE 10 COUNCIL APPROVED PUBLIC WORKS/ADMINISTI~%TION BUDGET AS PRESENTED. SHOP Williams noted the maintenance and repair budget was decreased from last year. Kornelis explained last year there were specific items needed (generator work, crash truck work, Caterpillar 966). The $25,000 in this budget is a guess. There won't be as many specific items in the budget this year. They are requesting funds to develop a shop trailer which would be pulled behind a truck to respond to emergencies. The trailer would be equipped with safety gear, oil spill gear, etc. Bookey asked if this was needed due to OSHA regulations. Kornelis stated no. Bookey stated he was not comfortable with the $25,000 for the trailer. The trailer may be duplicating what is already available at the Fire Department. Kornelis explained the trailer would be equipped with barricades, shovels, etc. Burnett added his Department has only a minimal amount of this type of equipment. Kornelis added the trailer would also be equipped with vests, ditch digging equipment, a generator, heater, pumps, and it would serve as a warming area for personnel. Burnett added the Fire Department could utilize the equipment as well. Bookey stated he would want it to stay maintained at all times. Kornelis stated he already thought about that. Swarner asked if there was enough money for maintaining the new equipment that the city has and training for the care of it. Kornelis answered he is really more concerned about maintaining the older equipment. Kornelis stated he felt there was enough included in the budget to cover transportation and costs for training. Swarner added she wanted to be sure there was enough money included in accounts for necessary training. COUNCIL APPROVED THE SHOP BUDGET AS PRESENTED. STREET MAINTENANCE: Williams noted a large increase in Machinery & Equipment. Kornelis answered a large amount of the increase was for a KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 11 snowblower. Kornelis added he would have back-up information and a video for another work session. Kornelis added there is a also OSHA mandatory training included in this budget. COUNCIL APPROVED THE STREET MAINTENANCE BUDGET AS PRESENTED. BUILDINGS: Kornelis reported he received a memorandum from the Building Inspector requesting an amount of $222,900 for needed building repairs ~and maintenance. The city manager has decreased that budget to $82,000. McGillivray stated his concern there should be more funds included for roof repairs. There are a lot of items he felt should be done which were cut out. There are other repairs needed than just roofs. Williams asked for specific items felt needed. Kornelis answered- carpeting replacement in the library and City Hall; OSHA-requried lighting and roofing at the Animal Control Shelter; tile replacement in the entry way at the Senior Center; roofing on a number of buildings; Rec Center carpet replacement; re- coating of the gymnasium floor, etc. Williams suggested Administration put lots of money in rolling stock. Maybe next year money will need to be included for major maintenance of buildings. Manninen stated he is finding out they may need work to be done on the Fine Arts Building and the Flight Service Station. All the buildings need roof repair or heat/ventilation systems. Williams stated he does not want to let the building get too far along before doing necessary maintenance on them. COUNCIL APPROVED THE ADDITION OF $4,500 FOR RECOATIN~ THE RECREATION CENTER ~YMNASIUM FLOOR. Williams stated he thought it was the Arts group's responsibility for maintaining the Fine Arts Center. Monfor stated she felt it was the city's responsibility to repair the roof. Kornelis stated they estimated the cost to repair the roof would be $22,000. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 12 Kornelis added there are other big problems with the building. A short discussion followed. Council and Kornelis discussed the foundation problems with the building, etc. Council stated their concerns of putting a lot of money into repair of the roof when the foundation was falling away. KORNELIS WAS REQUESTED TO BRIN~ FORWARD ADDITIONAL DETAILED INFORMATION OF REPAIRS NEEDED TO THIS BUILDIN~ AND OTHER CITY BUILDINGS. STREET LIGHTS: Councilwoman Swarner stated she would like additional street lights placed within the City. Those areas suggested for placing additional lights were: The stretch between Tinker and Lawton and Deepwood Court. Freas asked if additional lights will be needed if the addition to Woodland goes forward? Kornelis stated he has been working with HEA in regard to the City's maintenance agreement. HEA wants out of it. Kornelis added he believes something will be worked out. However, HEA will be insisting on metering the street lights. KORNELIS WAS REQUESTED TO BRIN~ TO THE NEXT WORK SESSION THE COST FOR PLACEMENT OF TEN STREET LIGHTS. LIBRARY: DeForest reported her big computer needs replacing. The hardware is outdated and after next year, the company won't support the system. New hardware will be needed and the programs on the computer now will need to be transferred. UPGRADE IF POSITIONS Councilwoman Monfor reported two department assistants are at a Range 3 which is equivalent to the Recreation Center level and the skill needed for the department assistants warrant a Range 7 which would be an additional $1,000 (a month) for each. Councilwoman Monfor and Councilman Smalley supported the changes. Monfor added one of the persons takes over the Librarian's position when she is out of town. The department assistant positions are comparable to a City Hall secretary position. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 13 McGillivray stated his concern of the statement (made by Councilwoman Monfor) that his worker only sits and answers the phone. There is more involved. Monfor apologized and stated she meant that the scope of work at the library may be more complex, i.e. computer knowledge, etc. Monfor added, perhaps changes needed to be made in other departments as well. Swarner agreed. Manninen stated that if ranges are changed selectively, that could make things worse. There are other departments that have requested similar range changes. He did not recommend any changes. Manninen explained there are some employees who are at the top of their range and their pay classifications are frozen, other than COLA raises. Approximately 1/3 of the employees receive step raises every other year and approximately 1/3 of the employees are working through their steps. Monfor stated that was not a fair evaluation. What Manninen was saying and what she was discussing were two different items. The library positions she was discussing (and others as well) are positions where the scope of the work has changed. It is the Council's responsibility to make those types of decisions, however, for years the department heads have been told by Administration that their requests would not be taken to Council. Council has no way of knowing without that information being forwarded. The City does not have a merit raise and the workers are not rewarded. In these two jobs, the scope of the work has changed dramatically. The employees in those positions should not be stuck there. It's not their fault. If other department heads feel the same about some of their employee's positions, they should state it. The Council will take the heat. Manninen stated nobody was saying Council couldn't make changes. He is saying, be warned when they are doing it. Monfor stated it may need to be done because the position's scope has changed and it is no longer the same position. If the employees have the same type of responsibilities as another level, why not move them up to that level. They do not need to reclassify, but move them to the level of scope for the position. Bookey agreed with Monfor, however, there are more employees out there and if Council looks at one position, they need to review them all. Monfor stated she did not disagree with that. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 14 Smalley reminded Council that they changed one position during a budget session because the job duties changed and the employee was given an increase. Williams asked Brown if a person is hired at a specific range because of the job requirements and the job requirements change considerably from those that person was hired for, should their job classification change with the position? Brown stated he was not qualified to answer that question. Bannock stated he agreed with Bookey in that if Council wants to look at classifications, he would rather look at all employees and make any necessary changes as opposed to individual department levels. There may be other position changes as well. Bannock added he felt it would be dangerous to make changes in one department and not look at other departments as well. Monfor stated the City's most valuable resource is its employees. Monfor added she did not disagree with adding new personnel, but thinks it is time to look at pay ranges. There may be Range 3's that should remain there, but there may be some that should be higher. Williams noted it has been ten years since the Council had a professional study done. However, he did not know if another professional study would need to be done. Perhaps an in-house review could be made. Monfor stated a position could be reviewed as what was required in that position when filled compared to what is required of the position now. Williams asked if it is necessary to re-advertise positions if they are reclassified. Brown stated that has never been done. Councilman Measles suggested a review be done separate from the budget, after the budget is closed and completed. Measles suggested Council direct Administration to review all the city positions and bring back recommendations after July 1. It was asked if he was suggesting to review all the Range 3's within the City. Measles answered no, Administration needs to take an overview of the whole roster and see if there are inequities there. Some will stand out. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 15 COUNCIL CONSENSUS: ADMINISTRATION SHOULD REVIEW ALL CITY POSITIONS AND LOOK FOR INEQUITIES. THE STUDY SHOULD BE COMPLETED AND PRESENTED TO COUNCIL AFTER JULY 1. ADJOURNMENT Council adjourned the work session at approximately 9-50 p.m. At the next work session, Council will begin with the Recreation' budget. The date of the next budget session is to be set at the April 19, 1995 council meeting. Notes transcribed and submitted by- Carol L. Freas, City Clerk MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Williams and City Council Tom Manninen, City Manager Keith Kornelis, Public Works Director April 24, 1995 Council Work Session - Public Works Budget Attached are the following equipment justifications memos for Public Works M & E: le 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. P.W. Admin - 4 x 4 Utility Vehicle, replace AD-4 Shop- 1 Ton Flatbed, transfer SH01 Shop - Waste Oil Heater, replace SH64 Shop - Make Unimog ST41 back-up for new Loader Mounted Snow Blower Shop- Emergency Response Trailer Streets- Loader Mounted Snow Blower, Unimog back-up ST41 Streets - 3/4 Ton 4 x 4 Pickup, replace ST2 Streets - Forks for 966 W & S- Excavator, replace Backhoe WS30 W & S- 3/4 Ton Pickup, transfer WS01 W & S- Computer Printer I have also taken a video of some of this equipment so Council can see what it looks like. B~ Attached is the cost estimate for new street lights, including a location list of requests for them. Gl Attached is the information Council requested on the Kenai Fine Arts Building. D~ Attached is a more detailed list of Building Repair and Maintenance items. KK/kw MEMORANDUM TO: FROM: DATE: SUBJECT: Keith Kornelis, Public Works D~i~ector Jack La Shot, City Engineer~, April 14, 1995 I Budget Justification to Replace AD-4, 1981 Ford Pick-up This vehicle is now 14 years old and is basically worn out. Following is a list of reasons for replacing it. Body rust. It has a rebuilt engine in it, which needs to be rebuilt or replaced again. New vehicles have extended maintenance agreements. The mechanics recommend auctioning it as it has a clutch and standard transmission. The Parks crews are better with automatic transmissions. The replacement should be a four-wheel drive, possibly a "utility" type, and would be used as a pool vehicle for myself and others in Public Works Admin. JL/kw MEMORANDUM TO: FROM: DATE: SUBJECT: Keith Kornelis, Public Works Director Dave Reetz, Shop Foreman ~ April 18, 1995 Justification for Shop Truck Replacement The Shop truck was purchased new in 1983. It has 54,500 miles on, it at this time, and is running fine. It is a 2 wheel drive, 3/4 ton pick-up with a 1,000 lb. electric cable lift on the right rear corner and a Good-all Hot Start Unit in the front corner of the box. The hoist is no longer made by the manufacturer so parts are tough to get. I would suggest replacing it with a more current production. The Good-ali Start Unit is tired and does not produce the power it once did (when new). It keeps shorting out one side and has been worked on several times but never lasts This unit should also be replaced with a current production model of the same size. The pick-up itself would be better if it were a 4 wheel drive because we get called out to rescue senior vans from snow banks and mud holes from time to time. Also, we have occasion to go off road for equipment repairs and refueling. This truck could be given to the Parks Department and they could get rid of the 81 Ford station wagon, which is useless to them for hauling mowers, weed eaters, etc. The truck is 12 years old but Iow mileage and a good body make it worthy to transfer. The Shop needs a 4 wheel drive 1 ton flatbed with a 1,000 lb. corner hoist, a Hot Start mounted under the bed on one side, and storage on the opposite side for tools, chains, tow straps, etc. We would build our own flatbed and mount all the accessories in the shop. The pick-up would probably last the shop another few years (2 or 3) if not replaced at this time. However, time is money and that is why we would like to do it at this time. DR/kw MEMORANDUM TO: FROM: DATE: SUBJECT: Keith Kornelis, Public Works Director Dave Reetz, Shop Foreman April 24, 1995 Justification for Waste Oil Furnace The original waste oil furnace was installed in the fall of 1990. At that time we had hundreds of gallons of waste oil to burn. We have since burned that oil plus more and have had numerous problems with the system. It totally burned out the fire box in the winter of '92 and we had the whole fire box and gun assembly re-built. Since the re-build, and even before that, it takes at least eight hours of maintenance per week to keep it going to burn the oil wo now generate. The new burners and heaters are much more effective and efficient in their burning and require less maintenance. The old unit requires shop air to operate so we have to leave the main compressor on at all times. Sometimes we come in after a weekend and the compressor is running and hot because a line broke somewhere in the system. The new heater has its own built-in air system and a new improved burner system. Also, there is a local repair and warranty facility if we would have trouble. With a new furnace we could devote repair time to something else. DR/kw MEMORANDUM TO: FROM: DATE: SUBJECT: Keith Kornelis, Public Works Director Dave Reetz, Shop Foreman ,~-~-- April 24, 1995 1987 Unimog Tractor, Type 424, Model 1200 - Justification The Unimog was purchased in the fall of 1986 from Sahlberg Equipment. It had been a demo machine prior to our purchase. We got this machine with a Schmidt blower attachment and later on a front mounted broom for street sweeping. This machine replaced a loader mounted snow blower the city had bought used for snow blowing the streets and occasionally the airport. We had a lot of problems keeping this snow blower together for any length of time. The Unimog was pretty good for the first couple of years and then things started going bad with the hydraulics, snow blower head drive shaft couplings, blower head controls, blower chute, truck transmission, clutch, radiator, windshield wipers, motor assemblies, etc. it seems like the problems never stop now that they have started. It isn't that the problems are so severe, as it is that the cost of replacement parts and the time it takes to get them. There has been three different dealers in Anchorage since we bought the machine and none of them ever stocked parts. We have always had to go through the Schmidt dealer in Milwaukee, Wisconsin. The parts books are IMPOSSIBLE to read to even order parts. It take from two weeks to three months to get parts sometimes. We just went through that with the clutch and it took from November, 1994, April, 1995 to get a control lever for the blower head. The Unimog is a one or two person machine and cannot be operated by just anyone. It is a special type of truck and needs special care when operating it or serious damage does result which constitutes long periods of down time. When it is running it works very good for what it was designed for. It is easy to move around in tight places and has been handy for street sweeping intersections and parking areas. However, this is a high maintenance and high cost operating machine. used as a back-up machine for a new loader mounted snow blower. This could be DR/kw MEMORANDUM TO: FROM: DATE: SUBJECT: FOR: Tom Manninen, City Manager Keith Kornelis, Public Works Directol~'~. April 24, 1995 Justification for Emergency Response Trailer Council Work Session Budget 95/96 The purpose of this trailer is to provide immediate emergency response equipment, materials, and supplies. This would reduce down time caused by having to round up safety and oil spill or chemical spill materials for emergency jobs. It would contain safety and spill response items necessary for traffic control and night and cold weather work. A generator would power the lights on the trailer and illuminate the surrounding work area. All items would be carefully inventoried and properly warehoused. Below is a list of items for consideration in this trailer. Batteries Delineator lights Double ram shoring Duct tape Extension cords Fire hose Flagger Ahead/Men Working signs Flagger generators Lights and stands Flashlights Generator Ropes Bolts/nuts Hard hats Pigtail cords Plywood shoring Prepare To Stop signs Pump can shoring Safety vests Shoring release tool Sign flags Stands Slow/Stop signs Tim ber shoring Mops Nails Traffic cones Portable toilet Emergency beacon Ground-fault breaker Coats, goggles, boots Work bench Shelving Masks Skimmer Pump Rakes/shovels Heaters Slings/parts Public Works feels this would be extremely valuable in an emergency situation when time and safety is of the utmost importance. We need to be prepared! Thank you for considering this for our upcoming budget. KK/kw MEMORANDUM TO: FROM: DATE: SUBJECT: Keith Kornelis, Public Works Director Mark Johansen, Street Foreman ~... April 11, 1995 Eo_uipment Justification Loader Mounted Snow Blower This machine is a two stage blower to be mounted on our 966C loader. We now have a single stage blower, but this machine is not fast enough or dependable enough to handle the work load. We need an additional blower to work along with the Unimog as weather permits (between snow falls). This past winter the Unimog was down for repairs more than it was on the streets working, it's to the point now where it's getting unreliable. With our use of gates on driveways, the berms on the sides of the road are building up much faster due to the fact that we are traveling much slower and cannot cast the snow. Also, to make the gates work properly, we are having to ease away from the berm to help spill the load of snow on the grader blade before getting to a driveway. Consequently, our roads are becoming narrower much faster. We are having to do much more winging and blowing back of the snow berms. With this additional blower we will be able to do a better job of keeping the roads widened out and the sidewalks clear of snow. This past winter we had a hard time of it due to the blower being down so much and the amount of snow we had to contend with. 3/4 Ton 4 Wheel Drive Pick-up This is a replacement vehicle for ST2, which is a 1981 3/4 ton 4 x 4 six cylinder. This pick-up, although still useful, is in poor condition. It has 87,000 miles on it with numerous items that need attention. The drivers door is sprung and will not close properly; it leaks air badly, and the body is rotting out with rust. The paint is in poor condition with some minor dents in the body. This pick-up has been re-painted once already. The engine is sound, but according to the shop, the clutch, front brakes, and seat need replacement. Due to the year, mileage, and overall condition, it would not be cost effective to sink any more money into this truck. The six cylinder engine and four speed manual transmission is underpowered and not adequate for our needs. We normally do a large amount of towing heavy items, for example: steam boiler, asphalt recycler, roller compactor, etc. For this type of work we need a truck with an eight cylinder engine and an automatic transmission. As I have said earlier, this pick-up is still useful, but it is old and tired, we need to upgrade to a better truck. Forks for 966C Forks on our 966C would greatly aide us in moving large heavy objects. In the spring, and again in the fall, we have to swap out seasonal implements on our equipment. This set of forks would make our job of removing and installing sander units, water tanks (street flusher) wings for graders, plows, etc. mUch easier and safer. The shop would also be able to use them on major jobs; such as engine and transmission removal, dump body removal, etc. We now have a small set of forks for our IT28 that are in use continually, but there are many times they are not adequate. Instead of creating an unsafe condition by trying to make do with what we have now, we would be able to do our work much more efficiently and safely. I have asked for hydraulic adjustable forks so they can be adjusted by the operator from the cab instead of having to get out and manually adjust a heavy set of forks which is difficult, in the best of times. MJ/kw MEMORANDUM TO' ~eith Kornelis, Public Works Director FROM' ~--~~ Dan Young, Water & Sewer Foreman DATE' /April 11, 1995 SUBJECT: Equipment Justification Drott Hoe The existing Drott Backhoe is a 1972 model which makes it 23 years old. The city purchased it used from Doyle Construction and it has served the city woll over the years. This particular piece of equipment is not only used by the Water and Sewer Department for the repair of water and sewer lines year round; it is also used by other departments. The Street Department uses it to prepare the boat launch area for summer use, as well as installing storm drains along the roadways. The Sewer Treatment Plant also uses it on occasion. It has the reach needed for many jobs plus the winter time capability of digging frozen ground. The years of use have taken their toll on the hydraulics, engine, transmission, steering, and brakes. Upon surveying the Alaska Drott Dealer (Yukon Equipment) I have found this machine to be worth somewhere between $14,000 and $20,000. The repairs to bring this hoe back in a safe working condition would cost somewhere between $25,000 and $28,000 (and it still would be worth only $20,000). I am recommending the City of Kenai look into replacing this needed piece of equipment. There has been major advancements in the safety and efficiency of this equipment over the past 20 years, such as ROPS (roll over protection system) anti-bleed valving, increased visibility, and fuel efficiency. At this time, I feel it is in the city's best interest to invest in a new comparable hoe rather than spending a lot of money repairing the existing one. New Pick-up Truck Although the 1992 1/2 ton 2 wheel drive pick-up is still a very useful piece of equipment, it fails to meet the needs of the Water and Sewer Department. The pick-up is only usable during the summer months and only for select tasks. The vehicle is only rated for 1/2 ton and is usually carrying it's maximum capability at all times. This is before attaching any equipment to be used for field maintenance. For example: sewer jet rodder, steamer, portable welder, pumps, hydrant parts, etc. More and more hydrants and lift stations are being located in areas that are accessible only by 4 wheel drive. These are also areas that need to be accessed daily, year round. I am recommending the 1992 1/2 ton 2 wheel drive pick-up be transferred to Parks & Rec. to meet their needs for transportation and be replaced with a 3/4 ton rated 4 wheel drive pick-up. This should satisfy the needs of two departments by the purchase of only one vehicle. Computer/Printer To enable the Water and Sewer Department to stay status quo with the rest of the city, a computer has become a necessity. As of now, any data that is transmitted from the lift stations and well houses is of no use to the Water and Sewer Department. Dispatch receives the alarms which are being transmitted to an intermediate person with no data collection. These alarms should be repeated to Water and Sewer at a single point collection. The system currently is capable of sending much more information than just alarms to dispatch. With being able to monitor our systems from our worksite, we would have the ability to dispatch maintenance, produce required DEC reports, and form trends to schedule maintenance prior to untimely breakdowns. It would give the department versatility to monitor and conduct maintenance from a main terminal within the normal worksite. I recommend the purchase of a computer to link the Water and Sewer Department with its equipment operating in the field. DY/kw MEMORANDUM TO: FROM: DATE: SUBJECT: FOR: Tom Manninen, City Manager Keith Kornelis, Public Works Director,d'~'~_ April 24, 1995 New Street Lights Council 95/96 Budget Work Sessions The cost for installing a new street light varies tremendously, depending on its location and whether secondary power is available. A rough estimate is $3000 for each new light. Therefore, ten (10) new street lights would cost $30,000. Below is a list of new street light locations that have been recommended to Public Works. * 1230 Lilac Drive * S. Forest Drive & S. Stellar * McKinley & Third * Evergreen & Third * Spruce & Fourth * Dogwood & Kenai Spur * Ross Road & Kenai Spur * Set Net Drive & Seine Court * Trading Bay * Extend lights down N. Willow to Tower * Sears Elementary School on N. Forest * Deepwood Court * Lawton & Linwood KK/kw MEMORANDUM To: From' Date: Subject: Keith Komelis, Public Works Director Robert Springer, Building Official ~ April 24, 1995 KENAI FINE ARTS BUILDING ROOF After talking with some individuals who have more knowledge on how the building was constructed, I believe my initial assessment of the structural integrity of the building is in error. The design of this building allows the water on the flat roof to run off and down the face of the block walls. This creates a freeze, thaw effect on the mortar that deteriorates it. This primarily occurs at the top courses of block, and probably does not affect the structural integrity. If a roof were installed that had an overhang, which would allow the water to drop directly off the building instead of running down the side, it would probably solve the mortar deterioration problem. This would also protect the paint on the sides of the building. A local contractor gave me an estimate to install factory trusses and a metal roof of nearly $50,000, (s~ attached bid). In my opinion, installation of this roof would probably solve all future roof problems for this building. Sterclii Construction Company Dan Sterchi HC02 Box 748, Soldotna, Alaska 99669 Telephone: (907) 283.3878 £icense #~0433 April 21, 1995 CITY OF KENAI Public Works Office A TTN: Bob Springer RE: Re-Roof Fine Arts Building · Bid Specifications Frame 2 X 6 pony walls to get the entire building up to one common elevation, then truss over the entire building with factory trusses, Sheet Trusses made with 5/8 CDX plywood with 15 lb, felt. Roof with 30 gauge factory painted metal. Sheet the 3 gable ends with 5/8 T-111 siding. Re-point the masonry walls as needed. Paint the pony walls and gable ends to match building. Total Bid $48,§00.00 TO: THROUGH: THROUGH: FROM: DATE: SUBJECT: FOR: MEMORANDUM Mayor Williams and CityCouncit~. / Tom Manninen. City Manager Keith Kornetis, Public Works Director Robert C. Springer, Building Official ?..~ April 14, 1995 Roof Problems on the Kenai Fine Arts Building City Council meeting of April 19, 1995 Recently, the Kenai Arts and Humanities Council contacted Hanson Roofing to put a new hop mop surface on the roof of the Fine Arts Buildings. Hanson's attempted to do this, but could not, as the urethane insulation that is sprayed directly on the plywood roof deck is saturated with water. This will not allow a new hot mop surface to be installed. The urethane is probably saturated due to no vapor barrier installed between the urethane insulation and heated interior of the buildings wt~ich allows condensation to accumulate in the urethane. The only way to fix the roof is to have the urethane stripped off, replace any rotted decking, install a vapor barrier, re-install at least 4' of insulation and then the roof can be hot mopped again. The estimated cost to do this is approximately $22,000. The current roof is capable of possibly another year of service, as it only has some minor leaking, and could be repaired with some cold patches. However, the longer we wait to have the roof replaced the possibility of the wood dc~king under the urethane being damaged and ne~ling replacement increases. This would raise the cost of roof replacement considerably. Since this is the first time I looked at this building from a maintenance standpoint, I noted some other doficient areas of the building. The exterior concrete block wails of the building have a large amount of grout missing from between the blocks. This could create a structural problem later, if this grout continues to disintegrate. I have not been able to get a masonry contractor to look at the walls yet, but after explaining the problem to one contractor on the phone, he told me one solution to stopping the disintegration of the grout would be to have a stucco surface installed over the existing block walls. The process to do this consists of preparing the sudace by removing the paint, then applying grout in three separate coats. The cost for this is approximately $6.00 per square foot. For this building the total cost would be approximately $18,000.00. Another solution would be to scrape out each individual grout joint that is deteriorated and re-grout. This would repair the immediate problem but would be an on going project as every few years this would have to be done again when more joints deteriorate. I do not have an estimate for this since I do not know the exact amount of joints that need to be repaired. The paint covers the joints and makes it difficult to determine which joints are bad. . Page 2 Roof - Kenai Fine Arts 4/14/95 If this deterioration continues, the only way to repair this may be ~c nave the exterior walls re-built, which would be an expensive proiect. The boiler in this building is a minimum of 35 years old and will probably need replacement in the next few years. The approximate replacement cost would be $5,000.00. The electrical service is only a 100 AMP service and should be upgraded to 200 AMP. Since there are so many deficiencies which exist in this buiidina, I would think Council would want to consider whether an expenditure of this amount is'desirable or if there are other alternatives. if Council wants to replace the roof the optimum time of year for re-roofing is April and May. These are usually the driest months of the year and area roofing contractors are the least busiest. See attached photos of walls and boiler. RS/kw Kenai CUba/ hi~rical Russian Orthodox Church salmon fishing KenaiArts and l-Iumanities Council Box 822 Kenai. Alaska 99611 (907) 283-7040 April 11, 1995 Organized in 1~, , Comprises of non-profit cultural organizations. KENAI CITY COUNCIL 210 Fildaigo, Suite 200 Kenai, AK 99611-7794 KENAi FINE ART CENTER ROOF What was expected to be a somewhat simpte matter of sealing the Kenai Fine Arts Center's roof has turned into a capital improvement project which calls for the attention of the City Council. Kenai's building inspectors have investigated and/or assessed the Center's roof damage, in vain the KAHC spent $975 on the roof with thoughts that it would be durable for many years to come. According to the lease between the City of Kenai and the Kenai Arts and Humanities Council, the KAHC has maintained the Center. Attached are (1) spreadsheets documenting maintenance expense 1991-I 994 (2) expenses on roof, furnace system, and electrical lighting for 1995. In addition to maintenance, the KAHC pays ail utiiities for the Center. The Kenai Fine Arts Center is a special facility; it is the envy of Alaskan and Lower 48 visitors as it houses art activities (see Kenai Fine Arts Center brochure) not normally available in most towns---not even Anchorage. Art shows are displayed throughou1 the year. Children's classes are especially popular during the summer. The Pottery Studio is open year around. Rec~uested is that the City Council fund and oversee that a substantial roof be installed. Such will be greatly appreciated by the KAHC as welt as parents, children, tourists .... who benefit from the variety of activities at the Center. PEGGY GILL THOMPSON - PRESIDENT, KAHC Maintenance · Kenai Fine Arts Center 19,91 thru 1 994 Kenai Rrts and Humanities Council Income ........... . ...................... :.?:,,~.,,,,~x,.,~ ......... .......?.,~ ........... :::........~,,.,,,.~,~,..:~ .~ ,~_ Art Guild Potters Guild RedouDt Quilters Jail House Rock Donors Total Income , , 1991 869.05 983.85 656.65 790.43 659.40 792.00 804.01 1,142.10 380.00 260.00 5.000.00 4,620.78 5,900.63 7,131.98 175.00 ! 95.00 175.00 50.00 7.083.45 6.851.63 7,536.29 9,114.51 1 992 1 993 1 994 Totals 3.299.98 3,397.51 640.00 22,653.39 595.00 30.585.88 I Utilities Expense · : .... ~ ..... i ........... ::: --- phone HEA. e~ectricity Enstar. gas water, city Total Utilities 1991 1992 1993 1994 669.59 609.29 545.57 533.59 1.230.42 1,498.75 1,521.05 1,562.95 1.493.86 1,145.50 1,453.38 1,128.19 273.00 295.75 300.00 299.75 3.666.87 3.549.29 3,820.00 3,524.48 Totals 2.358.04: 5.813.17' 5,220.93 1.168.50 11.036.16 Special Expenses ., .,~,,.~,,..-,.,-..: insurance furnace system clean wKshop floor paint KFAC exterior display sign installed roof- 3 places patched Totals 1991 101.37 1 9 9 2 1 993 1 99 4 Totals 252.00 250.00 350.00 1,259.13 61.68 2,380.00 119.68 101.37 371.68 3,889.13 1,261.82 100.00 1,773.501 852.00 I .422.18 119.68 2.380.00 1,261.82: 100.00 6,135.68 I Helen ~vnkoop, Treasurer prepared by PeFgy Gill Thompson Msintenance Expenses · Kenai Fine A~ts Center roof, furnace, and lighting January - April, 1995 Kenai Arts ancl Xumanities Council Roof repair histo?y~ ................ -:~ ................................ 9 / 5 / 9 4 Hansen patche0 3 places 1 / 26/95 Hansen checked leak between gailerv& stua~ 4 / 6 / 95 Hansen tarnng-seating did not complete due to moisture Total 100.00 75.00 800.00 $975.00 [?n,a c_e :~y_st e,m a n d Ii _.... 3/8/95 Labor and parts furnace anc~ lights 855.76 Furnace pipe system reseaied light fixtures installed, other 3/8/95 2 outside light fixtures with 264.64 high pressure soc~ium tame 3/9/95 florescent light ballasts Dar'rs. Kenai SuDpty 52.48 Labor repairing florescent light unit. 150.00 change seaiing t~les, o[ner tecnnicai chores Total 1.332.88 Total spent on roof, furnance system, and lighting includes Seotemt~er 5. ~, 994-$100 S2,307.88 Helen Wynkoop. Treaxurer prepared by Peggy Gill 77zompson :.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.' Kenai Arts and Humaniti. es Box 822 Kenai, Alaska 99611 (907) 283-7040 April 24, 1995 Organized in 1972. Comprises of non-profit cultural organizations. Kenai CUy of historical Russian Orthodox Church salmon fishing KENAI CITY COUNCIL 210 Fildalgo, Suite 200 Kenai, AK 99611-7794 KENAI FINE ART CENTER ROOF Ref: Kenai City Council Meeting, April 19 As per your request, the Kenai Arts and Humanities Council has sought bid/proposal data on installing a new roof on the Kenai Fine Arts Center. Attached is a copy of Hanson's Roofing bid. Chumley of the Raven Company has promised a proposal which can be presented at the city budget work session, April 26, by Pottery Studio Coordinator John Rovin. Tom Wagoner, KAHC Member at Large, suggests installing trusses then a metal pitched roof. Mr. Wagoner will be available at the city budget work session to further explain his thoughts about construding a durable roof onto the Center. Attached is the KAHC's 3-Year Plan which includes a major project of remodeling the gallery, so as to display artwork in a professional mode. PEGGY GILL THOMPSON - PRESIDENT, KAHC Attachments Hanson's Roofing bid Kenai Arts and Humanities Council's 3-Year Plan Kenai Arts and Humanities Council 3-Yea r Plan Maintenance of Kenai Fine Arts Center April 26, 1995 Responsibility to City Maintain the Kenai Fine Arts Center. Perennial Arts Objectives Encourage organizations under Arts and Humanities Council umbrella to have exhibitions, workshops, classes, and demonstrations of various media and/or lectures at the Kenai Fine Arts Center for all ages. Conjunct performing arts with art productions. Maintenance Plans for Kenai Fine Arts Center 1995 1. Roof. Install trusses; add pitched metal roof. 2. Have front display signs repainted. 3. Purchase large ceiling tiles to replace water-destroyed tiles. . Heating system. Secure pipe connections so as to avoid leaks. (done) 5. Install light fixtures with luminous bulbs above front doors. (done) . Produce two brochures. (done) a. to advertise Kenai Fine Arts Center--especially for tourists. b. to supplement visual and performing art grant applicationsm give purposes of Kenai Arts and Humanities Council. 1996 1. Upgrade main gallery a. Display walls. Install plywood then wall carpet over. b. Paint wall areas not carpeted. c. Purchase more standards for sectioning off sales and the variety of media in an art show. d. Install more track lights. 2. Landscape east side of Pottery Studio. 1997 1. Install carpet in main gallery. 2. Install permanent shelves in storage room. 3. Seek monetary means to finance a Kenai Fine Arts Center director. '~'HANSON~S ROOFING 309'- Birch~St. KENAI, ALASKA 99611 (907) Ur. No. ~L~1~97 ... 0'1'~. DESCRIPTION PRICE AMOUNT ....... .. ~ _ -- ~ . ~:: . _ : ............ . _ , ......... . . ...... :~/;j ': ~ ~.~i::;-~ h. ,~...7 ........................ ........... _ ... v ~I 'rr ~I ~ TAX I ~OEIV~ BY TOTAL I 1417 All claims and returned goods MUST be accompanied by this bill. VEN April 24, 1995 Kenai Fine Arts Center BID Included in the bid price is the following- Removin~ and replacin~ current, water damaged urethane, addin~ a bonding agent to existin~ roof and resealin~ the entire roof. Installation of approximately 60 linear feet of new flashing. Removal of all debris and clean up. TOTAL LI]MP SI~ BID ...................... $13,885.00 Steve Cropsey ~ee~te~ ]~ Kenai Fine Arts Rep. RAVEN CONTRACTORS, INC. P.O. Box 490 KENAI, ALASKA 99611 907-283-2052 FAX 907-283-5081 MEMORANDUM To: From: Date: Subject' Keith Kornelis, Public Works Director Robert Springer, Building Official April 24, 1995 '--'-- BUILDING REPAIR AND MAINTENANCE ITEMS Library: The roof should be recoated this year. If this is deferred, the roof may have to be replaced, rather than recoated. I had requested the front exterior of the building be repainted, this can be deferred for another year at which time we should probably have the entire exterior repainted. Carpet replacement can be deferred until we determine if, and when the Library addition is scheduled, at which time the carpet could be replaced, to match the addition. City Hall: The roof should be recoated as there is a chance we may have to re-roof rather than recoat. The carpet in the lower level should be deferred until the entire City Hall is recarpeted, which should be done in FY 97-98. Boiler preventative maintenance should be done this summer. Visitors Center: Boiler preventative maintenance could be deferred until the summer of '96, since the boilers are fairly new. Repair of tile in the entrg should be done before further deterioration occurs. This could be scheduled for fall, after the tourist season. Animal Control: ...... This is a partial list of the most serious needed repairs. For a complete list please see memo dated 1-17-95. If a new building is to tm built we don~t neod to repair the existing building. But if no new building is planned, we should install a new roof and emergency and exit lighting. Senior Center: The boiler preventative maintenance work can be deferred until next year, since building maintenance has gone through the system in the last two years. The rear deck should be replaced, since the rotted boards are creating a safety hazard'. The concrete driveway needs to be "roughed up", or have grooves cut into it to make it less slippery during winter conditions. ^fter speaking to several local contractors who said "roughing up" the concrete would make it deteriorate faster, my initial request was to replace the concrete, if replaced, the boiler system in the Senior Center is large enough to allow the sidewalk and driveway to be heated, (as in front of the Congregate Housing and KBVCC), which is an ideal situation. Public Safety Building: The soffits should be repainted on this building, which would cut the cost of repainting to approximately $3,500. The remaining building should be repainted next year. After reexamination of the roof, a recoating wouldn't do any good at this time. My recommendation is to wait until FY 97-98 and have the entire roof, excluding the apparatus room, reroofed. The apparatus room was remofed in 1993. Carpet replacement can be deferred until FY 97/98. It is inevitable that the overhead doors must be replaced as well as the operators on the front apparatus room. The rear doors have bo~n replaced, during the bag addition in '92. This can be deferred, but the repair costs to keep these doors operating are escalating. Boiler preventative maintenance should not be delayed. The additional strain on the heating system caused by the loss of heat through the poorly insulated overhead doors requires the boilers be annually maintained. Rec Center: To get maximum life out of the roof it should be recoated. Replacement of vinyl and carpet in the Teen Center can be doferred. Repainting the exterior can also be deferred another year. The damaged sheetrock can probably be repaired by our Building Maintenance. Kayo has roquest~ roeoating the gymnasium floor, which should probably be done. Warm Storage 1- The doors of this building are badly deteriorated, but replacement can probably be d~ferred until next year. Boiler Treatment and Inspection- These are required and cannot be deferred. Fire Extinguisher Inspection and Maintenance: These are required and cannot be deferred. Elevator Maintenance and Inspection: These are required and cannot be deferred. General Maintenance: This amount could possibly be cut back, but we may have to come back to Council for additional funds later in FY 95/96, if some unforeseen problems come up. REPAIRS AND MAINTENANCE~ 4538. .- Repairs and Maintenance. Contracted repairs of buildings, vehicles, improvements, and equipment. Inspection charges and other contracted service (not professional) . Janitorial services. Monitored security for buildings. Rep - ~o~ pr~enm~= ~t~ee- ~ ...... $' 15~0 ~ C~tor~ofl~ ~~m~o-~t~~6=-, _ $ 2000 $ 5740 - . $1750 Rcpmcehoa~~stm- ~.¢~;~ ¢~' $9000 a at, R~p~e~~t of det~ora~d doo%- ~ ~~~$ 3600 ',~ ' ~ _'l'~=_rep~ ~ envy- ,.,, . $ 950 ......, _ Repaint exterior of building- partial- Replace carpet- partial- Repair damaged sheetrock- Recoat gynm floor- Warm Storage 1' Replace overhead doom & one operator- treatment & inspection fees- all buildings- $ 3250 $ 3625 $ 4500.~ Ill i 111 - 11 $~126o~ ) Elevatbr maintenance & inspection f~¢S-, -- TOTAL: ' $~20 ' Applaud printed in the PENINSULA CLARION Tuesday, April 18, 1995. -'Thanks to the KenaI Art GUild..-'- .... .... -~ giant th*ank you goes to the Kcnai ,Arr. Guild in apprecialion., of its suppo~-of...thc Kenai Peninsula Borough. School Student An and Photography Exhibit,:~:- All during April,*, the '~v'isual Celebraii0~i'' will be on display-at the Kenai'-An Guild.' '~he. guild hosts this student show entirely':rlmmgh volunteers and provides a museum quality play area for our. aspiring artists, The-gu~d- also .dedicates its. annual Chrisunas_ cra~:'.fair-- · to scholarship money for; graduating.an-sm-:; dents and will soon be interviewing the. sc s_tu- ' ;'dents;..It' is wonderful t° have this nurturing. group of talented young people. We ~/thcm on behalf of.the~ Sharon Sauqr, KENA? C~'TY COUNCIL BUDGET ~ORK SESS'rON I~Y 10~ 1995 Co CALL TO ORDER BUDGET DISCUSSION ADJOURNMENT ATTACHMENTS 1. Work Session Notice and memorandum requesting submission of information to Clerk for packet. 2. 4 / 26 / 95 Budget Session Minutes. 3. FY 96 DRAFT BUDGET -- CHANGES TO DATE. 4. FY95-96 Visitors' Center Budget memorandum requesting additional funds of $1,500 to cover additional janitorial services. 5. Public Works Budget Information- equipment justifications, maintenance and repair needs, street light information, etc. 6. Flight Service Station requests. 7. 5/7/95 C. Woods letter clarifying discussions and comments of April 26, 1995 budget work session. .WORK SESSION NOTICE The Kenai City Council will meet in a WORK SESSION on WEDNESDAY, MAY 10, 1995. The work session will be held at the KENM SENIOR CENTER and will begin at 7.-'00 P.M. The topic to be discussed is: FY 95/96 CITY OF KENM BUDGET The public is invited to attend and participate. Carol L. Freas City Clerk MEMORANDUM TO: ALL CONCERNED FROM: Carol L. Freas, Clerk May 1, 1995 DATE: BUDGET WORK SESSION WEDNESDAY, MAY 10, 1995 At their April 26, 1995 work session, the Kenai City Council scheduled the next budget work session for Wednesday, May 10, 1995. The work session will be held at the Kenai Senior Center and will begin at 7:00 p.m. If you have any informatiOn, other than the budget and budget memorandum which has already been distributed to Council, please forward it to me by 2:00 p.m. on Monday, May 8, 1995. Copies of that information will then be made for Council and distributed to them prior to the work session in order that they have time to review it. Your cooperation is appreciated. df KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 ?:00 P.M. SENIOR CITIZEN CENTER CALL TO ORDER: The work session was called to order at approximately 7-00 p.m. COUNCIL PRESENT: Williams, Smalley, Bannock, Swarner, Bookey, Measles. STAFF PRESENT: Freas, Graves, Brown, Kornelis, McGillivray, Porter, DeForest, Burnett, Morris, Manninen, and Ernst. MEMBERS OF THE PUBLIC: Kathy Schwartz, John Rovin, Tom Wagoner and other representatives of the Kenai Fine Arts Council; Cherie Woods and Claudia Furlong (exercise programs at Kenai Rec Center); Ethel Clausen; Kim Booth and Ron Rainey (Kenai Visitors Center). KENAI FINE ARTS BUILDINg: The discussion held at the April 12 work session regarding the roof problems with the Kenai Fine Arts Council (KFAC) continued with representatives from the Kenai Fine Arts making a presentation. The KFAC requested the City either replace the roof completely or make a quick fix of the roof problems. The presentation included the listing of the many activities held in the building, i.e. classes, lectures, exhibits, etc. The building is included on the historic walking tour of Old Towne. The KFAC distributed to council a copy of a three-year plan which council requested at the 4/19/95 work session. John Rovin reviewed the plan and discussed the different bids received for the different ways the building could be repaired. It was explained the damage to the inside of the building was along two walls only. The storage area, back room, office and major gallery area are not affected. Rovin reviewed the bids received for the different repairs that could be made- 1. Replacing the entire roof -- Hanson's Roofing -- $24,907.00 2. Addition of trusses and metal roof - Raven Construction-- $37,566.00. 3. Replacement of water-damaged urethan and addition of flashing where needed -- $13,885.00. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 2 Each method of repair was discussed. Williams stated Council needs to decide what direction they want to take with the building. Tom Wagoner stated, in his opinion, the best method for the longevity of the building would be to add a metal roof. The price could go lower when the project would go to bid. Wagoner stated his opinion of the second best method would be to do the "quick fix" and repair only that area which is damaged. He did not believe the roof needed to be completely torn off. Another. representative of the KFAC stated she believed it would be best to add the trusses and metal roof. The building had increased traffic last summer and she believes it will be used more this summer. The KFAC involves visitors to the community through the classes given, etc. They will be offering courses to children and adults which will be coordinated with the shows that will be presented at the Visitors Center throughout the summer. She added she believed it would be advantageous to the City to complete the visual connection between the city buildings in that area, i.e. metal roofs on the Visitors Center, etc. Rovin added they have not repainted the Walls which have been discolored from the leaks. They plan to refinish the walls and replace damaged tiles after the roof repair work is completed. Wagoner referred to the information forwarded by the Building Official as to the deterioration of the concrete block foundation. Wagoner stated he also inspected the block and felt the areas where some of the mortar has fallen out can be epoxied. There are structural cracks, but he also did not think they would be a problem. Also, he disagreed with the statement that there was only 100 amp service to the building. He believes the building is up to code, but this should be checked out. Williams restated that Council will have to decide what to do. They recognize repairs need to be made, but they also recognize they need to find funding to develop, the new water well, etc. It may be better to do a quick fix at this time and then replace the roof in the future. The discussion continued. Councilman Smalley requested an appraisal of the building. He is aware it is a well-used building, but felt that an appraisal could help them in their decision. Councilman Bookey commented the lease to the KFAC will be up for renewal in June 1995. Council will then need to decide whether to renew the lease. Bookey added, he agreed with Smalley (regarding the appraisal). KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 3 Also, he believes the work will entail more than a "quick fix." He also supports the organization, but pointed out the lease states the lessee is responsible for all care of the premises. Williams disagreed. He does not believe the care of the building includes the whole physical structure of the building. Smalley clarified his request saying he was not looking at the replacement figure, just the value of the building. He did not want to include, in the appraisal, the historical aspect either, but be aware of it. Williams asked if the KFAC has any funding to help with the costs of repair. They referred to the repairs they have made in the past at their expense and added they have been able to do those through fund-raising activities. This cost, however, is beyond them. They are willing to continue with the other maintenance. They suggested they may be in a better position to request funds if they owned the building. Swarner stated she would rather replace the roof than a quick fix, however they first need to find out if the building is worth the cost of repair. Measles agreed. Bookey stated he agreed with Smalley and suggested the city engineer inspect the building. The cost of repair could be a lot more than what they think at this time. He would be interested in putting the cost of repair into the building if they had a realistic justification and cost estimates first. Discussion continued. Suggestions were made to have the Borough assessor make an appraisal of the building and the city engineer inspect the building as to its structural integrity. Request the information be available for the June 7, 1995 council packet. Final amendments to the budget can be made at that meeting. COUNCIL REQUESTED THE CITY ENGINEER MAKE A STRUCTURAL INSPECTION OF THE BUILDING. ADMINISTRATION IS TO REQUEST THE BOROUGH APPRAISER TO F~%KE AN APPRAISAL OF THE BUILDINg. FINDINGS SHOULD BE INCLUDED IN THE JUNE 7, ~995 COUNCIL PACKET. TEN MINUTE BREAK TAKEN. KENAI BICENTENNIAL VISITORS CENTE~ Kim Booth, Executive Director of the Visitors Center made a short presentation and distributed information regarding the Center and KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 4 statistics of the visitor industry and its effects to Kenai. Booth requested an additional $25,000 from the City. $5,000 to $8,000 will be used for research and development and the remainder for a new brochure, etc. Booth added for each dollar invested in the industry, approximately $3.50 is returned through increasing employment in the private sector and creating visibility. Williams referred to hotel/motel bed tax projections and asked council if they wanted to expand their contributions to the Visitors Center. Smalley reminded council the idea behind the bed tax was to provide support of the Center. Smalley added, the support appears to be working. Ron Rainey explained a portion of the $25,000 would be to develop photos and verbiage for a new brochure. Remaining amounts would be used to include the Center on the Internet and selling Kenai to prospective visitors. He added be believes a. new brochure will be a good investment. Swarner reminded council they increased their budget by $15,000 to develop a new brochure. Can they be the same brochure? Booth answered they possibly could use the some of the same photos and verbiage, however the two brochures would be targeting different groups. Bookey and Measles agreed. Bookey stated there are two different kinds of needs. The City is looking for economic development and the Visitors Center is looking for tourism industry. Bookey added he believed the council should continue with the previous budgeted amounts ($37,000) and approve the requested additional $25,000. Williams referred to the bed tax projections. Finance Director Brown explained one of the motels owes a lot. Actual projections would be between $95,000 and $100,000. Bookey stated this tourist season is to be very heavy and next year's even heavier. The additional $25,000 will help the KVCC maintain their momentum in order to continue their success. COUNCIL DETERMINED TO ADD $25,000 TO THE VISITOR CENTER BUDGET. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 5 RECREATION CENTER: Parks & Recreation Director McGillivray introduced Claudia Furlong and Cherie Woods. McGillivray added, Furlong and Woods would like to present some ideas for marketing and increasing of revenue and at the same time would tie into the Wellness Program for the city employees. Furlong and Woods presented their request for additional equipment and upgrade of equipment. They also suggested one of the racquetball courts could be used for housing some of the equipment for a personal training area. Furlong and Woods added that doctors have prescribed certain exercises for elderly and others and with the equipment, they would better be able to help in those areas. The addition of an in-house certified trainer was discussed as well. Furlong and Woods distributed cost and income projections for different suggested programs. Circuit training classes had been offered, however without a certified instructor they no longer are offered. They would like to have an instructor on staff and have different programs available during the day at different hours. Williams asked if this would put the city in a bad position in regard to liability if they go into business offering programs in conjunction with doctors' orders. Woods answered that doctors use their judgement. At this time there is no place in the private sector for persons to walk. People are now using the Center because of doctors' orders. McGillivray added the Rec Center has not been involved in offering that type of service because they do not have a certified instructor. Smalley asked Attorney Graves if having a staff member offering prescription-type classes put the City closer to liability versus a contract person. Graves answered if the person offering the service is a city employee, the city would be more liable. Swarner asked if Woods was teaching classes now. Woods answered' no, however she uses the facility as a personal trainer with clients. She further explained she did not want to offer exercise classes through the Center because of having to handle taking the money, lack of equipment, etc. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 6 Discussion continued regarding the equipment available at the Center. McGillivray stated the Universal equipment can be traded in for new. Some of the equipment cannot be used for different age groups, etc. That piece of equipment may be outlived for the present use. The free weights are always used. He expects to be looking for different types of equipment that can be added. Bookey stated he is not comfortable with becoming a therapeutic center. Council needs to decide if they want to spend the money. McGillivray stated he would like to have someone on staff who is certified. Furlong stated the Rec Center equipment needs to be more "user friendly." The system needs to be expanded. Smalley remarked he would hate to see the racquet ball court being used for a personal training area. McGillivray explained the courts are very popular part of the year. The existing weight room really is not large enough. He thinks they could move the cardiovascular equipment into one of the courts. Williams stated if a program change is planned, council needs the specifics of the plan, costs involved, etc. and placed in the June 7 packet. Council may decide to amend the budget at that meeting after reviewing the information. Measles requested the information be reviewed by the Parks & Recreation Commission for recommendation. ACTION TAKEN: SPECIFICS OF ]% PROPOSED PLAN, COSTS INVOLVED, ETC. SHOULD BE PLACED IN THE JUNE ? MEETIN~ P/~CKET. INFORMATION SHOULD FIRST BE FORWARDED TO THE PARKS & RECREATION COMMISSION FOR REVIEW ~ RECOMMENDATION. REPORT REG/~RDING STATE BUDGET: Williams reported he received a fax from Ashley Reed late in the afternoon. An amendment was made to HR315 in regarding to the Challenger Center (Salo and Navarre have been promoting). The bill includes financing for the launch, tracking and Challenger facilities. The amendment requests a feasibility study be produced targeting the technical and financial feasibility of placing these facilities in Alaska. The amendment also directs wherever it is decided a Challenger Center could be placed in KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 7 Alaska, will have to pay a portion of the costs. The amendment has been adopted by the Finance Committee and would be discussed on the floor during the weekend. If it is found to be feasible to place a Challenger Center in Alaska, an RFP will be out requesting proposals from all areas in Alaska who may be interested in placing the Center in their community. Williams suggested the Challenger Center could be placed in the Old Carr's Mall, along with the EDD innovation center, etc., if the EDD is successful in acquiring funding to purchase the building. Manninen reported he spoke with Mike Navarre's office in the afternoon. It was reported to him that Kenai was taken out of the bill at the insistence of Anchorage and other communities. The feasibility study is still included, however. Manninen added there is no $1 million or Kenai in the bill now. Williams stated he believed the Alaska Aerospace office will be working on the acquisition of funding. He received his information at 4:35 p.m. from Reed. If things didn't change, the information he received is correct. Williams added Reed stated not to worry about the well development funding. There is still time to get that funding. Williams added he believed he would be traveling to Juneau toward the middle of the month. RECREATION BUDGET: McGillivray explained the increases in his professional services and miscellaneous were for blood screening and newsletter costs in regard to the Wellness Program. Other costs will be for additional teen dances. Also, he has budgeted for a commercial grade treadmill. Also, the ping pong table needs to be replaced and a new telephone system is needed. The system now installed is antiquated and they can no longer get replacement parts. He has also requested the purchase of a video camera to be used for different activities of the Recreation Department, Beautification, etc. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 8 Councilman Smalley asked if he considered replacement of the Universal machine discussed earlier. McGillivray answered he planned to include it next year. The pulleys and cables are okay. The machine gets heavy use. Williams noted there was less leave listed in Recreation. Brown explained leave is lower on all the budgets. In the past he always budgeted for the amount of leave earned, minus two weeks. He reviewed the last four years and found he could budget the amount of leave earned minus three weeks. The budgets can be reduced because the leave is not being used. NO CHAN(~ES TO THE RECREATION BUD(~ET. PARKS BUD(~ET: McGillivray explained the big difference in the budget was in machinery and equipment. The amount is less this year. Also, the Repair & Maintenance Supplies budget is lower because they have repaired banners and Christmas tree lights. One area that may be under, because of the amount of dipnetting now expected, is for the rental of port-a-potties and dumpsters for the parks and beach. COUNCIL AGREED TO ADD AN ADDITIONAL $1,000 TO THE PARKS BUDGET FOR RENTALS. BEAUTIFICATION: McGillivray reported there are some reductions, however Operating Supplies stays the same. There is more grass to cut, however, less cost for flowers. They are purchasing more fertilizer and lime. McGillivray added he is requesting the purchase of a new riding lawn mower. One needs to be replaced. The one he is planning to purchase has a 20 horsepower motor. Swarner asked if more funds will be needed to purchase more banners. McGillivray answered no as they have had banners repaired and they look really good. McGillivray stated they may need more for planters because of the donation of bulbs from Lynden Transport. They have also discussed the placement of a small greenhouse by the shop. He has received some different costs, however he did not place the greenhouse in the budget. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 9 Councilwoman Swarner requested the addition of a greenhouse or lean-to to the Beautification budget. One cost estimate was $10,000. McGillivray stated he believed a greenhouse could be placed by the cold storage building. There already is a gravel base there. Bob Frates had discussed the possibility of the greenhouse being built through the shop class at KCHS. COUNCIL REQUESTED SPECIFIC INFORMATION, I.E. SIZE, COST, ETC. FOR PLACEMENT OF /% ~REENHOUSE. THE INFORMATION SHOULD BE INCLUDED IN THE JUNE 7 MEETIN~ PACKET. RESERVES: To be reviewed later. BOATIN~ FACILITY FUND: Kornelis reported the operating supplies increase if gas sales and revenues go up. Also, the bid opening for the dock spaces was held. They will receive $25,000 for the spaces. NO CHAN~ES. AIRPORT TERMINAL FUND: Airport Manager Ernst reported he plans to replace all the toilets and urinals with automatic flushers. He would also like to include $6,500 for upgrading of the overflow parking area (as discussed during council meeting of April 19. The work discussed would be a temporary measure until there is a paving job going on in the city at which time the area could be paved. He will also be putting in a new lock system. When he composed his budget, he thought $2,500 would cover .the work required. He has since found his assistant will be able to do that work and requested the $2,500 be placed in operating supplies (for purchase of the locks, etc.) COUNCIL A~REED TO ADD $6,500 TO THE AIRPORT TERMINAL FUND FOR UP~P, ADE OF THE OVERFLOW PARKIN~ AREA. MOVIN~ THE $2,500 TO OPERATIN~ SUPPLIES CAN BE DONE BETWEEN BROWN AND ERNST. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 10 CONGREGATE HOUSING BUDGET: Senior Center Director Porter explained she requested one-quarter of her director's salary be taken from the Congregate Housing budget as she estimated that is the amount of time she uses to monitor the facility. Porter added she did not anticipate problems with maintenance and repair as they had last year. They have not had to take money from the contingency fund at all this year. NO CHANGES. W/%TER/SEWER REVENUE FUND: NO CHAN(~ES. W~%TER FUND Williams noted the budget is increased in machinery and equipment. Those requested items will be discussed later. NO CHANGES (MACHINERY & EQUIPMENT TO BE DISCUSSED LATER) . SEWER FUND: Requests for machinery and equipment will be discussed later. NO CHANGES (MACHINERY AND EQUIPMENT REQUESTS TO BE DISCUSSED LATER). SEWER TREATMENT PLANT Kornelis reported the operators suggested a study be done by the Kenai Community College in regard to power costs for operation of the facility. There would be no cost unless a savings could be identified over a two-year period. Measles suggested before a study is done, other communities with a similar facility (similar volumes of treatment) should be called and compare the electrical costs. NO CHAN~ES MADE. TEN MINUTE BREAK TAKEN. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 11 Williams referred to a State bid request distributed in regard to the Spur Highway project. AIRPORT LAND SYSTEM FUND - M&O: Ernst reported the largest changes in the budget were transfers out (to cover Fire Department proposal) and insurance costs. He is requesting the placement of a three-sided carport in which to park his emergency vehicle, tractor and assistant's vehicle. Ernst explained, they will better be able to attend to emergencies if their vehicles are free from snow, etc. The carport would be made of post and beam which would require no foundation. Doors could be added to the front in the future. The carport would be a 20 sq. ft. x 40 sq. ft. Ernst added, more money was included to cover costs for more gates. Brown explained how the amounts transferred out were determined. Brown stated he analyzed the costs to operate a satellite facility and came up with $250,000. Brown added the transfer was not based on the addition of three personnel. However, if council wishes to use the money for additional personnel they could. The transfer is to the General Fund and showing as revenue. , Ernst added the transfer also reflects the service the Fire Department gives to the airport. Burnett added when their proposal was compiled, the funding was for added personnel. That was going to be his explanation of how the proposal could be funded. NO CHAN~ES. AIRPORT LAND SYSTEM FUND - L~ND: Ernst reviewed the budget with council. Ernst noted $3,000 has been included for a new computer for Administrative Assistant Kim Howard. This purchase is in line with council's study and discussion during last year's budget work sessions. The entire budget is less than last year's budget. Brown explained the transfer out (accounting and legal) were combined with all of City Hall. This is because the department is so small. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 12 Ernst explained the $15,000 for roof repairs includes the Flight Service Station. Ernst was asked if repair of the FSS building would use all the $15,000. Ernst stated the Building Official review the requests of the FAA and felt that their requests are over and above what the building was originally designed. COUNCIL REQUESTED SPECIFIC INFORMATION IN REGARD TO THE FAA REQUESTS TO BE PRESENTED FOR THE NEXT WORK SESSION. THERE WERE NO CHANGES TO THE PROPOSED BUDGET. NO CHANGES. AIRPORT LAND SYSTEM - ADMINISTRATION: NO CHANGES. SENIOR CITIZEN FUNDS · . Porter explained the funds are based on what is received in grants. Like years past, this is a preliminary budget. She expects the State funding to be the same. She doesn't know what will be received from the Borough or United Way. She will bring requested amendments for this budget to the July 1 council meeting. NO CHANGES. TITLE III REVENUES: Same. NO CHANGES. CON~RE~ATE MEALS: Same. NO CHANGES. HOME MEALS: Same. NO CHANGES. TRANSPORTATION: Same. NO CHANGES. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 26, 1995 PAGE 13 PREVENTATIVE HEALTH: Same. NO CHANGES. SENIOR EMPLOYMENT: NO CHANGES. ALL DEBT SERVICES: The Debt Services were reviewed and discussed briefly. There were no changes. NO CHANGES. DISCUSSION FOR NEXT MEETINg: Review equipment. Fire Department proposal for additional personnel. Flight Service Station requests. Fine Arts Center Recreation Center Animal Control Shelter The next work session was set for May 10, 1995 at 7-00 p.m. at the Senior Center. A video machine will be needed. ADJOURNMENT: The work session ended at approximately 9-45 p.m. Notes transcribed and submitted by- Carol L. Freas, City Clerk CHANGES TO DATE FY 96 DRAFT BUDGET 5-2-95 _FROM 4-12-,95 MEETING; LEGISLATIVE-REMOVE AML CONFERENCE LEGISLATIVE-ADD CITY BROCHURE FINANCE-ADD AMBULANCE BILLING BUILDINGS-ADD TO R&M FOR GYM FLOOR PARKS-SHELTER FOR DONKEY ENGINE? 25_,.000 FROM 4-.26-e$ M~ETINI3; VISITORS CENTER-ADD TO PROMOTIONS PARKS-ADD RENTALS TOTAL C=/F CHAN(~ES~ BOTH MEETIN~ AIRPORT TERMINAL-ADD PARKING LOT IMPROV. AIRPORT TERMINAL-CHANGE $_~2 500 IN A/C'S 26.000 (1,0(X)) 15,000 1,000 4,500 6,500 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ 1992 MEMORANDUM To: Tom Manninen, City Manager -~~v~ ~/ From: Kim Howard, Administrative Assistan'- t Date: May 8, 1995 RE: FY95-96 Visitor's Center Budget While preparing the janitorial contracts for FY95-96, it came to my attention that I did not budget enough money in the Visitor's Center repairs and maintenance account. Last November, the Visitor's Center asked for (and Council approved) additional cleaning days. The contract for FY94-95 was amended, but I neglected to include the cost of the additional days in the FY95-96 budget. At the budget work session Wednesday night, please ask Council to add $1,500.00 to the Visitor's Center, Repair and Maintenance account for janitorial services. MEMORANDUM TO: Mayor Williams and City Council THROUGH: Tom Manninen, City Manager --~),~ FROM' Keith Kornelis, Public Works Director ~ DATE: April 24, 1995 SUBJECT: Council Work Session - Public Works Budget Ae Attached are the following equipment justifications memos for Public Works M & E: le 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. P.W. Admin - 4 x 4 Utility Vehicle, replace AD-4 Shop- 1 Ton Flatbed, transfer SH01 Shop - Waste Oil Heater, replace SH64 Shop - Make Unimog ST41 back-up for new Loader Mounted Snow Blower Shop - Emergency Response Trailer Streets- Loader Mounted Snow Blower, Unimog back-up ST41 Streets - 3/4 Ton 4 x 4 Pickup, replace ST2 Streets - Forks for 966 W & S - Excavator, replace Backhoe WS30 W & S - 3/4 Ton Pickup, transfer WS01 W & S- Computer Printer I have also taken a video of some of this equipment so Council can see what it looks like. Bo Attached is the cost estimate for new street lights, including a location list of requests for them. Ce Attached is the information Council requested on the Kenai Fine Arts Building. De Attached is a more detailed list of Building Repair and Maintenance items. KK/kw MEMORANDUM TO: FROM: DATE: SUBJECT: Keith Kornelis, Public Works Dkector Jack La Shot, City Engineer~, April 14, 1995 I Budget Justification to Replace AD-4, 1981 Ford Pick-up This vehicle is now 14 years old and is basically worn out. Following is a list of reasons for replacing it. Body rust. It has a rebuilt engine in it, which needs to be rebuilt or replaced again. New vehicles have extended maintenance agreements. The mechanics recommend auctioning it as it has a clutch and standard transmission. The Parks crews are better with automatic transmissions. The replacement should be a four-wheel drive, possibly a "utility" type, and would be used as a pool vehicle for myself and others in Public Works Admin. JL/kw MEMORANDUM TO: FROM: DATE: SUBJECT: Keith Kornelis, Public Works Director Dave Reetz, Shop Foreman ~ April 18, 1995 Justification for Shop Truck Replacement The Shop truck was purchased new in 1983. It has 54,500 miles on, it at this time, and is running fine. It is a 2 wheel drive, 3/4 ton pick-up with a 1,000 lb. electric cable lift on the right rear corner and a Good-all Hot Start Unit in the front comer of the box. The hoist is no longer made by the manufacturer so parts are tough to get. I would suggest replacing it with a more current production. The Good-all Start Unit is tired and does not produce the power it once did (when new). It keeps shorting out one side and has been worked on several times but never lasts. This unit should also be replaced with a current production model of the same size. The pick-up itself would be better if it were a 4 wheel drive because we get called out to rescue senior vans from snow banks and mud holes from time to time. Also, we have occasion to go off road for equipment repairs and refueling. This truck could be given to the Parks Department and they could get rid of the 81 Ford station wagon, which is useless to them for hauling mowers, weed eaters, etc. The truck is 12 years old but Iow mileage and a good body make it worthy to transfer. The Shop needs a 4 wheel drive 1 ton flatbed with a 1,000 lb. comer hoist, a Hot Start mounted under the bed on one side, and storage on the opposite side for tools, chains, tow straps, etc. We would build our own flatbed and mount all the accessories in the shop. The pick-up would probably last the shop another few years (2 or 3) if not replaced at this time. However, time is money and that is why we would like to do it at this time. DR/kw MEMORANDUM TO: FROM: DATE: SUBJECT: Keith Kornelis, Public Works Director Dave Reetz, Shop Foreman April 24, 1995 Justification for Waste Oil Furnace The original waste oil fumace was installed in the fall of 1990. At that time we had hundreds of gallons of waste oil to burn. We have since burned that oil plus more and have had numerous problems with the system. It totally burned out the fire box in the winter of '92 and we had the whole fire box and gun assembly re-built. Since the ro-buiid, and even before that, it takes at least eight hours of maintenance per week to keep it going to burn the oil we now generate. The new burners and heaters are much more effective and efficient in their burning and require less maintenance. The old unit requires shop air to operate so we have to leave the main compressor on at all times. Sometimes we come in after a weekend and the compressor is running and hot because a line broke somewhere in the system. The new heater has its own built-in air system and a new improved burner system. Also, there is a local repair and warranty facility if we would have trouble. With a new furnace we could devote repair time to something else. D~dkw MEMORANDUM TO: FROM: DATE: SUBJECT: Keith Kornelis, Public Works Director Dave Reetz, Shop Foreman April 24, 1995 1987 Unimog Tractor, Type 424, Model 1200- Justification The Unimog was purchased in the fall of 1986 from Sahlberg Equipment. It had been a demo machine prior to our purchase. We got this machine with a Schmidt blower attachment and later on a front mounted broom for street sweeping. This machine replaced a loader mounted snow blower the city had bought used for snow blowing the streets and occasionally the airport. We had a lot of problems keeping this snow blower together for any length of time. The Unimog was pretty good for the first couple of years and then things started going bad with the hydraulics, snow blower head drive shaft couplings, blower head controls, blower chute, truck transmission, clutch, radiator, windshield wipers, motor assemblies, etc. It seems like the problems never stop now that they have started, it isn't that the problems are so severe, as it is that the cost of replacement parts and the time it takes to get them. There has been three different dealers in Anchorage since we bought the machine and none of them ever stocked parts. We have always had to go through the Schmidt dealer in Milwaukee, Wisconsin. The parts books are IMPOSSIBLE to read to even order parts. It take from two weeks to three months to get parts sometimes. We just went through that with the clutch and it took from November, 1994, April, 1995 to get a control lever for the blower head. The Unimog is a one or two person machine and cannot be operated by just anyone. It is a special type of truck and needs special care when operating it or serious damage does result which constitutes long periods of down time. When it is running it works very good for what it was designed for. It is easy to move around in tight places and has been handy for street sweeping intersections and parking areas. However, this is a high maintenance and high cost operating machine. used as a back-up machine for a new loader mounted snow blower. This could be DRAw MEMORANDUM TO: FROM: DATE: SUBJECT: FOR: Tom Manninen, City Manager Keith Kornelis, Public Works Director. April 24, 1995 Justification for Emergency Response Trailer Council Work Session Budget 95/96 The purpose of this trailer is to provide immediate emergency response equipment, materials, and supplies. This would reduce down time caused by having to round up safety and oil spill or chemical spill materials for emergency jobs. It would contain safety and spill response items necessary for traffic control and night and cold weather work. A generator would power the lights on the trailer and illuminate the surrounding work area. All items would be carefully inventoried and properly warehoused. Below is a list of items for consideration in this trailer. Batteries Delineator lights Double ram shoring Duct tape Extension cords Fire hose Flagger Ahead/Men Working signs Flagger generators Lights and stands Flashlights Generator Ropes Bolts/nuts Hard hats Pigtail cords Plywood shoring Prepare To Stop signs Pump can shoring Safety vests Shoring release tool Sign flags Stands Slow/Stop signs Timber shoring Mops Nails Traffic cones Portable toilet Emergency beacon Ground-fault breaker Coats, goggles, boots Work bench Shelving Masks Skimmer Pump Rakes/shovels Heaters Slings/parts Public Works feels this would be extremely valuable in an emergency situation when time and safety is of the utmost importance. We need to be prepared! Thank you for considering this for our upcoming budget. KK~w MEMORANDUM TO: FROM: DATE: SUBJECT: Keith Kornelis, Public Works Director Mark Johansen, Street Foreman ~. ,." April 11, 1995 ' Equipment Justification _ Loader Mounted Snow _Rlower This machine is a two stage blower to be mounted on our 966C loader. We now have a single stage blower, but this machine is not fast enough or dependable enough to handle the work load. We need an additional blower to work along with the Unimog as weather permits (between snow falls). This past winter the Unimog was down for repairs more than it was on the streets working. It's to the point now where it's getting unreliable. With our use of gates on driveways, the berms on the sides of the road are building up much faster due to the fact that we are travelinq much slower and cannot cast the snow. Also, to make the gates work properly, we are ~aving to ease away from the berm to help spill the load of snow on the grader blade before getting to a driveway. Consequently, our roads are becoming narrower much faster. We are having to do much more winging and blowing back of the snow berms. With this additional blower we will be able to do a better job of keeping the roads widened out and the sidewalks clear of snow. This past winter we had a hard time of it due to the blower being down so much and the amount of snow we had to contend with. 3/4 Ton 4 Wheel Drive Pick-up This is a replacement vehicle for ST2, which is a 1981 3/4 ton 4 x 4 six cylinder. This pick-up, although still useful, is in poor condition, it has 87,000. miles on it with numerous items that need attention. The drivers door is sprung and will not close properly; it leaks air badly, and the body is rotting out with rust. The paint is in poor condition with some minor dents in the body. This pick-up has been re-painted once already. The engine is sound, but according to the shop, the clutch, front brakes, and seat need replacement. Due to the year, mileage, and overall condition, it would not be cost effective to sink any more money into this truck. The six cylinder engine and four speed manual transmission is underpowered and not adequate for our needs. We normally do a large amount of towing heavy items, for example: steam boiler, asphalt recycler, roller compactor, etc. For this type of work we need a truck with an eight cylinder engine and an automatic transmission. As I have said earlier, this pick-up is still useful, but it is old and tired, we need to upgrade to a better truck. .Forks for 966C Forks on our 966C would greatly aide us in moving large heavy objects. In the spring, and again in the fall, we have to swap out seasonal implements on our equipment. This set cf forks would make our job of removing and installing sander units, water tanks (street flusher) wings for graders, plows, etc. much easier and safer. The shop would also be able to use them on major jobs; such as engine and transmission removal dump body removal, etc. ' We now have a small set of forks for our IT28 that are in use continually, but there are many times they are not adequate. Instead of creating an unsafe condition by trying to make do with what we have now, we would be able to do our work much more efficiently and safely. I have asked for hydraulic adjustable forks so they can be adjusted by the operator from the cab instead of having to get out and manually adjust a heavy set of forks which is difficult, in the best of times. MJ/kw MEMORANDUM TO: ~'Keith Kornelis, Public Works Director FROM:-?'~,~' Dan Young, Water & Sewer Foreman DATE: /April 11, 1995 SUBJECT: Equipment Justification Drott Hoe The existing Drott Backhoe is a 1972 model which makes it 23 years old. The city purchased it used from Doyle Construction and it has served the city well over the years. This particular piece of equipment is not only used by the Water and Sewer Department for the repair of water and sewer lines year round; it is also used by other departments. The Street Department uses it to prepare the boat launch area for summer use, as well as installing storm drains along the roadways. The Sewer Treatment Plant also uses it on occasion. It has the reach needed for many jobs plus the winter time capability of digging frozen ground. The years of use have taken their toll on the hydraulics, engine, transmission, steering, and brakes. Upon surveying the Alaska Drott Dealer (Yukon Equipment) I have found this machine to be worth somewhere between $14,000 and $20,000. The repairs to bring this hoe back in a safe working condition would cost somewhere between $25,000 and $28,000 (and it still would be worth only $20,000). I am recommending the City of Kenai look into replacing this needed piece of equipment. There has been major advancements in the safety and efficiency of this equipment over the past' 20 years, such as ROPS (roll over protection system) anti-bleed valving, increased visibility, and fuel efficiency. At this time, I feel it is in the city's best interest to invest in a new comparable hoe rather than spending a lot of money repairing the existing one. New Pick-up Truck Although the 1992 1/2 ton 2 wheel drive pick-up is still a very useful piece of equipment, it fails to meet the needs of the Water and Sewer Department. The pick-up is only usable during the summer months and only for select tasks. The vehicle is only rated for 1/2 ton and is usually carrying it's maximum capability at all times. This is bofore attaching any equipment to be used for field maintenance. For example: sewer jet redder, steamer, portable welder, pumps, hydrant parts, etc. More and more hydrants and lift stations are being located in areas that are accessible only by 4 wheel drive. These are also areas that need to be accessed daily, year round. I am recommending the 1992 1/2 ton 2 wheel drive pick-up be transferred to Parks & Rec. to meet their needs for transportation and be replaced with a 3/4 ton rated 4 wheel drive pick-up. This should satisfy the needs of two departments by the purchase of only one vehicle. Corn p uter/Pri nte r To enable the Water and Sewer Department to stay status quo with the rest of the city, a computer has become a necessity. As of now, any data that is transmitted from the lift stations and well houses is of no use to the Water and Sewer Department. Dispatch receives the alarms which are being transmitted to an intermediate person with no data collection. These alarms should be repeated to Water and Sewer at a single point collection. The system currently is capable of sending much more information than just alarms to dispatch. With being able to monitor our systems from our worksite, we would have the ability to dispatch maintenance, produce required DEC reports, and form trends to schedule maintenance prior to untimely breakdowns. It would give the department versatility to monitor and conduct maintenance from a main terminal within the normal worksite. I recommend the purchase of a computer to link the Water and Sewer Department with its equipment operating in the field.. DY/kw // _.o MEMORANDUM TO: FROM: DATE: SUBJECT: FOR: Tom Manninen, City Manager Keith Kornetis, Public Works Director~ April 24, 1995 New Street Lights Council 95/96 Budget Work Sessions The cost for installing a new street light varies tremendously, depending on its location and whether secondary power is available. A rough estimate is $3000 for each new light. Therefore, ten (10) new street lights would cost ~30,000. Below is a list of new street light locations that have been recommended to Public Works. * 1230 Lilac Drive * S. Forest Drive & S. Stellar * McKinley & Third * Evergreen & Third * Spruce & Fourth * Dogwood & Kenai Spur * Ross Road & Kenai Spur * Set Net Drive & Seine Court * n ~ghts own . Willow to Tower * ~S~am._Elem~tary ~ * Deepwood Court * Lawton & Linwood KK/kw MEMORANDUM To: From' Date: Subject: Keith Komelis, Public Works Director Springer, Building Official ~ Robert April 24, 1995 KENAI FINE ARTS BUILDING ROOF After talking with some individuals who have more knowledge on how the building was constructed, I believe my initial assessment of the structural integrity of the building is in error. The design of this building allows the water on the flat roof to run off and down the face of the block walls. This creates a freeze, thaw effect on the mortar that deteriorates it. This primarily occurs at the top courses of block, and probably does not affect the structural integrity. If a roof were installed that had an overhang, which would allow the water to drop directly of[ the building instead of running down the side, it would probably solve the mortar deterioration problem. This would also protect the paint on the sides of the building. A local contractor gave me an estimate to install factory trusses and a metal roof of n~arly $50,000, (s~ attached bid). In my opinion, installation of this roo~ would probably solve all future roof problems for this building. 7' Sterclii Construction Company Dan Sterchi · HC02 Box 748, Soldotna, Alaska 99669 Telephone: (907) 283-3878 License #10433 April 21, 1995 CITY OF KENAI Public Works Office ATTN: Bob Springer RE: Re-Roof Fine Arts Building Bid Specifications Frame 2 X 6 pony walls to get the entire building up to one common elevation, then truss over the entire building with factory trusses. Sheet Trusses made with 5/8 CDX plywood with 15 lb. felt. Roof with 30 gauge factory painted metal. Sheet the 3 gable enos with 5/8 T-111 siding. Re-point the masonry walls as needed. Paint the pony walls ancl gable enos to match building. Total Bid $48,600.00 TO: THROUGH: THROUGH: FROM: DATE: SUBJECT: FOR: MEMORANDUM ,,, Mayor Williams and City Ccuncii Keith Korneiis. Public Works Director ~(,~..~5 Robert C. Springer, B uildin~ Officiai Al~rit 14, 1995 ' lding Roof Problems on the Kenai Fine Arts Bui City Council meeting of A.orit 19. 1995 Recently, the Kenai Arts and Humanities Council contacted Hanson Roofing to DUt a new ho13 mol3 surface on the roof of the Fine Arts Buildings. Hanson's attempted to do this, but could not, as the urethane insulation that is sprayed directly on the plywood roof deck is saturate0 with water. This will not allow a new hot mol~ surface to be installc~i. The urethane is proDably saturated due to no vapor barrier installed between the urethane insulation and heated interior o~ the Duil~ings which atlows condensation to accumulate in the uretl~ane. The only way to fix the roof is to t~ave the uretl~ane strit3pect off, rel3tace any rottc~t dcmking, install a val~or barrier, m-instatl at least 4' of insulation and then the roof can be hot mopped again. The estimated cost to do this is approximately $22,000. The current roof is capable of possibly another year of service, as it only has some minor leaking, and could ge repaired with some cold patches. However, the longer we wait to have the roof replaced th~ possibility of the wood dc~king under the ur~thane being damaged and n{~ling replacement increases. This would raise the cost of roof replacement considerably. Since this is the first time t looked at this building from a maintenance stand,point, I noted some ot~er d~ficient areas cf the building. The exterior concrete block walls of the building have a large amount of grout missing from t~etween the t21oct<s. This could create a structural prol2tem later, if this grout continues to disintegrate. I have not been able to get a masonry contractor to look st the walls yet, but after explaining the problem to one contractor on the phone, he told me one solution to StOl~ping the disintegration of the grout would be to have a stucco surface installed over the existing block wails. The process to do this consists of preparing the sudace by removing the paint, then applying grout in three set3arate coats. The cost for this is approximately $6.00 per square foot. For t~is building the total cost would be approximately $18,000.00. Another solution would be to scrape out each individual grout joint that is deteriorated and r~rout. This would repair the immediate prot~lem but would be an on going proi~t a~ every few years this would have to be done again when more joints deteriorate. ! do not have an estimate for this since t do not know the exact amount of joints that ne~d to be The paint covers the joints and mai(es it difficult to determine which joints art repairecl. bad. ~age 2 Roof- Kenai Fine Arts 4114195 If this deterioration continues. ",he only way ~o re,~air this may i2e ,:c nave the exterior walls re-built, which would be an exr~ensive preiect. The t~oiter in this building is a minimum cf 35 years old snd will proi2abty need replacement in the next few years. .',he a.~proximate ret~iacement ccst would be $5,000.00. The electrical service is only a 100 AMP service and should be upgraded to 200 AMP. Since there are so many deficiencies which exist in this buildina, I would think Council would want to consider whether an expenditure of this amount is~esirable or if there are other alternatives. if Council wants to replace the roof the o~timum time of year for re-roofing is April and May. These are usually the driest montl~s of the year and area roofing contractors are the least busiest. See attached photos of walls and boiler. RS/kw KenaiArts and l-lumanities Council Box 822 Kenai. Alaska 99611 (907) 283-7040 Orgam~gd in 1 Comp. r~se$ of non-pro.~t c alt ur at organizations. A0rii ~!. 1995 Kenai Ot~ CJim,~l~ KENAI C~I' COUNCIL 210 Fiidatgo, Suite 200 Kenai. AK 99611-7794 KENAt FINE ART CENTER ROOF What was expected to be a somewhat sim.ate matter of seaiing the Kenai Fine Arts Center's roof Has turnea into o camitot imlarovement project which emits for the attention of the City Council. Kenai's building ins!~ectors have investigated and/or assessed the Center's roof damage. In vain the KAHC spent S975 on the roof with thoughts that it would be durable for many years to come. Accoraing to the lease between the City oi: Kenai and the Kenai Arts and Humanities Councit, the KAHC ,~czs maintained the Center. Attached are (1) spreadsheets documenting maintenance expense 1991 - 1994 t2} exmenses on roof, furnace system, and electrical lighting for 1995. In aaaition to maintenance, zhe KAHC ~c:.vs ail utilities {or the Center. The Kenai Fine Arts Center is a saeciai facility; it is the envy of Alaskan and Lower 48 visitors as it houses art activities (see Kenai Fine Arts Center brocnurei not normaily available in most towns---~ot even Anchorage. Art shows are displayed througnou~ the year. Children's classes are especially popular during the summer. TT~e Pottery Studio is ooen year around. Reauested is that the City Council fund and oversee that a substantial roof be installed. Such will be greatly appreciated by the KAHC as welt as parents, children, tourists .... who benefit from the variety of activities at the Center. PEGGY GILL THOMPSON - PRESIDENT, KAHC Maintenance. Kenai Fine Arts Center 1 ggl tl~ru lg94 Kenai Rrts and Humanities Council Income Art Guiici Potters Guild RedouOt Quilters Jail House Rock Donors Total Income 1991 1992 1993 ~69.05 983.85 656.65 559.40 792.00 804.01 380.00 260.00 5.000.00 4,620.78 5,900.63 ~75.00 ~. 95.00 175.00 7.083.45 6.851.63 7,536.29 1 9 g 41 Totals 790.431 3.299.98 1,142.101 3.397.51 640.00 7,131.981 22.653.39 50.001 595.00' 9,114.51t 30,585.88 Utilities Expense I Il =,,ll phone HEA. e~ectricity Enstar. gas water, c:ty Total Utilities ii i i 1991 1992 1993 669.59 609.29 545.57 1.230.42 1.498.75 1,521.05 1.493.86 1.145.50 1,453.38 273.00 295.75 300.00 3.666.87 3.549.29 3.820.00 i ~,~, . i 1 9 g 4 t Totals 533.591 2.358.04 1 1,562.95! 5.813.17 1,128.19t 5.220.93 , 299.751 !.168.50 3.524.481 11.036.16 Special Expenses insurance furnace system clean WKSt~OI~ floor paint KFAC exterior display sign installed roof- 3 places oatct~ect Totals 1991 101.37 101.37 1992 252.00 !19.68 371.68 1993 250.00 1,259.13 2.380.00 3,889.13 ~4i 35o.ooi 61.68i 1,261.82 100.00 1,773.50 Totals 852.00 1.422.!8 119.68 2.380.00 1,261.82 100.00 6.135.681 Helen W\'nkoop. Treasurer prepared bx' Peggy Gill Thomt~son Maintenance Expenses · Kenai Fine Arts .Center roof, furnace, and lighting January - FIl~ril, 1995 Kenai Rrts anti Humanities Council Roof,,,rel]air hi.story ......... 9 / 5 / 9 4 Hansen Damneo 3 Dtaces 1 / 26/95 Hansen cnecKea teak eetween gmlerv & stuc~] 4 / 6 / 95 Hansen tarnng-seming did nor com~iete oue to motsture Total ,. 100.00 75.00 800.00 $975.00 Furnace system and li~.hts 3/8/95 Labor ana pans furnace aha lights Furnace pipe system resea~ect 3/8/95 3/9/95 Total light fixtures instatlecl, o:ner 2 outside lic~ht fixtures w~m high pressure so(3ium lame florescent tight ballasts Dar~s. Kena] SuDDIy Labor reoalrina florescent ':tnt umw. ,,, change sealing tlies, cmer 1;ecrlrllcal chores Total spent on roof, furnance system, anci lighting inctuctes Seotemt~er 5. ', 994-$100 264.64 62.48 !50.00 1.332.88 S2,307.88 Helen Wx.'nkoop. Treasurer prepared bx' Peggy Gill Thompson MEMORANDUM To: From: Date: Subject: Keith Komelis, Public Works Director Robert Springer, Building Official ~_~ April 24, 1995 -'-'-- BUILDING REPAIR AND MAINTENANCE ITEMS Library; The roof should be recoated this year. If this is deferred, the roof may have to be replaced, rather than recoated. I had requested the front exterior of the building be repainted, this can be deferred for another year at which time we should probably have the entire exterior repainted. Carpet replacement can be deferred until we determine if, and when the Library addition is scheduled, at which time the carpet could be replaced, to match the addition. City Hall: _ The roof should be recoated as there is a chance we may have to re-roof rather than recoat. The carpet in the lower level should be deferred until the entire City Hall is recarpeted, which should be done in FY 97-98. Boiler preventative maintenance should be done this summer. Visitors Center: Boiler preventative maintenance could be deferred until the summer of '96, since the boilers are fairly new. Repair of tile in the entry should be done before further deterioration occurs. This could be scheduled for fail, after the tourist season. Animal Control: This is a partial list of the most serious needed repairs. For a complete list please see memo dated 1-17-95. If a new building is to be built we don't need to repair the existing building. But if no new building is planned, we should install a new roof and emergency and exit lighting. Senior Center: The boiler preventative maintenance work can be deferred until next year, since building maintenance has gone through the system in the last two years. The rear deck should be replaced, since the rotted boards are creating a safety hazard. The concrete driveway net~ls to be 'roughed up~, or have grooves cut into it to make it less slippery during winter conditions. After speaking to several local contractors who said 'roughing up' the concrete would make it doteriorate faster, my initial request was to replace the concrete. If replaced, the boiler system in the Senior Center is large enough to allow the sidewalk and driveway to be heated, (as in front of the Congregate Housing and KBVCC), which is an ideal situation. Public Safety Buildin;: The soffits should be repainted on this building, which would cut the cost of repainting to approximately $3,500. The remaining building should be repainted next year. After reexamination of the roof, a recoating wouldn't do any good at this time. My recommendation is to wait until FY 97-98 and have the entire roof, excluding the apparatus room, reroofed. The apparatus room was reroofed in 1993. Carpet replacement can be deferred until FY 97/98. It is inevitable that the overhead doors must be replaced as well as the operators on the front apparatus room. The rear doors have bc~n replacc~l, during the bag addition in '92. This can be deferred, but the repair costs to keep these doors operating are escalating. Boiler preventative maintenance should not be delayed. The additional strain on the heating system caused by the loss of heat through the poorly insulated overhead doors requires the boilers be annually maintained. Rec Center: To get maximum life out of the roof it should be recoated. Replacement of vinyl and carpet in the To~n Center can be do~erred. Repainting the exterior can also be deferred another year. The damaged sheetrock can probably be repaired by our Building Maintenance. Kayo has rc~luest~ rocoating the [gtmnasium floor, which should probably be done. Warm Storage 1: The doors of this building are badly deteriorated, but replacement can probably be d~erred until next year. Boiler Treatment and Inspection: These are required and cannot be deferrect. Fire Extinguisher Inspection and Maintenance: These are required and cannot be deferred. Elevator Maintenance and Inspection: These are required and cannot be deferred. General Maintenance: This amount could possibly be cut back, but we may have to come back to Council for additional funds later in ~ 95/96, if some unforeseen problems come up. 4538 - Repairs and ~.aintenance ~4 d~~8 P ~ Contracted repairs of buildings, vehicles, improvements, and equipment. Inspection charges and other contracted service (not professional). Janitorial services. Monitored security for buildings. RcPain~ c×tcrior- partial- Flood co_at roof- kcplacc carpet-- $ 4800-'--- $37600 Hah: nooa co i' ro - arpct rcpL~ccmcnt- lower level- $ 22!0 , .._ ~ :5340 -~--~ -- ~ ~v~" ~--"~' ~ ~""- ca'z~ ', 1750 %%. Rcplacchcatir~systcm- '~,.,~.,~~ t~7 $9000 ~hc~~t of dctmora~d dodo- .~~~ ~$ 3600 . ~ R~m ~ C~:t r~hcmmt- PD- $17400 R~p~t ext~or of b~~- p~- $ 3250 R~hce c~ct - p~- $ 3625 R~~ ~ed shee~ock- ¢ ~I w,, t Z;~ $~ Recoat ~ floor- $ 4500~ Warm Storage 1' Replace overhead doors & one operator- $~150U0 ' sza&20 ' 'I~'T' A T · ii /w" tll · il /' I ! ! ! · i I : . .., MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Tom Mannin~n, City Manager Keith Korneiis. Public Works Director Robert C. Springer, Building Official April 13, 1995 AFSS HVAC System Study After reviewing the study sui2mitted to the FAA by Sverdrup Facilities, Inc. regarding the AFSS HVAC systems, i have the following conclusion: The FAA personnel are requesting upgrades of certain areas of the heating and cooling system for the Flight Service building. While there are some maintenance items to be addressed, the majority of the complaints and recommendation the study indicates, are for upgrades of systems well above the original design specifications of these systems in the building. This building was designed by professional engineers and architects for the city and should not require upgrading to a higher standard. No building code violation exists currently or existed at the time of construction. The City of Kenai Maintenance Department was not notified through work orders by FAA personnel, of any of the maintenance items listed by the study. This study is the first notification that any problem existed in these areas. The maintenance items I have identified will be repaired in a timely manner. As far as the other recommendations made in the study, I consider them upgrades of the systems, NOT maintenance items which the city is responsible for. If the FAA wishes to upgrade the building system there should be no objection as long as it is not at the city's expense. Following is my response to each item referenced in Kenai AFSS, HVAC study. Section 4.0 CONCERNS AND DEFICIENCIES (page 6- 7) and Section 2 PROBLEMS & RECOMMENDATIONS (paged 19-21) 4.0 A. and 2.1.B By the study's own admission, total supply air supplied by roof top unit is equal to air volume indicated on the original construction documents. The study suggests the air is not being distributed in the manner the FAA personnel want. Additionally, they indicate the office area supply diffusers were changed to a different type. Who changed these? City of Kenai maintenance personnel did not. Did FAA maintenance personnel? No change orders were issued during construction, which would indicate the original specified types were installed. Irregardless, the study's recommendation should be considered an upgrade of the existing system. Page 2 AFSS HVAC System Study 4/13/95 4.0 B. and 2.1C This is a maintenance item tlqe city maintenance department will repair. The repair cost is approximately $650.00. 4.0 C and 2.1.D The number of return air troffer light fixtures indicated in the study is in error. They indicate eleven, when actually, there are twenty two. This is considerably closer to the amount the study indicates is necessary for proper return air. Since a professional engineer originally designed the building for this amount of return air troffers, possibly there was a reason; possibly to create an over pressurization of this area. This should be re-evaluated to determine the original design intentions, before it is altered. 4.0 D and 2. I.E This was not originally designed into the building specifications by the mechanical engineer, possibly because balancing would be accomplished through supply air ducting and return air balancing controls would be redundant and costly. 4.0 E and 2.111.A This was the original design and it is not operating improperly, but rather inefficiently, as tho refrigeration system is used more frequently. While this change is desirable to the tenants, as it would lower operating costs for tl~em, it is not necessary for the operation of the HVAC system and would be costly to the city. 4.0 F and 2.111.B. 1 This is a maintenance item the city maintenance department will repair. The repair cost is approximately $2,000.00. 4.0. G and 2.111.B.2 This is a maintenance item the city maintenance department will repair. The repair cost is approximately $300.00. Section 2 PROBLEMS & RECOMMENDATIONS (paged 19-21) I. Air System Problems A. System Design Limitation The building HVAC system was originally designed to operate in this manner, and Page 3 AFSS HVAC System Study 4/13/95 currently is operating as designed. controls are working properly. The study done indicates the HVAC multizone This is just an inconvenience for the occupants of the building. They are desiring a different system to be designed for more accurate room control, which the study indicates would be cost prohibitive. II. Heating Problems A. Heating from Overhead The building heating system was designed in this manner as are many other buildings, and currently is operating as designed. The study indicates this cannot be resolved easily and would be cost prohibitive. The occupants of the building are desiring a different system to be installed to upgrade the building. Section 5.0 RECOMMENDATIONS AND CONCEPTS (Page 8- 9) 5.0 A.8 The humidification of the building is usually not necessary during the summer months, consequently the humidifier is shut down during the months June through September. The date of the study done was July 26-28, 1994, which would indicate the reason this item was notc~i in this study. The City of Kenai maintenance department services the humidifier on a semi-annual basis. 5.0 A.5 Repair of the roof mounted toilet exhaust fan is not necessary at this time as it is working properly. The maintenance items I have identified will cost approximately $3,000.00 to repair. To reiterate a memo I wrote to Keith Komelis on 10/6/94, I think we should have our lease with the FAA renegotiated to have FAA personnel do the maintenance on this building. They have the manpower, the greater technical expertise needed for this building, and a greater budgetary ability to maintain this building than we have. RS/kw CC: Caw Graves, City Attomey Randy Ernst, Airport Manager 4.0 CONCERNS AND DEFICIEN£'IES There have been cOtnDiait~tS by tlae t~l.~,~rat~~ ,,t'tit' ~'cF,t~'tl~ J~tck of i~tt~nidification (evidently durin~ tt~e ,.~'inter~. a~d t'e=p~rator5 t>rt>t~lc~. There t~ave been other complaints regarding overcooli~g or t~xcrl~eltt~g ~ ~t,~l~c t~l ti~e t,ccupietl area. The followin,:, observations ,,,,'ere ~ade clt,r~,, tt~e r'~tcititx' .~t~rx.'ev..-X short discussion or' ,i. ~ o each issue is inctuOed and reco~n~e~datio~.~ ~t~'e ~atle ll~ Scctlo~ 5.0 for a~y appropriate remedial action, lt~ aoditio~, a co~t ¢~ti~nat~ ~.~ ~clt~l.l~tl fear ¢~t¢1~ recommendation. It was determined tight tl~e sttppty air s't~t~e i~tlicatecl o~ the original design documents is not bein~ delivered to each rt~u~. For example, the Operations Room and Equipment Roo~n areas are bei~,g ~t~pplied with i~sufficient air flow when compared with the desig~ ctir t]t,~ ,'ate~ i~clicated u~ the original constrtlctioll doctllllelltS. Tile Or'rice areas are beiz~g .~t~t)l~ct: ~k ~t~ ,.'x,.c.,,.,, ,,t,{)l}iv itir k,,~e~t cu~npared v.,ith tile desiu~ air tlov,' ,'ate= i~ciic'cttct~ ,~ tl~c ,.,l'lglll;.i.i ,.-u~strt~ctio~ ctocuments. However. the total st~ppty air D~lll'g ~.lt.'Jl\Cl'ctl J'~y tl'~e rt~oftop ~nultizone air handling tsnit is approxil~atel.~ cqttitl tt~ tl~c ~,j~l)l.~ ;.til" x't~tu~ne i~clicatecl on the origin,ti constructio~ clocu~e~t.,,. Bo The facility is not bei~g l.~rovidcd ss ~tlI ;t~ .t!~t~rt,l~r~a~e ,.-t~lu~I~e ut' outside air for ventilat:on from the rooftop ~ttitizt)~t¢ .ti~' llit~ltll~,g t,~I~t. It wa~ determined that the return fan is rosining too I'it~t .t~ltl tl~crcl'urc. :'ctur~i~g a~i excess amount of outside a~r to the air I~andli~,z trysil. '1'1~ i'c~ulI~ ~1~ t,verpres~t~rization of the outside air economizer/return I}t~ sectit~ it~ti tlt~e~ ~ot allow the r~quired volume . of outside air to Ce draw~ i~to rt~ ~t~r Ilalldlill,.2 t~it. I~ aOditio~, the return air fan ~notor is presently op~rati~g ~ kt~ t~xcrit~ittictl ~tate. i~ t~at the electrical amperage ctraw to the l~lt~[or cxcccdh i',l' ":t,t~,,' ,.~t~lel)tate ratin~._ Ce Tile Operations Rootn is ~lot prox'~tlcd x~ Itl1 itll 'tdcqt~ttC ~t~ber o( return registers to allow the supply to be rett~n~ed tt~ tllg c..~ii~,, · , . = l>ict~tttt~ from tl~e t,ccupied space For exa~npte, of the forty air trt~'fcr li~.2t~t ~'ixtt~rc~ ~ht,tlletl i~ tl~e c:ili~g, twenty nine are uhed for St~l~ply itil'. ~'lle t)tllcr clcx c~l 'trc ttsctl r't~r retttr~ air. Typically De It was cietermined that II,ere ts ~t.~ x~. try t~.) ,.ttlltt..,t ttIc x ultt~lIe of air being returned throuut~ tl~e transtar ctuct~ located i~ l);tt't~tlt,~ ~tl)t,xc tt~e ceili~g. Therefore, it is presently ,~ot possible tt~ ballt~cc tt~c :'ctttr~' :t~rx t~tttt~c t'ro~ ;tii c)t' the occupied spaces xviti~in tl~e Cttiltli~g. 5.0 Ee The Honeywell enthalpy mixed air control system in the outside air economizer/return fan section of the rooftop multizone air handling unit is not operating correctly. Therefore, the mechanical refrigeration system installed in the air handling unit is operating even when the outside air temperature is low enough to allow the use of outside air to cool the facility. This results in excess electrical use by the rooftop multizone air handling unit and contributes to additional facility electrical energy costs. Fe The drive sheaves on the supply and return fan located in the rooftop mulfizone air handling unit have worn. This results in premature belt wear. The belts were found to be loose and slipping on the sheaves. It was determined that dirt had accumulated on the blades of the fan wheels and was causing excessive vibration of the fans. RECO~ENDATIONS AND CONCEPTS Ae Near Term Recommendations The following recommendations are placed in order of priority: lo The controls for the minimum outside air damper and outside air economizer should be replaced with a new dry bulb sensor, controller and damper operators for both the outside air and return air dampers. (4.0E) This will allow a proper control of outside air and reduce operating costs. Cost: $4,400 Action Item' Contract with the Control contractor to replace control components. The return fan located in the outside air economizer/return fan section of the rooftop multizone unit should be balanced to return the volume of air indicated on the original contract drawings. (4.0B) This will allow a proper air flow from the fan. Cos~: $ 650 Action Item: Contract with the Mechanical contractor to balance the fan. * The reference to appropriate Section 4 "Concerns and Deficiencies" indicated in parenthesis at the end of each recommendation. e The drive sheaves that serve the supply and return fans in the rooftop mulfizone air handling unit should be replaced with new sheaves. (4.0F) This will allow a proper conformity between fan and motor. Cost: $2,000 Action Item' Contract with the Mechanical contractor to replace sheaves. The supply and return fans located in the rooftop multizone air handling units should have the fan blades cleaned. (4.0G) This will allow a proper air flow distribution. me Cost: $ 300 Action Item' Contract with the Mechanical contractor to clean the fan blades. Repair the roof mounted toilet exhaust fan. has to be replaced. If repair is impossible, this fan Cost: $ 700 Action Item: Contract with the Mechanical contractor to repair or replace the toilet exhaust fan. e Additional return air registers should be installed in ceiling of the Operations Room area to facilitate the return of supply air to the return air plenum above the ceiling. Four 24" x 24" registers should be installed near the four comers of the room. (4.0C). This will allow a proper amount of return air flow in the ceiling plenum. e Cost: $ 900 Action Item: Contract with the Mechanical contractor to install registers. Use the air flow output for each room, determined from the air conditioning load calculation as a base to rebalance the entire air distribution system in the building. This output should be compared to the supply and return air volumes indicated on the original construction drawings. Any modifications required to incorporate the output from the computer calculations and original construction drawings should be indicated on the original construction documents and those marked-up drawings should be forwarded to a local Testing and Balancing Agency. The supply and return air volume to each room should then rebalanced in accordance with those marked-up drawings. (4.0A) This will allow a proper air distribution to each air distribution device. Cost: $11,400 Action Item' Contract with the local Balancing contractor to perform the air balancing. Humidification deficiencies are solved by correct and timely maintenance of' the system. Be Cost: $ 0 Action Item' Notify City of Kenai of maintenance problems. The long term recommendations are as follows' le Volume dampers should be installed in the transfer ducts installed in adjacent partitions and the dampers should be balanced to deliver the volume of return air indicated on the marked-up original construction documents referenced in item 5.0A.6 above. (4.0D) Cost: $10,100 Action Item- dampers. Contract with the Mechanical contractor to install a volume Section 2 Problems & Recommendations 1. AIR SYSTEM PROBLEMS A. System Design Limitations: The system design consists of a three zone muttizone rooftop gas fired/electric DX cooled air conditioning unit. The three zones are: Zone !' Operations Areas including Lab, Broadcast and Recording rooms. Zone 2: Equipment Areas including Equipment, Telephone,Shop, and Storage and Mechanical rooms. Zone Office areas including all offices, conference and Training rooms and Operations office area. The multizone design does not lend itself to accurate individual room temperature controt. There/ore all offices in Zone 3, for example are controlled from one thermostat which is located in the Reception area. At best this thermostat will control the hot and cold deck damper modulation to that rooms individual requirements, however, may not allow for accurate temperature control in the break room, conference room, or other areas served by this zones ductwork. If more accurate room control is desired a different system design would have to be incorporated such as VAV with perimeter heat. Additional zones could possibly be added to the existing system however this may prove cost prohibitive. It was found that the unit's multizone controls work properly. All thermostats were checked and modulation of the zone dampers was determined proper en full heat and cooling modes. The furnace operation and DX air conditi~nin§ functions were also determined to be working properly. The mixed air system however needs modification to allow cooling with outside air and minimum ventilation quantities. Refer to Contro! System, paragraph III. B. Air Volumes' It was found that the specified air volumes in the Operations and Equipment Room areas were lower than the original contract drawings indicated. The Office area volumes were higher than specified. The total air volumes, kowever were within specified quantities. The Office area supply diffusers were changed from a troffer light type of diffuser spe¢i.fied, such as that used in the Operations and Equipment area zones, to a square pattern perforated style. It is recommended that proper air volumes be determined and the system be re~alanced. C. Ventilation Rates' It was found that a very low rate of outside air was being brought into the building through the multizone unit. The return air fan was also found to be providing an excess of return air volume back to the supply fan and was overvowering the supply fan This situation x~'as not allowing the minimum o'utside air quantities to be pulled into the mixed air plenum bv the supply fan. The return air fan motor was also overloaded when in t~e minimum outside air mode. Refer to fan test data sheets for further information. It is recommended the return air fan be slowed to allow the proper ventilation rates to occur. D. Operations Area Return Air: There does not appear to be adecuate return air openings in the return air light fixtures for this area. Of the 40 light fixtures used, 27 of them are being used for supply air. The other eleven are used as return air, however it is good design to use the same number of return fixtures as there are supply. This could explain the ventilation problems in this area. It is recommended that additional return air eggcrate t,vpe return air grilles be installed in the ceiling space. E. Return Air Volume Control: There is no~ way to adjust the volumes of return air from the main duct opening through the transfer ducts located above the ceiling serving all areas. Short circuiting of the return air over the Equipment room is also occuring. It is recommended that volume dampers be installed in the Equipment room return air grilles and the transfer ducts exiting this area so proper volumes can be set for each of the Office, Equipment and Operations zones. II. HEATING PROBLEMS A. Heating from Overhead' This is a vroblem in cold climates, even in buildings with low glass areas. The difi:users in the Operations areas are good for cooling however not for heating. It is difficuit to drive the heated air to the floor where it is needed. The perforated style used in the Office areas are also designed for relatively low exit velocities, so the heated air stays at the ceiling level and does not get to the floor. This problem can not be resolved easilv. A separate hydronic heating sysfem would be recommended, however this ~vould be cost prohibitive. Gas fired . boilers could be installed in the existing mechanical room as space does exist. III. CONTROL/REPAIR PROBLEMS A. Enthalpy Mixed Air Control' The mixed air control system consists of a Honeywell Enthalpy sensor and Limit Controller. 1:~ ,,vas found that minimum outside air quantity could not be obtained with this type of control. In other words, a fixed 55 de~rees mixed air setpoint could not maintained with the vresent system. It is recommended a different control system be interface~ with t~e unit to allow free cooling to occur and minimum ventilation rates to be obtained. B. Repairs: 1. It is recommended that both the supply and return fan and motor sheaves be replaced. 'Thev have worn due to loose belts and will now cause premature belt wear. The b~lts were found to be loose and slipping on the sheaves. New belts should also be installed and properly tensioned. 2. All fan wheeis should be cieaned. It was noted that excessive vibration of the fans were o¢curing and dirt on the fan blades is suspected to be the cause of this. Pressure cleaning would be required. Mr. John Williams, Mayor City of Kenai Board Members Kenai, Ak. 99611 May 07, 1995 Dear Mr. Mayor and Council Members, I would like to express my gratitude for your allOwing me to address you at the Board Meeting on April 26. However, I had the feeling that when I left, there were some misconceptions that I would like to clear up. 1) Insurance Billing - When I brought up the word "insurance," I could see red flags going up. The insurance reimbursement would only be added incentive for people to exercise as their doctors have advised for years to help combat over-weight, hypertension, etc. There is no reason for the Rec Center to get involved with physical therapy as we have many qualified therapy centers in our area. Also, the City of Kenai would have no dealings with personal insurance, Medicaid, Medicare, or other Health Care Organizations directly or indirectly. The people would have the opportunity to file insurance claims on their own with their doctors "prescribing" their personal exercise routine. Personal Trainers do not diagnose or prescribe. 2) Having a Qualified Trainer on Staff- It was my belief that the City Council members felt that having an unqualified employee would assume less liability than if there was a qualified person on staff. I do not understand this assumption. A city employee would not tell people what to do unless they were specifically hired by said "client" to set up a personal program for them. A qualified staff member would be able to do visual checks on the set up of the weight room in order to avoid poorly placed pieces of equipment (thus avoiding added risks to clientele). They could see to daily maintenance checks on cables, bolts, etc. They could intelligently answer questions about equipment and it's usage. 3) Competition with the Private Sector- In essence the Kenai Recreation Center is already competing with the private sector; it utilizes a centrally located building, is well established with OSHA rules in place, and has a large square footage able to support large exercise classes. In addition, it has already out-lasted five private sector attempts at providing a similar service. Since the City of Kenai already has weight equipment, a basketball court, volleyball equipment, racketball courts, wallyball equipment, locker rooms and saunas, why not attempt to increase revenues? The problem, as I see it, is a lack of marketing (not everyone knows that the Rec Center isn't just for teens), and obsolete equipment. If we followed through and added a few well chosen items, it would improve the Usage by people in our community and help to generate more revenue for the City of Kenai. If the marketing failed to generate revenue as I anticipate, no financial lOss has occured, the additional weight equipment purchased is an asset which would still generate more public usage, and in time would pay for itself. 4) Scheduling and Motivation - Last but not least, a qualified staff person could creatively schedule classes to target a variety of fitness goals and personalities. Also, it has been proven that people adhere to an exercise program much better if it is organized with an instructor (and a fee) and if they feel part of a group. Lack of motivation is the number one answer given when asked why people don't use the gym to walk. Motivation is part of a personal trainer's job. I hope this letter helps to express my thoughts more clearly. Again, thank you for your time and efforts. Please contact me if you have any questions or would like further discussion. Sincerely, Cheri D. Woods Personal Trainer P.O. Box 1221 Kenai, AK. 99611 (907) 283-7832 130 SELTZER ROAn P O BOX'168 : CROSWELL. MICHIGAN 48~22,0:t.68' .- 81.02079-4400 ' FAX 810/67g~.4510 FAX PROPOSAL TO: City of Kenai, AK DATE' 4119/1995 ATTN' Steve Ramberg, Building Maint. FAX #: 907-283-7568 # OF PAGES INCLUDING THIS PAGE' 4 UNIT tUANTITY DESCRIPTION PRICE TOTAL 1 ML256BH $4,849.00 $ 4,849.00 $150.00 $ t50.00 Interbranch Charge Lot Estimated freight to Kenai, AK 99611 $1,727.69 $ 1,727.69 via Yellow Freight To Seattle = $518.10 Seattle to Kenai = $1209.59 ~c; pg 4,6,8 of ML-priced :','..:.F~ TERMS' NET 30 DAYS (Subject to Approval) FOB' Bakersfield, CA · '$'..-'e, ' :::~,:!.::~: PRICING' FIRM FOR 30 DAYS SHIPMENT' 3 Days ARO (When in Stock) ~;..-.: ~.': · '.',,.-.; ,t..' '~ANK YOU FOR THE OPPORTUNITY TO QUOTE ON YOUR [~UIREMENTS. PLEASE CONTACT US WITH ANY QUESTIONS. 810-679.4510 800-552-3337 N~JW~BI±OD dNOD r]NOO:NO~ COTTERMA~I C~3MP.ANY Marc D. Schopp Assistant Sales Manager GROUND ENTRY 25FT. PLATFOB/B HEIGHT Cotterman Co. Division of Material Control, inc. P.O. BOX 168 130 SELTZER RD. CROSwELL, MI 48422 810-679-4400 FAX 810-679-4510 TOLL FREE 800-552-3337 REACH THESE : HEIGHTS Platform heights of 13 ft., 17 ft., 21 ft., and 25 ft. permit working heights of up to 31 ft. 13' 17' 21' 25' DC MODEL ML136BH ML176BH ML216BH ML256BH AC MODEL ML136AH ML176AH ML216AH ML256AH LIFT CAPACITY 400 LBS. 400 LBS. 300 LBS. 300 LBS. OUTRIGGER BASE SIZE 54" x 58" 54" x 58" 54" x 63" 54" x 63" LOWERED HEIGHT 77Y2" 77~" 771/2'' 77Y2' SHIPPING WEIGHT 1100 LBS. 1165LBS. 1250 LBS. 1325 LBS. tterman IN OR FULL OUT ON GREN LIGHT ONLY The Maxi-Lift* with electrically inter- locked outriggers extended and prop- erly positioned. ( .- , -.. includeS the r, Easy access to the 24"x 30" ~ :, .~ platform at -~.i~_~:;.i ..~ ground level from left _.--.- '~~ or right side. . 'The cOmPaCt deSign allows easy movement through standard doorways on smooth rolling 8" phonoli¢ castors. . Operator in position ready to use the dual operating buttons. Control center in base includes a master key lock. an emergency stop button, platform motion controls, and 110V input for platform outlet power and for operation of AC models. Platform operator controls inclu,__ dual up and down operation buttons, an emergency stop button. A 110V outlet is provided for powered accessories. The large 25" .y. ~9,," work !rm has ,y guard- rails and a midrail slide open gate. Cable lift system 7 incorporates an :- emergency fall '-~ arrest mechanism. Dual ladders provide operator access to platform when extended to desired work height. Extra wide lift columns are nested for smooth operation and stability while in use. MANUAL WIN ELEVATING Standard 15 ft. platform height permits 21 ft. working height. Optional platform extender adds 4 ft. to give a platform height of 19 ft. and a working height of 25 ft. A single operator can easily move The Maxi-Lift-" from job to job on smooth rolling 8" phenolic casters. _ . , The compact design allows easy move- ment of the unit through standard door- ways. ~lic casters ' ~ment of The Maxi- ....... ... - -.. ::~: ........ --, ., .'~:~ WORK PLATFORM The Iqaxi-Lift puts you where the work is The manual winch Maxi-Lift is built tough to handle the day-to-day demands of industrial and commercial use. Getting those overhead jobs done requires a lift that is dependable - one that won't let you down. Desig. ned to be handled and operated by one worker, it rolls easily from job to job and fits through a standard doorway without alteration or disassembly. -. -i The manual winch system is operated from ground level and elevates the platform to the desired working height. With the outriggers set, the operator climbs the access ladders to the platform. The cable lift system includes an emergency stop fall arrest device. Strong and stable, it is designed to meet the strength and dimensional requirements of ANSI A92.3-1990 safety standards. PLATFORM EXTENSION: The rigid 4 ft. extender bolts to a standard Maxi-Lift to permit a 19 ft. maximum platform height. The guardrails reattach to top of extender. ,-_~ .... ~':";~'FLUORESCENT -~~~--'-~ r~':'"- TUBE CADDY: .. ' .'~~~,_ .. The caddy attaches '--~ easily to the side of the · platform and holds a '.. box of 4 ft. or 8 ft. tubes.. HINGED TOOL TRAY: A handy 10" workshelf that secures to the front or sides of platform rails. Keeps tools within easy reach without restricting platform space. ELECTRO/ HYDRAULIC GROUND ENTRY ELEVATING WORK PLATFORMS OPTIONS' Fluorescent tube caddy ML-2 ............. $72.00 Hinged tool tray ML-3 ............. $43.00 50' power cord/AC units ML-6 ............. $37.00 PRICING AND SPECIFICATIONS LIFT CAPACITY OUTRIGGER BASE SIZE i'-!:;:7~: 54-".-x58~?~ LOWERED HEIGHT f ..~ .. SHIPPING WEIGHT .. 1100 LBS. DC MODEL ML136BH PRICE $3749.00 ..... ...1250~-:'!i-~ -1325'LBS.- ._. ML216BH'.:,,~ML256BH $4480;00:' $4849,00 ACMODEL* PRICE ML136AH $3913.00, ""~'- ' '.$4. 209.00' i" Ml.216AH ML256AH $4644.00 . $5006.00 · 30 amp circuit required to use MANUAL ELEVATING WORK PLATFORM SPECIFICATIONS' Platform Height (max.): 15' Retracted Height: 6'7" Lifting Capacity: 300 lbs. Platform Size: 251/2"x29'' Base dim.: 29"x59" Safety Railing Height: 42" =RICING: ML-15W Winch operated platform ............. $2302.00 ML-2 Fluorescent tube caddy ................... $72.00 ML-3 Hinged tool tray ......................... $43.00 ML-5 Platform extender (4 ft.) .................. $232.00 Base Area with Outriggers Extended' 90° = 63"x57' and 45c = 66"x72" Wheels: 8"x2" Phenolic casters: two fixed and two swivel casters Shipping Weight*- 960 lbs. *Includes protective crating MEMBER cotterman co. .. Div, of Material Control. Inc. ~' ..... ,, ,, ~. ? WARRANTY: . ~ )11.~, 1,-,, THREE MANUFACTURING LOCATIONS TO SERVE YO ~ ~~ All Cotterman products are guaranteed against defects ,~ ~ ~ ~ in workmanship and materials for a period of one (1) year CALIFORNIA, MICHIGAN AND GEORGIA after shipment. P.O. BOX 168 1-810-679-4400 F.O.B. FACTORY. TERMS: NET 30 DAYS 130 SELTZER RD. FAX 810-679-4510 TAX NOT INCLUDED- PRICES SUBJECTTO CHANGE WITHOUT NOTICE CROSwELL, MI 48422 TOLL FREE 800-5 LADDER PRICES EFFECTIVE JAN. 1, 1995 Poet-It TM f~rand fax transmittal memo 7671 # ~a~ ~ ' P.1 9-0H0053\C CS FOR HOUSE BILL NO. 315(FIN) IN THE LEOISLA~RE OF THE STATE OF ALASKA NINETEENTH LEGISLATURE - FIRST SESSION BY THE HOUSE FINANCE COMMITI~E Offered: 4/2?/95 Referred: Rules Sponsor(s): HOUSE RULES COMMITI~E BY REQUEST OF THE GOVERNOR A BILL FOR AN ACT ENTITLED 1 "An .Act relating to the Alaska Science and Technology Foundation and to the 2 financing of technological developments by public corporations of the state; t-elating 3 to the financing of the Kodiak launch complex, the Fairbanks satellite ground 4 station space park, and a Iow-rank coal water fuel technology project; and 5 relating to a feasibility study to be conducted concerning the establishment of a Challenger Learning Center for the study of science and technology," 7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 8 * Section 1. AS 37.17.010(b) is amended to read: 9 (b) The purposes of the foundation are to (1) promote and enhance, through basic and applied research ond the 11 .cle~elopment and commercialization_of techno!og_v_. 12 ~ [:] economic development and technological innovation in 13 Alaska; HBO3tSb -l- New Text ~nderlin_ed [DBLETED TEXT BBACKETED] CSHR 3IS(FIN) 10 12 ~3 15 17 2O 21 23 24 26 2? 31 MRY 09 '~5 07:2~RM lB) public health; CLC. I telecommunications; and ~ sustained growth and development of Alaskan scientiiic and engineering capabilities; (2) implement the BIDCO assistance program under AS 3"/.17,200. 37.17.390. * Sec. 2.. AS 37.17.090(a) i~ amended to read: (a) The board of directors shall provide adequate and appropriate notice of all sol~.citations for grant proposals at least once a year. Except for _~ro_jects liste~kin_8..~ of this section._ the [THE] board shall give preference, consistent with the purposes cf AS 37.17.010 - 37.17.110, to soliciting proposals for research projects ~at are reasonably expected to use or enhance research capabilities for basic and al.~plied research in the state. The board may actively solicit persons, organizations, or in$'citutions to apply for general or specific grants. * Sec, 3. AS 37,17,090(d) is amended to read: (d) Exc_ep_t_fo_r ~yants awarded un.der (k) of this section, not [NOT] lc, ss than 50 percent of the endowment income that is distr/buted t_o. ~,rantee,~ [AS GRANTS] by the foundation in a fiscal year must be for ~ra_nt_payments in t_!h~ fiscal year [GRANTS] of $100,000 or less, exclusive of other funding. * Sec. 4. AS 37.17.090(f) is amended to read: (f) The board shall require from each grant recipient periodic reports and a final report. The board shall disseminate to the scientific community and to the l:.ublic, on a regular basis, the results of research sponsored by the foundation. Thee ] oa~.~~d may adopt regulations to protect _tra~ie secrets and other ~r0prie_tary_ information ' submitted_ tO the_ foundation_ fr_om_disclosu, re un_d_er _AS 09_,25.110~.09.: 25._._!20. Upon w.rlllten request under regulatio,~ adopted .by the bpard to _nl'otecX_kh_e in__tere_sts _of_the s_m_te and .the n__ra.$1tee, l:l~e_ board may a!!o_w-_ information_ de__veloped or to be.developed_ und_er_ a [PROPRIETARY REPORTS AND OTHER INFORMATION VOLUNTARILY FILED WITH THE BOARD OR CRITICAL TO .... ,p.ATE~ APPLICATIONS MAY BE KEPT CONFIDENTIAL IF THE PERSON ~ .. PROVIDING THE INFORMATION SO REQUF~TS AND TI-IE BOARD FINDS ~ew Tex~ Underlined [DELETED TEXT FIHT k::l'~ "~:::::> Id'T: ~4FIFi ,o 22 2~ 2~ 27' 2~ 3D ~ THAT IT IS IN THE BEST INTEREST OF THE STATE. INFORMATION .,q DEVELOPED UNDER A GRANT AWARDED BY THE BOARD 1~,$ PUBLIC :~ INFORMATION UNLESS TIlE APPLICANT REOUESTS AND THE BOARD ~ GRANTS CONFIDENTIALITY PRIOR TO TIlE AWARD OF THE] grant 5 __treated confidentially under AS 09.25_._..1_1.0..~_09__.25_.!20. Dissemination of sponsored I~ research must be in a form of greatest, utility to the scientific community and the 7 general public and may include technological transfer or applications information, for g promising results, ~ * Sec. S. AS 37.17.09()(g) is amended to read: 1t3. (g) As a condition of all grants awarded under AS 37.1'/.()10 - 37.'t7.110, the 15 board of directors shall require that a fair and reasonabte retur_.n t.._o, hl.~.~_fo__t.~ndatio~ 1'~ a_..~._~[e~ter_m, jn_ed_b¥.the__board,~ from_the r_.eve, nue, economic value, or profits derived,. 1~ by the ~rantee from the ~rant project [PERCENTAGE O.F ALL INCOME, ~F AN'..,;, 'lZ.~ FROM ROYALTIES, LICENSES, AND PATENTS PR¢)DUCED AS A RESULT ()F '15 THE GRANT] be paid into the principal of the endowment, subject to AS :37.07. 16 secure payment of sums owed to the fi~undation unOe_.r.r._a, gr_a~.nt agreement, tl~e 17 ti~undation may take a security interest in and own patents, cop)'ri£ht~:,.a~.....~d_91!!.e_r 1~ ing¢l_lec_tua_l nrooertv. 1,t3., * .~,';:~:c. 6. AS 37.~,7.090 is amended by adding a new subscc~.ion to read: 2¢ (k) .Subject to appropriation, the board may award the following :..;rants: 2'~ ('1) up to $5,000,000 to the Alaska Industrial Devefopmeat and Expo'..'t Authority or thc Alaska Aerospace Development Corporation for fl~e development the K{)diak launch complex and Fairbanks satellite ground stat/on space park' (2) up to $4,000,000 to the Alaska Industrial Development and Export Authority or to another entity satisfying criteria established by tl~¢ board for n.',search, development, and commercialization of Iow-rank coal water fuel technology. · Sec, 7. PROJECT FINANCING; BOND AUTHORIZAT~rON. 'l'he Alaska lndustri~.[ Devek)'pment and Export Authority (AIDEA) may issue bond:~ to finance the acquisitit).r,, design, ;and construction of the .Kodiak rocket launch complex ~-,'.nd ~racking station, :~,nO the Fairbanks satellite ground station space park, or may finance these projects by o'[her means 3'i available to AIDEA. The aggregate principal amount of the bonds for these projects may not . HB031Sb -:3- New 7ext_undor!tne~, [mE~ETED TEXT BRACXETED] CSHB 3IS(FIN,) 11 13 14 16 MAY 09 exceed $20,000,000. Until the board of directors of AIDEA and of the Alaska Aerospace Development Corporation have each made a finding for each project that there is sufficient commercial interest and financial viability to support the debt service and operating co,ts of that £acility, no money for any phase of construction may be expended under this section for that project. This section grants the legislative approval required by AS * Sec,. 8. CHALLENGER LEARNING CENTER FEASIBILITY STUDY. Thc .A~,aska Aerospace Development Corporation shall conduct a feasibility study on thc t~;chnical, financial, and economic feasibility of establishing in the state a Challenger Learning C~,ntcr that is for the study of science and technology and that is modeled after thc tZhallcngcr Learning Center program established by the Challenger Center for Space Science Education.. The feasibility, study shall consider various locations for the center. Thc costs of t.lle study shall be paid as follows: (1) on'-half by the Alaska Aerospace Development Corporat/on and the Alaska Industrial Development and Export Authority; and (2) one-half by the municipalities desir/n~ ¢onsiderat/on as possible locations for the center. -4. ~_ew T~' Undez'ltn~d [DELmTBD T~XT ~RACKETED] PENI NSUL,~ L I 0 F~X NO, 907 262 1881 ~. [lflY-US-Sb 'l'Uk US:~l KI~N~I ?i::NINSUL~ LlO Fh}{ NO, 807 2~2 1881 P, 02 F~FY'-88--&995 lg:.'~ Sa~W~ ~_~. INF0, C~ILE D~7 ~4 ~7 ~.~ 4SS. ~;a7 gSS, 58v 25 oOOO 25,000 28,662 28,662 _, I2,000 12, czoO 22.1,665 326,000 326 . 000 1. 000, OOf:l :L, DOO, DOD 2.'1X0. DO0 2o3XQ.OQO coo/cool~l OIq CI~iL3S L IU bflX NO, BUY 2B2 1881 P, 03 · LEG. ll, lt=O. OI=I=ICE ~ ~.4 $1~? P.I~ 15 3 S 7 3L end e~el~m~ Vork (~ 7) 32 ~oldo~ ~~e~cu sh~p 33 ~eavatieu/~oa~one {SD 81 6s;,o.aoa 2,25o, oao '720,000 $00,000 2.000,000 LOS.GOO 4QO.OO0 8S,OOO las.aaa 1.3"1.000 J.~3.aoo RS.000 See. ~S M~Y-US-Sb 'I'UE 08:22 KENSI ?ENIN~UL~ LIO FSX NO, 007 282 1881 P, 04 , M~Y-08-19~S 15:L~4 SEWARB LE~, IN~. C~IC~ ~ 224 o 3 . 4 3~ a m~i li ~a~ ion/Si ~al i z4 ~ion 18.4-22. ( aena~llt~a~~ C~ 8) street z~~~n~ (KD 9J ~cA~ragm - 5~/~ Avenue: b an~tli~a~lefl (E~ lO-2S) ~~zage · A~~t Ao~: ~ ~~ ~e ~8~ Ave ROCO~O~~CtO~ (~U xG-25) Filiifl~ ~atioal (~ 2BSrO00 200,000 2.,360,000 260.000 l, B20.O00 2.500,000 $70,000 Funds Page, 25 .SCS C.qHB 268[ ). Soc. IS TOTAL P. 03 IIH¥-UO-~O rlUFl 10; 0~ UHH rlHt" 1 ;5 ;SULI)U 1 Nfl ~U-[ 2D2 2812 ..~ P, O1 Memorandum: To: Dr. D. Hammer 'Dr. G. Park Mayor J. Williams Wm. Ulich ,~ From- : D. Steffy /'L?- - Date' 8 May 1995 RE' LSI Burn Building I learned unofficially that our biggest client at the LSI fire training facility has lost patience with our efforts to fund the interior prop and has decided that unless we implement a schedule immediately to complete the facility they will have to construct something in cooperation with Unocal Chemicals in lieu of our efforts. I understand that the Unviersity once again did not actively support the capital issue in the 95 legislature. This is critical. Without UNOCAL's approximately ~00 employees, the LSI is probably dead. It would mean the waste of the ~ajority of the investment in the LSI so far. I request an opportunity to meet with the city of Kenai and the University to investigate alternative means of funding the $500,000 necessary to get the building usable. MEMORANDUM TO: FROM: DATE: SUBJECT: FOR: Keith Kornelis, Public Works Director Kayo McGillivray, Parks & Rec. Director Robert C. Springer, Building Official ~ May 10, 1995 portable Aerial Platform Budget Work Session - May 10, 1995 Currently the city has a telescoping ladder with a platform on top to reach ceilings in the Rec. Center and Visitors Center; the Rec. Center is 24' off the floor and the Visitors Center is 27' off the floor. This unit is very unsafe. Anybody who has to climb 24' vertically up a ladder, while carrying an 8' fluorescent bulb, would agree this is a hazard. It is a miracle no one has gotten hurt working off this unit. This morning we had a demonstration of the Genie Portable Aerial Work Platform. The demonstration and literature provided clearly showed us that this piece of equipment is badly needed for our maintenance personnel to safely and offectively do their job while working in high locations. This lift could also be used in our Warm Storage, Shop and Fire Department Apparatus room. Currently we use the bucket truck which requires the engine to be running while in operation. This is hazardous in the winter when the doors are down and Carbon Monoxide builds up in the closed area. Th Genie Portable is sold through a company in Anchorage. They can provide service and safety instruction to our personnel easily. The delivered price is $6,300.00, which is a pittance compared to the liability costs involved if a worker were to get injured or killed using the old piece of equipment. Additionally, Rachel Clark has researched the OSHA requirements and while our old unit does not come under any spo¢ifi¢ guidelines, it does come under some broader guidelines. This means it may not comply with OSHA regulations. Rachel has provided a memo (attached) regarding these regulations which will take effect August 6, 1995. RS/kw MEMORANDUM Date: May 10, 1995 To.' From: Subject: Robert Springer, Building Official Rachel Clark, Engineering Technician Fall protection devices for ladders As you requested, I have researched the OSHA requirements for fall protection devices for ladders. 29 CFR 1926.501 (b)(1) "... Each employee on a walking/working surface (horizontal or vertical surface) with an unprotected side or edge which is 6 feet or more above a lower level shall be protected from falling by the use of a guardrail system, safety net system, or personal fall arrest system." 29 CFR 1926.1053 (a)(18 and 19) "Fixed ladders shah be provided with cages, wells, ladder safety devices, or self-retracting lifelines where the length of the climb is less than 24 feet but the top of the ladder is at a distance greater than 24 feet above the lower levels. 8 AAC 61.010.01.1107 (d)(7) "Cages or wells ...... shah be provided on ladders of more than 20 feet to a maximum unbroken length of 30 feet." (see attached drawing) These requirements are part of the new Fall Protection Regulations that have formally adopted by Fed-OSHA, and will begin application August 6, 1995. been 01.1107 - Figure 11-7 FIGURE 11-7 Clearance Diagram for Fixed Ladder in Well WALL, :R OISTIKJCTI~S FIGURE 11-8 Cages for Ladders More Than 20 Feet High ACCESS TO LANOING PLATFORM THROUG~ LADOEII AGO[II LATERALLY FROM LADDER 8 AAC 61.010 01.11-38 Revised 2118/94 · o 130 SELTZER ROAD P.O. BOX 168 - CROSWELL, MICHIGAN 48~22;0~1.68' ., 81-0/879-4400 - FAX 810/679-4510 .;,. · :~.. ',,;~ FAX PROPOSAL TO: City of Kenai, AK DATE' 4/1911995 ATTN: Steve Ramberg, Building Maint. FAX #: 907-283-7568 # OF PAGES INCLUDING THIS PAGE: UNIT ;:IUANTITY DESCRIPTION PRICE TOTAL ~.'.- 1 ML256BH 1 Lot Interbranch Charge Estimated freight to Kenai, AK 99611 via Yellow Freight To Seattle = $518.10 Seattle to Kenai = $1209.59 $4,849.00 $ 4,849.00' $150.00 $ 150.00 $1,727.69 $ 1,727.69 TOTAL:I-$ [FLANK YOU FOR THE OPPORTUNITY' TO QUOTE ON YOUR ~01REMENTS. PLEASE CONTACT US WITH ANY QUESTIONS. ,;.. ~., .."#: 810-6794510 800-,552-3337 .0..'.:;-~.. ~," · :.:~::.'..,::.' .. t.~.~.t;i.'.d £'l;&~ Wd~'l; '1;" ~66~ '61~ ~dt~ 89£££8~ £06 :.. ~, :...' ,,._;, .... NWW~q±±OD dWOD ANOD'WO~ .Ol COTTERMA~I C~DMP~ANY Marc ID. $¢ho~p Assistant Sales Manager ~::i...:.ii-.!:-~ TERMS' NET 30 DAYS (Subject to Approval) FOB: Bakersfield, CA · . !?.:(..2,_....~. PRICING: FIRM FOR 30 DAYS SHIPMENT: 3 Days ARQ (When in Stock) GROUND ENTRY -_.. .. 25FT. PLATFOB/B HEIGHT Cotterman Co. Division of Material Control. Inc. P.O. BOX 168 130 SELTZER RD. CROSwELL, MI 48422 810-679-4400 FAX 810-679-4510 TOLL FREE 800-552-3337 . REACH THESE HEIGHTS Platform heights of 13 ft., 17 ft., 21 ft., and 25 ft. permit working heights of up to 31 ft. SHIPPING WEIGHT tterm, an DC MODEL ML136BH ML176BH ML216BH ML256BH AC MODEL ML136AH ML176AH ML216AH ML256AH LIFT CAPACITY 400 LBS. 400 LBS. 300 LBS. 300 LBS. OUTRIGGER BASE SIZE 54" x 58" 54" x 58" 54" x 63" 54" x 63" LOWERED HEIGHT 771/2'' 771/2- 771/2' 771/2" 1100 LBS. 1165 LBS. 1250 LBS. 1325 LBS. 13' 17' 21' 25' atform 'accessfrom M'or~left. si IN OR PULL OUI' LIOH! ONLY The Maxi-Lift~ with electrically inter- locked outriggers extended and prop- erly positioned. [ ; , inCl~eS the Easy access to the 24"x 30" platform at ground level from left or right side. :: '-.The comPact design allows easy movement .... through standard doorways on smooth rolling 8" phenolic casters. . ;;.,~;:'-::: ..~,: -:..., - . .' Operator in position ready to use the dual operating buttons. Control center in base includes a master key lock. an emergency stop button, platform motion controls, and 110V input for platform outlet power and for operation of AC models. Platform operator controls include dual up and down operation buttons, an emergency stop button. A 110V outlet is provided for powered accessories. The large 25" "~ work .,¢rm has surety guard- rails and a midrail slide open gate. Cable lift system incorporates an emergency fall arrest mechanism. Dual ladders provide operator access to platform when extended to desired work height. Extra wide lift columns are nested for smooth operation and stability while in use. MANUAL WINC ELEVATING Standard 15 ft. platform height permits 21 ft. working height. Optional platform extender adds 4 ft. to give a platform height of 19 ft. and a working height of 25 ft. A single operator can easily move The Maxi-Lift": from job to job on smooth rolling 8" phenolic casters. The compact design allows easy move- ment of the unit through standard door- ways. , inCOrporates an, Casters ,~:" ";ment of The Maxi- ~ · ,.::.: .... ... ~:~.~'.',.~. 1'he l axi -Lift puts you where the work is The manual winch Maxi-Lift is built tough to handle the day-to-day demands of industrial and commercial use. Getting those overhead jobs done requires a lift that is dependable - one that won't let you down. Desig. ned to be handled and operated by one worker, it rolls easily from job to job and fits through a standard doorway without alteration or disassembly. The manual winch system is operated from ground level and elevates the platform to the desired working height. With the outriggers set. the operator climbs the access ladders to the platform. The cable lift system includes an emergency stop fall arrest device. Strong and stable, it is designed to meet the strength and dimensional requirements of ANSI A92.3-1990 safety standards. PLATFORM EXTENSION: The rigid 4 ft. extender bolts to a standard Maxi-Lift to permit a 19 ft. maximum platform height. The guardrails reattach to top of extender. FLUORESCENT TUBE CADDY: The caddy attaches easily to the side of the platform and holds a box of 4 ft. or 8 ft. tubes.. HINGED TOOL TRAY: A handy 10" workshelf that secures to the front or sides of platform rails. Keeps tools within easy reach without restricting platform space. ELECTRO/ HYDRAULIC GROUND ENTRY ELEVATING WORK PLATFORMS OPTIONS' Fluorescent tube caddy ~-- ML-2 ............. $72,00 ~ Hinged tool tray c~. ML-3 ............. $43,00 50' power cord/AC units ML-6 ............. $37,00 PRICING AND SPECIFICATIONS LIFT CAPACITY OUTRIGGER BASE SiZE LOWERED HEIGHT SHIPPING WEIGHT DC MODEL PRICE .. 1 IOOLBS. ML136BH $3749.00 AC MODEL PRICE .. MI.2168H.~:. ML256BH $4480:00.;" $4849,00 ML136AH ; "' ' ML176AH.-:_.. ML216AH $3913.00 . "'~:." '.$4. 209~00. ' $4644,00 MI.256AH $5006.00 ' 30 amp circuit required to use MANUAL SPECIFICATIONS: Platform Height (max,): 15' Retracted Height: 6'7" Lifting Capacity: 300 lbs. Platform Size: 251/2'x29'' Base dim,: 29'x59'' Safety Railing Height: 42' PRICING: ML-15W Winch operated platform ............. $2302,00 ML-2 Fluorescent tube caddy ................... $72,00 ['/'-I '"~ /~f~'~ ~ ELEVATING WORK PLATFORM Base Area with Outriggers Extended- 90° = 63"x57" and 45-~ = 66"x72" Wheels' 8'x2' Phenolic casters: two fixed and two swivel casters Shipping Weight*: 960 lbs. 'Includes protective crating ML-3 Hinged tool tray ......................... $43,00 ML-5 Platform extender (4 ft.) .................. $232,00 MEMBER P.O. BOX 168 130 SELTZER RD. CROSwELL, MI 48422 1-810-679-4400 FAX 810-679-4510 TOLL FREE 800-5 LADDER F.O.B. FACTORY, TERMS' NET 30 DAYS TAX NOT INCLUDED · PRICES SUBJECT TO CHANGE WITHOUT NOTICE PRICES EFFECTIVE JAN. 1, 1995 cotterman co. 9iv. of Material Control. inc. WARRANTY: All Cotterman products are guaranteed against defects THREE MANUFACTURING LOCATIONS TO SERVE YO ~, workmanship and materials for a period of one (1) year CALIFORNIA, MICHIGAN AND GEORGIA after shipment. 1791 o 1991 CITY OF KENAI. FAX 210 Fidalgo, Suite 200 -Kenai,.Alaska 99611-7794 · ~ Phone 907-283-7~3~ . "_. Fax 907-283-3014 Date Number of Pagm ,,, 1791- 1991 CITY OF KENAI. FAX 210 Fidalgo, Suite 200 K~nai+.Alaska 99611-7794 ~- ~ Phone 907-283-753~ ·" Fnx 907-283-3014 TO FROM Date Number of Pages MEMORANDUM TO: FROM: ALL CONCERNED Carol L. Freas, City Clerk DATE: April 7, 1995 RE: BUDGET WORK SESSION WEDNESDAY, APRIL 12, 1995 At their April 5, 1995 meeting, the Kenai City Council scheduled their first budget work session for Wednesday, April 12, 1995. The work session will be held at the Kenai Senior Center and will begin at 7:00 p.m. If you have any information, other than the budget and budget memorandum which has already been distributed to Council, please forward it to me by 2:00 p.m. on Monday, April 10, 1995. Copies of that information will then be made for Council and distributed to them prior to the work session in order that they have time to review it. Your cooperation is appreciated. elf WORK SESSION NOTICE The Kenai City Council will meet in a WORK SESSION on WEDNESDAY, APRIL 12, 1995. The work session will be held at the KENAI SENIOR CENTER and will begin at 7:00 P.M. The topic to be discussed is' FY 95/96 CITY OF KENM BUDGET The public is invited to attend and participate. Carol L. Freas City Clerk ........................................................................................ Kenai City of historical Russian Orthodox Church salrnon fishing ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :.:.:.:.:.:.:.:.:.:.:.:.;.:.:.:.;.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.;.;.:.:.:.:.:.:.: Kenai Arts and Humanities Council Box 822 Kenai, Alaska 99611 (907) 283-7040 April 24, 1995 Organized in 1972. Comprises of non-profit cultural organizations. KENAI CITY COUNCIL 210 Fildalgo, Suite 200 Kenai, AK 99611-7794 KENAI FINE ART CENTER ROOF Ref: Kenai City Council Meeting, April 19 As per your request, the Kenai Arts and Humanities Council has sought bid/proposal data on installing a new roof on the Kenai Fine Arts Center. Attached is a copy of Hanson's Roofing bid. Chumley of the Raven Company has promised a proposal which can be presented at the city budget work session, April 26, by Pottery Studio Coordinator John Rovin. Tom Wagoner, KAHC Member at Large, suggests installing trusses then a metal pitched roof. Mr. Wagoner will be available at the city budget work session to further explain his thoughts about constructing a durable roof onto the Center. Attached is the KAHC's 3-Year Plan which includes a major project of remodeling the gallery, so as to display artwork in a professional mode. PEGGY GILL THOMPSON - PRESIDENT, KAHC Attachments Hanson's Roofing bid Kenai Arts and Humanities Council's 3-Year Plan Kenai Arts and Humanities Council 3-Yea r Plan Maintenance of Kenai Fine Arts Center April 26, 1995 Responsibility to City Maintain the Kenai Fine Arts Center. Perennial Arts Objectives Encourage organizations under Arts and Humanities Council umbrella to have exhibitions, workshops, classes, and demonstrations of various media and/or lectures at the Kenai Fine Arts Center for all ages. Conjunct performing arts with art productions. Maintenance Plans for Kenai Fine Arts Center 1995 1. Roof. Install trusses; add pitched metal roof. 2. Have front display signs repainted. 3. Purchase large ceiling tiles to replace water-destroyed tiles. . Heating system. Secure pipe connections so as to avoid leaks. (done) 5. Install light fixtures with luminous bulbs above front doors. (done) Produce two brochures. (done) a. to advertise Kenai Fine Arts Center--especially for tourists. b. to supplement visual and performing art grant applications-- give purposes of Kenai Arts and Humanities Council. 1996 1. Upgrade main gallery a. Display walls. Install plywood then wall carpet over. b. Paint wall areas not carpeted. c. Purchase more standards for sectioning off sales and the variety of media in an art show. d. Install more track lights. 2. Landscape east side of Pottery Studio. 1997 1. Install carpet in main gallery. 2. Install permanent shelves in storage room. 3. Seek monetary means to finance a Kenai Fine Arts Center director. HANSON'~S ROOFING 309 Birch'-'.~:St. KENAI, ALASKA 99611 (907) 283-34;19 Uc. No. #AA4897 al .._ )RDER' NO. ' ._ ...e..., .............. _. ........... :_..,~._.=.:~ QTY. DESCRIPTION PRICE AMOUNT . -r,..~o - ~ ............ ~ U ', 1 ........ -=~ ' :':'"I- ':: .............. ~_.;~...,..._..~__~~~:,~~.~~._~;__~__~~_ ~~ ...... ' -' ~ ................. ........................... ............................................ --. .............................................. 2 ............................................................................... ~ ....................... · : ' TAX I RECEIVED BY TOTAL I 141'7 All claims and returned goods MUST be accompanied by this bill. RAVEN April 24, 1995 Kenai Fine Arts Center BID Included in the bid price is the following- Removin~ and replacin~ current, water damaged urethane, addin~ a bg_ndin~ agent t.o ex/_stin~ roof and resealin~ the e_ntire roof. Installation of approxzmately 60 linear ~eet of new flashing. Removal of all debris and clean up. TOTAL LIIMP SlIM BID ...................... $13,885.00 Steve Cropsey Accepted by Kenai Fine Arts Rep~' RAVEN CONTRACTORS, INC. P.O. BOX 490 KENAI, ALASKA 9961 907-283-2052 FAX 907-283-5081 Applaud printed in the PENINSULA CLARION Tuesday, April 18, 1995. Tha ks t Art n o the Kenai...~ ............ ui A gi~t ~k you g~s m Guild in apprecia~on:~of its suppo~of,:&e Ke~i Peninsula .Borough. SchoolDi~~f S~nt ~ ~d Phom~hy ~bi~c~ ~ ~1 d~ng ApdI,~; ~e '~su~ Celebm~0h" w~ ~ on &~ayat ~e Ken~'~.G~&~'~e ~d hos~ ~s s~nt show.-~~ly:~~~." vol~~ ~d pro~es a musem q~~-..~'~ 'play ~ea for our. asp~ng ..... ~so'd~cam J~:~ ~~ C~~~'~ -~m ~hol~~p money for~ ~~g:m ~Tden~Ii iS wonde~l to have ~s n~ng~ Kenai Arts and Humanities Council Box 822 Organized in 1972. Kenai, Alaska 99611 Comprises of non-profit (907) 283-7040 cultural organizations. April 11, 1995 Kenai City of historical Russian Orthodox Church salmon fishing KENAI CITY COUNCIL 210 Fildalgo, Suite 200 Kenai, AK 99611-7794 KENAI FINE ART CENTER ROOF What was expected to be a somewhat simple matter of sealing the Kenai Fine Arts Center's roof has turned into a capital improvement project which calls for the attention of the City Council. Kenai's building inspectors have investigated and/or assessed the Center's roof damage. In vain the KAHC spent $975 on the roof with thoughts that it would be durable for many years to come. According to the lease between the City of Kenai and the Kenai Arts and Humanities Council, the KAHC has maintained the Center. Attached are (1) spreadsheets documenting maintenance expense 1991 - 1994 (2) expenses on roof, furnace system, and electrical lighting for 1995. In addition to maintenance, the KAHC pays all utilities for the Center. The Kenai Fine Arts Center is a special facility; it is the envy of Alaskan and Lower 48 visitors as it houses art activities (see Kenai Fine Arts Center brochure) not normally available in most towns--not even Anchorage. Art shows are displayed throughout the year. Children's classes are especially popular during the summer. The Pottery Studio is open year around. Requested is that the City Council fund and oversee that a substantial roof be installed. Such will be greatly appreciated by the KAHC as well as parents, children, tourists, ... who benefit from the variety of activities at the Center. PEGGY GILL THOMPSON - PRESIDENT, KAHC M~inten~nce · Ken~i Fine A~t~ Cente~ 1 991 thru 1 994 K enai Arts and Humanities Council Income :::::::::::::::::::::::::~:::::::::::::::::::::::::::::.~:~`.::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~:~:::::;::::..~::::::::::::::::: Art Guild Potters Guild Redoubt Quilters Jail House Rock Donors Total Income 869.05 983.85 656.65~i~i 3,299.98I 659.40 792.00 804.01 iii~i~! 3,397.511 380.00 260.00 ..................................... i.i:.:.:i ..................... I 640.001 5,000.00 4,620.78 5,900.63 ~ii ~ i~ 22,653.39I ~75.00 ~95.00 ~75 0011 ..... !...! ........... i ......... ~.i.i~ ~95.00 7,083.45 6,851.63 7,536.29 ................................ ~..i..~.....~...~..i..~..~ .... 30,585.88 phone HEA, electricity Enstar, gas water, city Total Utilities 669.59 609.29 545.57 i ~i~! 2,35~.o~ 1,23o.42 1,498.75 1,521.o5 i i!i~i~! 5,813.17 1,493.86 1,145.50 1,453.38 ~ii~i~! 5,220.93 273.00 295.75 300.00 ...................... ii..~.~.i.~.! 1,168.50 3,666.07 3,540.29 0,820.00 ~i~i~! 11,036.16 Special Expenses :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: insurance furnace system clean wkshop floor paint KFAC exterior display sign installed roof- 3 places patched Totals 252.00 250.00 119.68 101.37 371.68 3,889.13 ..... ~....~..~.~.~..~..~."..! 852.00 1,422.18 119.68 2,38O.OO 1,261.82 100.00 6,135.68 Helen Wynkoop, Treasurer prepared by Peggy Gill Thompson Maintenance Expenses · Kenai Fine A~ts Cente~ roof, furnace, and lighting January - April, 1995 Kenai Arts and Humanities Council 9/5/9 4 Hansen patched 3 places 100.00 1/2 6/95 Hansen checked leak between gallery & studi 75.00 4/6/9 5 Hansen tarring-sealing 800.00 did not complete' due to moisture Total $975.00 3/8/95 Labor and parts furnace and lights 855.76 Furnace pipe system resealed light fixtures installed, other 3/8/95 2 outside light fixtures with 264.64 high pressure sodium lamp 3/9/95 florescent light ballasts parts, Kenai Supply 62.48 Labor repairing florescent light unit, 150.00 change sealing tiles, other technical chores Total 1,332.88 Total spent on roof, furnance system, and lighting includes September 5, 1994-$100 $2,307.88 Helen Wynkoop, Treasurer prepared by Peggy Gill Thompson of the Kenai Arts and Humanities Council as printed Kenai Arts and Humanities Council Newsletter, Council Focus: Volume I, No. 1. Spring, 1990 By having its federal non- profit tax and borough sales tax exempt numbers, the Kenai Arts and Humanities Council acts as an agent for organizations under its umbrella. Active members of the Kenai Arts and Humanities Council are Central Peninsula Counseling Services, Central Hospital Auxiliary, Kenai Art Guild, Kenai Community Library, Kenai Historical Society, Kenai Potters Guild, and Peninsula Dancers. Council Purpose · Provide for instruction and training of individuals to improve or develop their capabilities in artistic endeavors. · Provide for instruction of the public in art and cultural heritage subjects through public discussion groups, forums, panels, and lectures. · Encourage interest in and appreciation of drama, dance, and musical arts, by sponsoring public performances. Provide for displays of art works by sponsoring free-of- charge public exhibitions. History Fern Hayward, new Kenai resident and member of the Alaska State Council on the Arts, fostered the formation of a local arts council. On October 5, 1972, artists, performers, musicians, and humanists, who gathered in Fern's home, organized suCh a council and elected temporary officers: Marion Kempf (now Nelson), president; Clarice Kipp, vice-president; Pat Morris, secretary; Alice Graves, treasurer; and Peggy Arness, publicity chairman. When the Kenai Police and Fire Departments moved into a new facility on Willow Street, the City's 816 Cook Avenue building, which housed these departments during the 1950's, 1960's, until 1972, became vacant. On appeal from the newly formed Kenai Arts Council (later renamed Kenai Arts and Humanities Council), the Kenai City Council voted March 21, 1973 to lease the complex, for one dollar per year, to the Arts Council. The building, renamed Kenai Fine Arts Center, became the KAH Council's seat and a place to conduct meetings, produce art shows, and sponsor workshops. One of the two old fire truck garages became a gallery and the other a pottery lab. For nine years artists dealt with the fire hall environment: Cold air blew in from around the huge fire truck-size entrances; heating pipes were visible in an open ceiling; the floor was uncovered unpainted con- crete; small office rooms were between the west fire-truck garage and former jail area. Pursuing a more aesthetic arts center, dedicated members lobbied the City Council to budget for renovating the old fire hall. Money finally allotted, during the 1980-81 winter, contractor Leonard Efta converted the small office rooms into a one-room workshop area and fire truck garage room into a delightful gallery. Also, sheet rock was installed on the Pottery Studio walls. Finance The City requests that the Kenai Arts and Humanities Council maintain the KFA Center: pay utilities, do minor repairs, pay for door locks and keys, and painting. To finance this expense, the Council receives 10% of Old Town Gallery art sales; rent of workshop space at $10 per day, $5 electric kiln firing fees, and 50% of Pottery Studio rent. As this income does not meet present utility expense, means are sought for replenishing the KAH Council's treasury. Past years' supple- mental income were: · Alaska State Council on the Arts block grant, 1980-1985. · rent from IRS representatives using desks in a back room ending 1986. · renting space to Peninsula Learning Resources 1986-1988. New renters of the KFA Center's back area were sought to no avail. Last summer when the treasury was virtually empty, President Francis Meeks and Treasurer Mae Hughes made a plea to the City Council for financial aid. Their efforts were rewarded with a $4500 one-time only donation assigned to future utility bills. Up-date (May. ~992) The Council has produced three Jail House Rock fund-raisers totalling $14,077.22. KENAI CITY COUNCIL BUDGET WORK SESSION MAY 10· 1995 KENAI SENIOR CENTER 7:00 P.M. ITEM CALL TO ORDER The work session began at approximately 7-10 p.m. ITEM PERSONS PRESENT Councilmembers present were- Williams, Bookey, Smalley, Measles, and Bannock. Staff present were- Freas, Graves, Brown, DeForest, Ernst, Kornelis, McGillivray, Morris, Porter, J. Elson, S. Walden, B. Springer, Burnett, S. Binkley, Manninen. Others present: E. Clausen. ITEM 3: REVIEW OF EVENTS: State Legislature - Williams reviewed handout information in regard to the proposed capital budget, noting that the information was forwarded on May 8. At that time, the funding was included in the capital budget for two Cit projects: Mission Street improvements and water development. Williams added the session should end in the near future. Burn Building/Fire Training Facility - Williams reviewed a memorandum received from Dennis Steffy regarding funding for the interior prop for the burn building. Williams reported he spoke with the Board of Regents and told them the City of Kenai was extremely embarrassed by the University's handling of the funding for the fire training facility. He reminded them the City prepared two pieces of legislation to make funding available and the University failed to go forward with them. Williams suggested the City needs to send a delegation to Fairbanks and discuss the matter with the University President and the Board of Regents. Hall Appeal - Clerk Freas reported she received a letter of withdrawal of the appeal from Hall's attorney, Dale Dolifka. Letters reporting this information and canceling the Board of Adjustment Hearing scheduled for May 13, 1995 at 9:00 a.m. were mailed to the property owners within 300 feet affected by the matter. ITEM 4: BUDGET DISCUSSIONS Parks & Recreation/Public Works Department Request: KENAI CITY COUNCIL BUDGET WORK SESSION MAY 10, 1995 PAGE 2 a. H¥4raulic Platform - McGillivray referred to information handed out describing a portable elevating work platform which he and Kornelis feel would be very useful and advantageous to the City. Memorandums from Bob Springer and Rachel Clark were also distributed to Council which discussed the areas where the equipment could be used and the safety of this piece of equipment. McGillivray added they had the opportunity to have a demonstration of the Genie Unit. He believes the equipment can be utilized all over the city. This unit weighs 600 lbs. and can be maneuvered by one person. Cost of this unit was quoted as $6,300. McGillivray stated the quote would be good for 120 days, which would carry into the new fiscal year. Bannock stated he would support the purchase of the equipment if the information included in Springer and Clark's memorandums was accurate (regarding safety and use). McGillivray stated the platform would be housed at the Rec Center. Measles asked if the platform would be used in only City buildings. Kornelis answered yes, and also would be used at the Kenai Visitors Center. COUNCIL DIRECTED TO PLACE $6,300 IN THE BUILDINGS BUDGET FOR THE PURCHASE OF A 110 ELECTRIC MODEL HYDRAULIC PLATFORM. Visitors Center: a. Janitorial Expenses - Williams referred to the memorandum included in the packet requesting an additional $1,500 be added to the Visitors Center budget for janitorial costs. There were no objections to the request. COUNCIL DIRECTED $1,500 BE ADDED TO THE VISITOR CENTER BUDGET FOR ADDITIONAL JANITORIAL COSTS. Public Works Heavy Equipmen_t Requests: a. Replacement of AD-4, 1981 Ford Pick-Up (City Engineer's pick-up). Council questioned whether there was a need for purchase of a four-wheel drive vehicle. Kornelis answered there are times need has arisen for pulling equipment, getting in and out of areas where inspections have to be made, etc. Williams noted this would be a pool vehicle for Administration and felt consideration of the overall cost of the equipment should be made. Bookey agreed and added, the major projects are KENAI CITY COUNCIL BUDGET WORK SESSION MAY 10, 1995 PAGE 3 completed and no new ones are on the horizon. There are enough vehicles available that if needed, another fleet vehicle could be used. COUNCIL A(~REED TO REPLACE THE AD-4 VEHICLE WITH i% TWO-WHEEL DRIVE PICK-UP (PLAIN-JANE) AT AN APPROXIMATE COST OF $20,000. b. Shop Truck Replacement - Council reviewed the justification for replacement of the truck which was included in the packet. It was noted the truck was in fairly good shape, however the equipment was worn out. Kornelis stated they would like to replace this vehicle with a 4x4 for pulling equipment, getting in and out of soft ground, etc. The present shop truck could be transferred to Parks & Rec for use by their crews. Williams suggested the truck be given to the Water/Sewer Department. Kornelis stated it is not the type of vehicle water/sewer needs. They had discussed the purchase of a new truck for water/sewer use (replacing the 1992 truck they now have) and transfer the 1992 truck to Parks & Rec as well. Parks & Rec did not ask for two vehicles because McGillivray and Kornelis discussed the possibility of transferring of these trucks to them. Williams asked if the STP truck (Page 7 of Attachment 5) be replaced by the shop truck (page 2 of Attachment 5)? Kornelis stated no, the shop truck is used for towing and plowing out intersections and driveways. Kornelis clarified, he was proposing the transfer of the shop truck (page 2) and the water/sewer truck (page 10) to Parks & Recreation. McGillivray added, because he lost two trucks to the auction last year, he was hoping to have two transferred. The two trucks Kornelis referred to would be adequate for their needs. Williams asked if Kornelis wanted a new truck for the shop with the extras. Kornelis answered yes, however the extras are included in the budgeted price. Williams asked if this shop truck would then be transferred to Parks & Rec. Kornelis answered yes. The budgeted price is $29,000. COUNCIL A~REED TO INCLUDE $29,000 IN THE BUDGET FOR THE PURCHASE OF A NEW SHOP TRUCK. KENAI CITY COUNCIL BUDGET WORK SESSION MAY 10, 1995 PAGE 4 c. Waste Oil Furnace - Council reviewed the justification included in the packet for the purchase of a waste oil furnace to be used at the shop. There were no objections to the purchase. COUNCIL A~REED TO INCLUDE $4,500 IN THE BUDGET FOR THE PURCHASE OF A WASTE OIL FURNACE. d. Unimog Tractor - Council reviewed the justification included in the packet for the purchase of a new snow blower. The Unimog tractor would be kept as back-up equipment. Bookey suggested a new blower be purchased. The Unimog should be kept for one year and see how often it is needed as back-up. Keep track of how often the new blower is needing repair, etc. Decide next year if they should get rid of the Unimog. The Unimog can still be used for sweeping. COUNCIL AGREED TO KEEP THE UNIMO~ AS BACK-UP EQUIPMENT FOR ONE MORE YEAR. e. Emergency Response Trailer - Kornelis stated the budgeted cost is $22,000. Bookey clarified the trailer would only be used for emergency situations. Kornelis stated yes. The trailer would be kept locked. The street foreman, Fire Department, and Police Department would have keys. Anything taken out of the trailer during an emergency would be inventoried and replaced, etc. Kornelis added he believed the trailer would be well worth the cost if there would be an earthquake, oil spill, airplane accident, etc. Burnett stated he would be concerned if they were going to be moving into handling hazardous chemicals, etc. The crews are not trained for that and the City would be taking on a large liability. Bookey agreed and added he wouldn't feel comfortable if the street crews, etc. would respond to that type of emergency. Kornelis stated they would be there to flag areas, help with traffic control and lights, barricading, etc. Bookey stated he would prefer the trailer be used for that type of use. It is the Fire and Police Departments' jobs to keep order on the highway, etc. COUNCIL A~REED TO PLACIN~ $29-,000 IN THE BUDGET FOR THE DEVELOPMENT OF AN EMERGENCY RESPONSE TRAILER. KENAI CITY COUNCIL BUDGET WORK SESSION MAY 10, 1995 PAGE 5 f. Loader-Mounted Snow Blower - Because Council agreed to keep the Unimog as back-up equipment, they, in turn, agreed to the purchase of a loader-mounted snow blower. COUNCIL AGREED TO PLACING $135,000 IN THE BUDGET FOR THE PURCHASE OF A LOADER-MOUNTED SNOW BLOWER. g. 3/4 Ton, Four-Wheel Drive Pick-Up/Replacing STZ - Council reviewed the justification for the replacement of the ST2 truck which was included in the packet. Kornelis reported the present truck would be put up for auction. It is beyond repair. Asked if they could use a two-wheel drive truck instead, Kornelis answered no. They use the truck for pulling, etc. COUNCIL APPROVED THE COST FOR A 3/4 TON, FOUR-WHEEL DRIVE PICK-UP TO REPLACE ST2. h. Forks for 956C - Council reviewed the justification for the purchase of the forks. Kornelis stated the cost budgeted is $13,000. They would used with the new loader. They would be used for loading and unloading equipment on the graders (wings), etc. The shop would be able to use it too. Bookey stated the forks now used have been utilized for some years and added he believed the new forks would be a luxury. Discussion followed. COUNCIL AGREED TO DISCUSS THE BUDGETING FOR THE PURCHASE OF THE FORKS FOR THE 966C DURING THEIR MEETING OF JUNE 7. i. Drott Hoe - Council reviewed the justification for the purchase of the Drott hoe. Council reviewed a video which indicated the problems with the hoe. Kornelis added it will take approximately $28,000 to repair the hoe. Also, the hoe does not have roll-over protection which new ones have, the brakes are shop, it has hydraulic problems, seals need replacing, etc. A new hoe would cost $175,000. Bookey stated he has not comfortable to spend that much for a piece of equipment which is not heavily used. Bookey suggested not buying a new hoe. Use the present one for small jobs around the city. When there is a major job requiring this type of equipment, contract it out. KENAI CITY COUNCIL BUDGET WORK SESSION MAY 10, 1995 PAGE 6 Kornelis stated it would be expensive to rent a hoe and a contractor may not always be available. Bookey stated one could be rented from Craig Taylor. Smalley asked if Kornelis had priced a "new-used" hoe. Kornelis stated no, but guessed one would cost around $100,000. Williams suggested the Drott hoe be used for now for small jobs. If a big problem arises, contract the work out instead of buying a new hoe. Kornelis should price out some used ones to look at in the next budget. Bannock stated he would like to look at a used one if it can be purchased for $100,000. The Drott was a used one and lasted for 23 years. Bookey pointed out the hoe would be of limited use on the east side of town due to the water table. Also, trench boxes would have to be purchased, etc. COUNCIL DECIDED NOT TO PURCHASE A NEW HOE. MAKE DO WITH THE DROTT HOE AND CONTRACT OUT FOR ANY LARGE JOBS THAT ARISE. j. Water/Sewer Pick-Up Replacement - Council reviewed the justification for the replacement of the water/sewer truck which was included in the packet. Remarks included in the justification were that the truck "fails to meet their needs." Williams asked why the truck was purchased two years ago. Bookey added he didn't understand this either. He believes the truck should be used a couple more years. A new 4x4 was purchase last year. There are only three people in the water/sewer department. Kornelis explained they asked for a new truck because Parks & Rec needs this one. They have found instances where they needed a 4x4. A short discussion followed. Bannock felt they could purchase a 4x4 and give the 1992 truck to Parks & Rec or pay $10,000 for a used truck for Parks & Rec. Williams stated there will not be new trucks, etc. purchased next year. COUNCIL A~REED TO THE BUDGETED PURCHASE OF A 4X4 TRUCK TO REPLACE THE WATER/SEWER TRUCK. THE WATER/SEWER TRUCK (1992) IS TO BE TRANSFERRED TO THE PARKS & RECREATION DEPARTMENT FOR THEIR USE. KENAI CITY COUNCIL BUDGET WORK SESSION MAY 10, 1995 PAGE 7 k. Computer/Printer - Kornelis stated the computer/printer would tie the STP into the alarm system now monitored by the Police Department. The cost is budgeted at $5,000. COUNCIL APPROVED THE BUDGETED PURCHASE OF A COMPUTER/PRINTER FOR THE AMOUNT OF $5,000. 1. Street Lights - Kornelis referred to the information included in the packet reminding Council they had requested he develop a list and cost for ten street lights. Williams asked Manninen if there was any update in regard to street light maintenance discussions with HEA. Manninen responded by stating he believed they were getting very close to an agreement. They should have one by July 1. The City has a proposed agreement to review by Kornelis, manninen and Graves and hope to get HEA to agree to it. Kornelis added HEA has stated they will meter all the lights at their cost. Discussion followed in regard to the list of lights given to Council. Smalley felt the light on Forest should be removed as it is the responsibility of the State or School District to have another light placed there. Kornelis explained the list represents lights requested and not necessarily what Public Works recommends. Council mentioned they would like an ordinance developed which would require developers of subdivisions to pave, place street lights, etc. in the subdivision being developed. Kornelis further explained the light on Trading Bay and toward the tower was recommended by the Police Department. Bannock stated he would prefer the lights be placed in residential areas and add one in Inlet Woods. Williams suggested approving ten lights for this year and ten more next year. COUNCIL AGREED TO PLACE TEN STREET LIGHTS THIS YEAR. REMOVE FROM THE LIST, THE ONES ON TRADING BAY, NORTH WILLOW AND NORTH FOREST DRIVE. KENAI CITY COUNCIL BUDGET WORK SESSION MAY 10, 1995 PAGE 8 Kornelis is to work with the State in regard to placement of additional street lights. The State is to rebuild the road to the City's specifications. Additional lights should be included in those specifications. m. Buildings/Repair & Maintenance- Bookey asked if the maintenance manuals for all the City's buildings were completed. Kornelis answered yes. Measles stated he was concerned that preventative maintenance on the boiler systems was being deferred. He believes that work should be done annually. Springer explained he originally requested the maintenance be contracted out to the private sector. He means "deferring" to be not done by a contractor, but in-house. In-house, the work will get done, but may not be done as quickly or thoroughly as if it was contracted out. Williams asked if State safety inspectors were paid for each inspection. Springer answered yes, and added the water in the boilers are tested monthly. Bookey asked why the tile at the Visitors Center was not being replaced by the contractor. Kornelis answered it has been replaced by the contractor and repaired a couple of times. The warranty has now run out. Williams stated next year they won't buy pick-up trucks, but will spend money on building maintenance. COUNCIL MADE NO ADDITIONAL .CHAN~ES. n. Flight Service Station - Council reviewed the information from Springer which was included in the packet. Williams asked what the bottom-line cost for repair on the FSS building are estimated to be. Springer explained he has budgeted for $3,000 which he feels will cover the cost of repairs for which the city is responsible. Springer added he believes the other items they are requesting are to upgrade the building. They want something that is above and beyond what the building was designed. Bookey asked what the agreement states as the city's responsibility. Kornelis answered maintenance, not upgrading. Springer added, the building was originally designed to FAA's specifications. FAA now feels there is a problem with the KENAI CITY COUNCIL BUDGET WORK SESSION MAY 10, 1995 PAGE 9 ventilation system and have asked for an analysis to be done by a company from Virginia. The analysis was completed and F.~a~ has now come back with recommendations to upgrade the system. He has reviewed their requests and pulled out the maintenance items. Williams suggested Manninen should discuss the matter with the director at the FSS building and find out what they have in mind in their budget for the facility. Williams asked Manninen if he has discussed the matter with the FSS personnel. Manninen answered no. Williams added he thinks it would be the proper thing to do. Smalley agreed. Kornelis added the $3,000 Springer feels is needed for the repairs for which the City is responsible is already included in the Airport budget. Williams stated if after discussing the matter with them, Manninen finds the City needs to do other work, there is money available in the Airport budgets. The City never intended to upgrade the building (for $1 a year). Airport Manager Ernst stated he agrees with Springer's remarks. They need to find the money to upgrade the building. COUNCIL AGREED TO KEEP THE $3,000 INCLUDED IN THE BUDGET FOR THE FSS REPAIRS. MANNINEN AND ERNST ARE TO DISCUSS THE MATTER WITH FSS PERSONNEL. Cherie Woods Letter (personal trainer): Williams referred to the letter from Cherie Woods which was included in the packet. McGillivray explained Woods felt she did not explain herself very well at a previous budget work session and sent the letter to clarify her remarks. McGillivray will bring additional information in regard to costs and benefits of having a personal trainer on staff to the June 7 council meeting as previously requested by council. DIRECTION TO ADMINISTRATION: COUNCIL DIRECTED ADMINISTRATION TO PRODUCE A LIST OF VEHICLES, BY DEPARTMENT, WITH THE MAKE, MODEL, YEAR, MILEAgE/HOURS USED, AND THE SERVICE FOR WHICH THE VEHICLE IS USED. THIS INFORMATION SHOULD BE INCLUDED IN THE PACKET FOR THE JUNE 7 MEETINg. KENAI CITY COUNCIL BUDGET WORK SESSION MAY 10, 1995 PAGE 10 Kenai Fire Department: Because some of the councilmembers were not available at the work session, it was requested this discussion take place during the June 7 council meeting. Smalley noted money was included in the Fire Department budget. Williams reminded Council there is the question of whether that money should be used for three additional personnel, etc. COUNCIL AGREED TO DISCUSS THE NEED FOR THREE ADDITIONAL PERSONNEL FOR THE FIRE DEPARTMENT AT THE JUNE 7 COUNCIL MEETING. Kenai Police Department a. Patrol Car Purchases - Williams requested justification for the need of new patrol cars from Chief Morris. Morris explained the two vehicles to be replaced have 98,000 and 117,000 miles. Both have had their floor boards patched. COUNCIL APPROVED THE BUDGET PURCHASE OF TWO NEW PATROL CARS FOR THE KENAI POLICE DEP~RTMENT. ITEM 5: ADJOURNMENT Mayor Williams noted he believed this was the last of the budget work sessions. Other decisions will be made during the council meeting of June 7. The work session dismissed at 9-15 p.m. Notes transcribed and submitted by: Carol L. Frea~/, city Clerk 5/11/95 CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ 1992 MEMORANDUM TO' FROM: DATE: RE.' Mayor John Williams & Kenai City Council Members Thomas J. Manninen, City Manager~b~ March 31, 1995 ~ FY95-96 BUDGET MEMORANDUM The FY96 city operating budget is submitted in accordance with KMC 7.25.010. The FY95-96 budget schedule is attached as Exhibit I. A first draft FY96 budget was reviewed by the city manager with the department heads. Several costs and changes (discussed in detail) result in this city manager's recommended FY96 budget. This FY96 budget is presented as a city manager's recommended FY96 budget to the city council at the April 5 council meeting. The column labeled'"Manager Recommended, 95-96" reflects the revised budget figures for FY96. Several budget review meetings, as well as a public hearing, will precede FY96 budget adoption. FY96 BUDGET PRIORITIES 1. CAPITAL EQUIPMENT, PLANS/EXPENDITURES; MAINTENANCE OF EFFORT AND PERSONNEL STABILITY CITY-WIDE. 2. GENERAL FUND CAPITAL EQUIPMENT REPLACEMENT- PROJECTED USES AND RESERVE BALANCE: The estimated June 30, 1995 beginning general fund capital equipment reserve balance is $659,500. A total FY96 budgeted/projected expenditures is $483,000. The FY96 annual contribution this reserve is still $300,000. These city manager recommended capital equipment expenditures leave an estimated FY96 balance of $476,500 in this reserve account (see the attached Exhibit I, March 24, 1995 Equipment Replacement Reserve Projected Uses and Balance detail for FY96). This proposed FY96 budget general fund expenditure detail for capital equipment is as follows- ~ENE~ FUND E~U'rPMENT RESERVE: FY96 PROJECTED EXPENDITURES Public works Vehicles Response trailer Snow blower Library Computer Police Vehicles Parks and recreation Parks Maint. Equipment Fire Ambulance FY96 73,000 22,000 135,000 75,000 44,000 9,000 125,000 C~~ES/REDUCTIONS FROH OR'r~'rN~., C~PIT~., REQUESTS: Items deleted from the original department budget expenditure requests include a $208,000 grader and police radios for $7,200. These were moved to FY97 and are being purchased through general fund FY96 operating revenues, respectively. Also, proposed park restrooms were deleted as they were not classified as "equipment" but were "buildings" proposed to be funded in FY95 One senior citizen vehicle was deleted, it is not general fund. Furthermore, of the FY96 city manager proposed budget's $483,000 expenditure total for equipment replacement reserve expenditures, there is a pending two-thirds grant application for $87,500 through an ambulance grant. Nevertheless, $125,000 is budgeted in case the grant is not received. These capital equipment expenditures are a significant priority in the FY96 budget representing nearly $500,000 or 16% of this proposed FY96 budgets' projected general fund expenditures of $7,941,445. About $230,000 of these proposed capital equipment expenditures are for public works, including vehicles, a safety response trailer and snow blower, respectively. WATER/SEWER EXCAVATOR PURCI~ASE DILEHMA: NEED OR FISCL~L TIMIN~ Public works also provides the basic public utilities, including vital public health water and sewer services. Kenai, to continue to be progressive, must provide the modern equipment and training to maintain its public water and sewer systems' safe and sanitary services. To this end, a major expensive item is proposed in this city manager budget for the purchase of a capital equipment excavator for water and sewer use. However, the dilemma is that a purchase of the needed equipment excavator will drive the water and sewer fund into a deficit, but it needs replacement. The old one is over 15 years old and is ready for replacement. This is much needed (see public works' need letter). It is budgeted in the water and sewer enterprise fund and represents a significant (over $176,000) equipment expenditure for FY96. The council may consider a cut here for FY96 to balance the water/sewer fund FYE96 without the deletion of the $176,000 proposed excavator purchase. The water/sewer fund has a $103,458 deficit at June 30, 1996. Let's discuss it; it can be deferred for another year to solve the fiscal issue. The original request for the equipment replacement reserve expenditures was $616,000. After department head reviews, the final city manager approved request is $607,793. Although this proposed budget represents a $133,000 reduction from the FY96 budget's original capital equipment requests, it was increased after city manager budget reviews with department heads. I hope this lengthy discussion of capital equipment proposals is not too boring. It represents a significant new direction that the council may want to consider and discuss in FY96 budget sessions. NAI~EN~CE BUDGET, 2.5% PERSONNE?. INCR_~_~SES; OS~ 8~?ETY · RAINING: I hope that the council will agree with my assessment that the FY96 budget is a maintenance budget, providing a 2.65% total increase of wages/salaries with no personnel reductions/eliminations. Also, the total FY96 wage/benefit package is reduced by .1.78% from FY95. A new FY96 program is a city-wide safety program, resulting from the city's recent voluntary OSI~ compliance inspection and report. The original budget request for this new safety program was nearly $40,000. After review and restructuring, it was pared to about $23,000. Administrative staff expects that there will be some significant savings "to a fraction of this proposed cost" through collaboration with other private sector sources of safety training. I expect that individual council members will have major input into this new city-safety program. WATER WELL DEVELOPMENT: Also, the budget provides for following through with other non- general fund services that the citizens' surveys indicated as being most important based on the 1993 Public Opinion Survey -- water, water and water! This FY96 proposed budget provides for the continued program of testing and developing the new water well source of supply between water wells #1 and #2 on the Kenai Spur Highway. The city is actively lobbying for other state funding sources to help supplement or pay entirely for $1,200,000 of this water well development cost (both legislative and governor capital matching grant funds). OVERALL BUDGET SU~HARY Before we get into too much detail on the FY96 budget, the overall budget provides for the following- '1. NO TZ~.X I~TE ZNCRF~SE; THE MZLL I~TE Zig UNCHJ~GED ~T 3.5. ONE MZLL EQUIPS 2U3OUT $:300,000. NO S2~T.,ES T2~ I~TE ZNCRF~SE. THE S2~T.,ES TAX REN~ZNS ~T 3%. ONE PElt, CENT OF S2~T.,ES TJ~,.X EQUIPS $1,3.3.6,667, OR THE EQUZVJ~ENT OF 3.'7 MZLLS. 3. NO W~TER OR SERER UTZLZTY I~.TE ZNCRF~SES ~E PROPOSED. 4. NO NEt; FULL-TZME EQUZ~ENT E~PLOYEEI~ 2~E ZNCLUDED ZN THE PROPOSED GENER2~ FUND BUDGET EXCEPT FOB. & FE~ PART-TZHE HOURS FOB. YJ~D I~Z~~~CE 2~T THE SENZOR CENTER. NO PJ~Y RidGE CHJtNGES G~ED FOR 2~NY F~PLOYEES ZN THE PROPOSED BUDGET. 6. SZGNZFZCJ~NT PERS ~ WORKERS COMPENE~J~TZON REDUCTZONS ~E REFLECTED. THE CZTY' S P~B ~TE ~~ 4.77~ ~BT Y~. ZN FY96 ZT gZLL BE L.03~ OF P~~OLL; THZS WZLL S~VE ~L35~4~2/77~ ZN FY96. ZN FYg~ THE P~S ~TE W~S 3.7~ -- ZN FY92~ 3.73~- FY93~ 0~- FY94~ 3.9L~- FY95~ 4.77~- FY96~ · .03~. ~80~ WORK,S COHP~B~TZON REDUCTZON8 ~O~ TO ~L8~55L ZN FY96 -- ~LY ~ 12~ REDUCTZON FROH FY95. 7. HEJ~TH ZNBURJtNCE COSTS 2~E ESTZI~TED &T $5~800 PER E~PLOYEE~ THZB ZB THE 8~ 2~ FY95 TOTZ~T~ COST $423~000. 8. THZB FY96 BUDGET ZNCLUDE8 ~ 2.5% P~Y I~ZSE FOR ALL CZTY EHPLOYEEB~ EXCEPT FOR JOB TR~ZNZNG POBZTZONB ~T THE SENZOR CENTER. THE COST OF THZ8 2.5% I~ZBE ZB 2~PPROXZ~TELY $102 · 000 ZN 8~ZE8 ~ BENEFZT8 ZN THE GENER2~ FUND. SEE E__~__ZBZT VZZ FOR HZSTORZC~., C.P.Z. D~T& CONPARED TO KENJ~Z I~ZBE8. NOTE THaT CZTY EHPLOYEE8 DZD NOT RECEZVE A COST OF LZVZNG I~ZBE ZN FY94~ RECEZVED ~ 4% I~ZBE ZN FY95~ AND IrZTH THZI~ PROPOSED 2.5% ZNCRF~SE FOR FY96~ CZTY EHPLOYEES WZLL 8TZLL BE RECEZVZNG LEaS TH2~ THE C.P.Z. ~VEI~GES FOR THZB HZ BTORZCJ~T., PERZOD. 9. THE FY96 BUDGET CONTZNUE8 & $300~000 CONTRZBUTZON TO THE EQUZPMENT REPL~C~E~ RESERVE ~8 WELL ~8 2U)DZNG $75~000 TO THE GENE~ FUND CONTZNGENCY (BEE EFF~__ZBZT ZZ) . THE FY9 6 TOTJ~T~ GENER2~ FUND EXPENDZTURE ZB PROPOSED AT $7 · 941 · 445. THZB ZE~ ~ $265~957 TOTJtT., GENER2~ FUND ZNCRF~SE FROH FY95. IT REPRESENTS & 3.47% GENERJtL FUND BUDGET ZNCRF~SE- EVEN THOUGH CAPZT2~ COSTS ZNCRF~BE BY $220~000 OR 57% FROM FY95. REVENUES: TOT2~ FY96 GENER2~ FUND REVENUE8~ EXCLUSZVE OF 2~PPROPRZ~TZON OF FUND BJ~,J~CE 2~.ND RESERVE8~ ARE UP NEZ~.RLY $800,000 WHEN COMPARED WITH LAST YEAR. Significant FY96 budget changes compared to last year's original budget are recapped as follows below: ..Revenues Increase Decrease Utility franchise taxes Ambulance fees KPB grants (911) Interest on investments Transfers from other funds All other (55,000) 112,000 44,000 285,000 364,125 32,900 Net increase $.. 783 ~ 025 Total FY96 general fund revenues (excluding fund balance and reserve appropriations) are $7,428,470, compared to $6,645,445 last year (see Exhibit $) . ~ENERAL FUND REVENUE; SIGNIFICANT C~~ES FROM FY95 TO FY96 Obviously, a drastic change in FY96 budget revenues is that interest revenue and transfers from other funds are increased by $649,125. This is made up mainly from central administration, fire protection and additional interest revenues. The above mentioned total of significant general fund revenue changes in the FY96 budget totalling $783,025, includes a significant central administration increase from $87,000 in FY95 to $317,500 in FY96. Also, shop services were reduced from $159,000 to $141,500 in the same period, while fire protection cost recovery increased from $52,000 to $250,000 in FY96. Other significant changes from FY95 to FY96 are a reduction of $15,000 in the land trust interest to $75,000 in FY96 and a reduction $30,000 to $23,470 on net income from congregate housing. The total transfers to the general fund in FY96 is projected at $807,470. The following is a recap of all proposed FY96 transfers to the general fund compared with last year's budget- Transfer into General Fund FY95 FY96 Central Admin. (includes accounting) Shop services Fire protection Land trust fund interest Net income, congregate housing $87,000 $317,500 159,000 141,500 52,000 250,000 90,000 75,000 .. 55,345 23,470 Total FY95 Transfers $443,345 $807~470 The FY96 first budget page shows a summary of transfer data by each fund. APPROPRIATION OF FUND B~_L_~NC~. For the FY96 budget, this number, as a balancing figure, is pegged at only $29,975, compared with $684,993 FY95. It is the lowest appropriation needed from general fund balance in any recent budget. Largely due t.o the increase in transfers into the general fund (described above) and in increased returns on the city's investments. Normally, there has been a $700,000 -- $800,000 balancing figure. In fact, the appropriation of general fund balance does not reflect true revenues; they are really monies taken from various savings accounts to balance the general fund budget. For availability of funds see the Exhibit III, showing city finance director Charles Brown's latest estimates of the City's projected June 30, 1995 reserves and fund balances. Since fund availability is not the question, establishing a prudent amount to draw from savings to use in the FY96 budget is the difficult choice for the Council to make. There are several methods, including: 1. Usually $250,000 of a normal general fund budget simply won't be spent. This represents only about 3% of the total general fund budget. Since turnover, vacancies and long vacations usually will result in monies not being spent that were budgeted. Therefore, generally the first $250,000 appropriated from unreserved general fund balance will probably not really reduce the account by the end of FY96. Since the appropriation from general fund balance is approximately $30,000 in FY96 compared to $684,993 in FY95, this projected general fund balancing figure, plus $200,000 historically, may not be spent, although it will be budgeted as a balancing figure. Based on past spending, the city may save $200,000 by this process repeating in FY96. It is also expected that the general fund unappropriated undesignated balance, at June 30, 1995, will increase from approximately $6.8 million to about $7.2 million. 2. A $30,000 appropriation from the unreservead fund balance towards the FY96 budget would result in no decrease in the unreserved account from June 30, 1995 to June 30, 1996. 3. The FY95 original budget was balanced by appropriating $588,909; the previous year's appropriation was $586,486. Unappropriated General Fund Balance at June 30th 1990 8,460,630 1991 8,243,531 1992 6,320,352 1993 6,352,618 1994 6,801,205 1995 7,250,000 As indicated earlier, the total annual contribution to the equipment replacement reserve remains the same- it is projected at $300,000 and the estimated beginning balance in FY96 is $659,500. This, along with the expected expenditure levels proposed in this budget will result in an estimated balance at the end of FY96 of $476,500 in the general fund equipment replacement reserve. EOUIPMENT REP_L~_C~ENT RESERVE (SEE ATTAC~ED EX~__IBIT V) Balance June 30, 1994 $704,521 Budgeted, FY95 < 345,050 > Contributed, FY95 300,000 Estimated Balance, June 30, 1995 '~659,471 Proposed Budget, FY96 <483,000> Contributed, FY96 300,000 Estimated Balance, June 30, 1996 '~476,471 Historically, appropriation of fund balance is the $30,000 figure. This is the lowest in recent budget memory, illustrated as follows: APPROPRIATIONS OF ~ENERAL FUND UNAPPROPRIATED FUND BALANCE: year ADpropriation of Fund Balance FY90 $ 486,906 FY91 1,017,223 FY92 731,439 FY93 702,562 FY94 586,486 FY95 684,993 FY96 29,975 (Projected) Obviously, a drastic change in FY96 budget revenues is that interest revenue and transfers from other funds are increased by $649,125. This is made up mainly from the central administration, fire protection, and additional interest revenues. PROPERTY TAXES; NO CHANGES. THE ESTIMATE HAS INCREASED BY APPROXIMATELY $24,000 TO REFLECT INCREASED VALUATIONS. SALES TAXES; NO CHANGE. THE FY96 BUDGET ESTIMATES $3,350,000, THE SAME A8 LAST YEAR. Although the two last calendar quarters were down 7.9% and 11.2% respectively from FY94, the overall taxable sales by jurisdiction indicates that Kenai has held its own from '93 to '94, and we may be lucky to get the budgeted amount in 1995-96. The sales tax has been approximately 43% of the general fund's budgeted revenues for the past five years and we expect it to continue as the top significant revenue producer in F¥96. STATE REVENUE SHARIN(~ AND HUN-~'CIPAL ~SS'rSTANCE- THE BUDGET'S ARE ABOUT THE SAME /%S LAST YEAR, AND 'tN F/~CT, 15% LESS THAN THE ACTUAL FY9$ RECEIPTS ARE BUD(~ETED FOR FY96. 'rNTEREST ON 'rNVESTHENTS. TH'rS REVENUE 'rTEM H~S 'rNCRE~SED BY $2~$~000~ MOSTLY BECAUSE THE ~NTEREST I~TE PROJECT'rON OF 6.0%; COMPARED WITH 4.5% IN FYg$. Each reduction of a half percent on the total principal for a year would reduce general fund revenues by about $73,000. ~ENEIt~L FUND EXPENDITURES FY96 general fund expenditures are up by $265,957. Significant new programs funded in this budget include safety training and coordination. These amounts are spread throughout the various departmental budgets and are reflected in increased miscellaneous and transportation costs. (This was described earlier in this letter). Another item, not budgeted for in the FY96 operation budget is the potential remediation of contaminated soils on public works property. The city fully expects to appropriate funds at a level that is undetermined presently for continuation of Phase I and Phase II studies on the city's public works property that may result in eventual yet unbudgeted remediation, engineering, legal fees and litigation expenses. This may be a significant increase in the FY96 budget. Total general fund expenditures are $7,941,445 in FY96, up by $265,957 or 3.5%. Significant changes in the FY96 expenditure budget are shown in Exhibit V. PERSONNEL This is an increase of $93,778 (mostly because of the 2.5% raise). Nevertheless, salaries and benefits are down by $87,763. This is due to a change in the method of budgeting annual leave, saving $50,342 and a PERS PERCENTAGE REDUCTION from 4.775% of payroll to 1.03% of payroll, saving $135,432 in FY96. THEREFORE, EVEN WITH THE COLA RAISE, THE TOTAL SALARY AND BENEFITS IN THI~ PROJECTED BUDGET FOR FYg$ ARE LESS THAN LAST YEAR. The FY96 budget for personnel, is a maintenance of effort budget. There are no new full-time positions. A 2.5% C.P.I. salary increase is budgeted. The FY96 budget has no "range changes" for existing positions/classifications. Also, no positions have been upgraded from one range to another. Furthermore, all classified positions that are "topped out" at the maximum step and range are frozen. These positions receive a maximum budgeted FY96 increase of 2.5%. However, positions/employees within existing steps, are budgeted for a step increase as well as the 2.5% increase (those not "topped out")'. The FY96 budgeted 2.5% pay raise excludes the four job training positions at the senior center and with the exception of a few hours for gardening/yard maintenance at the senior center, there are no new employees proposed in the FY96 budget. PERSONNEL COST AVOIDANCE Additionally, several departments requested more personnel funding, either through new requests for full-time employee positions or by a significantly changing existing pay range for existing positions. None of the range change requests were granted. Any range change for existing personnel would create an inequity in the city's existing position classification system. Therefore, I have not included any budget range or position classification upgrades or changes for existing positions and no new positions are proposed in this FY96 budget. New positions were requested but not funded in this budget. Namely, positions in the fire department and city manager departments. Contrary to prior council discussions, I deleted the proposed three new full- time fire fighters as well as the assistant city manager position from the city manager proposed FY96 budget. If the city council wishes to add these to the budget, the three new fire fighter positions would cost an additional $200,000 and the new assistant city manager position would cost approximately $80,000 -- $100,000. Both the fire fighter positions and the assistant city manager position costs would total between $200,000 -- $300,000 for wages and benefits. These costs are not reflected in this proposed FY96 budget. CAPITAL COSTS Capital costs are up $220,315 or 56.9% in spite of the reduction of the $250,000 tanker from last year's budget dropping out of FY96 budget. This proposed budget does include some significant capital expenditures detailed in Exhibit VI. I will summarize some FY96 expenditures. CITY CLERK Office supplies $4,300 for software and $23,000 for new document imaging. VISITOR'S CENTER Requested an additional $25,000. This is not in the city manager's proposed FY96 budget. I expect a delegation from the visitor's center to discuss this request with the city council. The original budget letter request did not specify what the $25,000 was to be spent on, but personal discussions with the director and the visitor's center chairman indicated it was for brochures and other publications and merchandising. I expect a personal presentation for the council from the group during the budget review sessions. CITY ATTORNEY Increase professional services by $25,000 (Inlet Woods). NON-DEPARTMENTaL Insurance increase by $20,000. POLICE DEPARTMENT Machinery and equipment- One new vehicle, phone and radios. FIRE DEPARTMENT Small tools and minor equipment- $8,110 refurbishing an old engine was deleted for approximately $30,000 and new ambulance is budgeted at $125,000 with the possibility of an $87,500 two- thirds state grant. The request for three new fireman was excluded from the FY96 budget. PUBLIC WORKS ADMINISTP. ATION Includes books and miscellaneous increases of $1,645 and $7,435, respectively. This may be reduced significantly, as well as a transportation increase of $5,230, mostly for safety-related training. The machinery and equipment is increased by $21,000 for a new truck for the city engineer. This would replace one that is approximately 12 years old and in need of replacement. SHOP MISCELLANEOUS Includes safety training, $2,195 and machinery and equipment increase of $55,000 for a furnace, truck and safety trailer. STREETS Repair and maintenance supplies were increased by $13,000, mainly for gravel and oil sealing for road supplies. Miscellaneous by $5,000 for safety training programs. Machinery and equipment was increased. Originally the request was $350,500 for forks, truck, grader and snowblower. The grader was deleted for $208,000. BUILDINGS Repair and maintenance supplies, repairs and maintenance and miscellaneous, increased by $4,000, $26,000 and $21,095 respectively, in transportation by $25,050. The significant reduction would be for safety training courses, transportation and training. 10 LIBRARY Library includes additional budgeted amount for machinery and equipment of $13,500 for a CD ROM, PC and receipt system as well as $75,000 for a Dynix Computer System and approximately $17,500 for architect's drawings for the addition to the library. The latter two items were not included in the original department request for FY96, but were added during the budget review process. RECREATION Includes additional in professional services of $5,730 for a wellness program. Miscellaneous increase of $2,450 for safety training and machinery and equipment of $7,300 for a treadmill, ping pong tables, new telephone system and video camera. PARKS Rentals up by $2,000. Buildings- $70,000 was deleted for new restrooms (this would be funded through the FY95 funds per the recent council meeting). Machinery and equipment, including $9,000 for a new mower. FY96 (~ENERAL FUND SUKMARY: Many operating accounts, particularly in transportation and miscellaneous have increased in FY96 due mainly to the safety program implementation. This may be pared down from the original and city manager's proposed budget request with more council discussions and discussions with service providers. The level of capital expenditures requested in FY96 and the subsequent four years to be financed by the equipment replacement reserve will need an additional appropriation above the $300,000 annual contribution in the future (See Exhibit VI). That requires a FY90 annual contribution of $338,500, and in FY99, $452,000, but the other three fiscal years, FY96, FY97 and FY2000 would require the normal/historical $300,000 appropriation. The net changes in FY96 general fund from the original request is <236,430>. GENERAL FUND EXPENDITURES: C_~_aNGES FROM FIRST DR~FT: These are the changes from the first draft- P & Z $ <30> Fire ($188,000) 3 new propoSed fire fighters <27,500> Animal Control < 1,705> Public Works Administration < 155> Shop <13,460> Streets <215,240> Buildings < 1,840> 11 Library (Dynix computer system & architectural fees new addition Recreation ~. Parks Total General Fund +92,500 +1,000 <70,000> BO~TIN~ FACILITY In FY95, I expect an operating loss of $32,000. Retained earnings at June 30, 1995 should be about $166,000. At June 30, 1993, retained earnings was $254,000. So, this fund has lost about $88,000 in two years. The proposed FY96 budget calls for another loss of $90,370 (not counting $20,000 of capital purchases that will be depreciated in future years, adding to financial problems). I guess we now know why private enterprise didn't build a similar facility. The cash position of this fund should be about $180,000 at June 30, 1995. If we lose $90,370 in FY96, and spend $20,000 on capital items (then add back the depreciation of $25,000), we have an estimated cash position of about $95,000 at June 30, 1996. At some point, it may be necessary to face some harsh realities about this enterprise. , . The $9,000 oil absorbent boom was moved from machinery and equipment to operating supplies. In turn, this added $9,000 to the appropriation of retained earnings. The annual deficit goes from $81,370 to $90,370. AIRPORT TERMINAL This fund is balanced with excess revenues (contingency) of $69,489. CON~RE~TE HOUSIN~ This fund is in balance. One change is that 25% of the senior citizen director's salary and benefits are now charged here; this was 5% last year. This serves to reduce the net income transferred to the general fund. In other words,· by an accounting maneuver, the general fund ends up financing an additional $14,330 of senior citizen (not congregate housing) operations. WATER AND SEWER My guess is that fund balance at June 30, 1995 will be about $250,000. This is after the $90,000 we appropriated recently for 12 the new water well. Plus, there's still the $350,000 or so of water and sewer money in the two Thompson Park Capital Project Funds that could be returned some day if we ever.close the projects. Frankly, I don't know what any of this means. There are so many large, loosely defined projects i~ the early stages (water well, water quality, sewer treatment) that it is nearly impossible to plan long-term. Given that, let's get to the proposed FY96 budget. It's grown $138,458, or 11.9%. It has a revenue shortfall of $103,458 (appropriation of balance). This would be a good time to remind you that the central administrative cost allocation transfer from water and sewer to the general fund is $117,500. This is new this year. THIS, OF COURSE, IS THE DOWN SIDE TO A COST ~LLOCATION PL~_W; THE ~ENERAL FUND'S ~IN IS ~OT~R FUND'S ~OSS. With demands of this fund's resources so great, considering that no appropriation of fund balance was necessary last year, and considering that rates were increased substantially just a few years ago, I think your goal might well be to cut $150,000 or more from this fund. It would be nice to restore the contingency accounts, which are now at zero. TARGET- $176,000 EXCAVATOR, IF DEFERRED TO FUTURE YEAR OR CUT THE WATER AND SEWER FUNDS -- BUILD A SAFE FUND BALANCE INSTEAD OF AN ANNUAL DEFICIT OF $103,458. Water Machinery & Equipment- +88,250 (computer, excavator, truck). Sewer Machinery & Equipment: +88,250 (same as above). Also, look at all other expense accounts. You'll see many large increases. AIRPORT LAND SYSTEM The fund's expenditures have increased $255,993, but that is very misleading. Transfers to General Fund have increased $218,000. Contingencies have increased $18,352. These have been fully compensated with revenue increases, mostly interest revenue. There's not a whole lot new here. I've already mentioned that more of the Senior Citizen Director's salary and benefits is being charged to Congregate Housing. Title III fund is mostly unchanged. 13 The COA -- Borough fund has increased $16,455, or 15%. This leaves a revenue shortfall (appropriation of fund balance) of $12,385. About $25,000 is available in fund balance. The only big deal is a $25,000 station wagon. I guess you might say that's where the "net income" money that would have gone to the general fund went (see congregate housing above). The general fund is transferring $23,892 to cover utilities, plus pays insurance, provides building maintenance at no cost, and absorbs central administrative costs. People are fond of saying the senior center is self supporting and is not financed by city taxpayers. DEBT SERVICE No change here. Of $377,660 in debt service payments, $286,260 is covered by a transfer from General Fund. This is actually less than last year. Of course, the transfer is necessary because of Inlet Woods. Attachments C: \WPDOCS\T JM\BUOGET3.HEM 14 1995-96 BUDGET SCHEDULE Exhibit 1 MO DY YR 3 I5~95 SEND..'RI~OI~EST PORMS TO DKPTS REOUESTS.:.DI/E BACK TO FINANCE FINANCE'.ASSI~M~LE$ 1ST DRAFT & ANALYSIS FOR C.M, 4 39' C.M. COMPLETES REViEk'. DISCUSSIONS WITH DEPTS.. RECOMMEND. FINANCE COMPLETES DRAFT BUDGET & MEMO FOR C.M, C.F., PREPARES BUDGET MEMO FOR COUNCIL 59: 10 95 179: i7 ~= 795 795 BUDGET:'PRKSENTED TQ COUNCIL AT THIS MEETING !NTRO.ORD-ON..ANY PEtSONNEL CHANGES (RAISES, POSITIONS. ET.C,} CO~CIL WORKSE$SIONS COMPLETE INTRO ORD ON BUDGEi MOTIONS TO SET CM. CA. SC PAY. iF CHANGED ADOPT DRD ON ?ERSONKEL CHANGES AD ON BUDGET HEARING RE$OON .LEASE ~ATES-TERMINAL ItF NEEDEDi ADOPT'ORD ON BUDGET ADOPT RE~O ON MiLL ?ATE GENERAL ~UND ~WEN~E$ ~0! ACCO~.~ TITLE !995-96 ICCT ~, Exhibit $:1 O~I~INAL i2-31-94 12-3!-94 .~%NAGER INCREA$~ ACTUAL ACTUAL ESTIMATE ESTI~TE ACTUAL RKCOMM. OHH H95 1992-93 !993-94 !994-95 !994-95 !994-95 !995-96 ORIGINAL iNCHEASE APPROPRIATION ~? ?UND BALAHCE APPROPRIATION .9? RESERVED REAL PROPERTY. CURRENT REAL PROPERTY. ?RIOR ~R~O~AL PRO~I~T~. CURRHT PERSONAL ~ROHIT!. FR!OR GIL PROPERTY. CTRRHT ~IRtONAL PROP.-VEHICLE INTEREST ON SALES HOTEL/MOTEL ROO~ TAX UTILITY F~NCHISES BUILDING PERMITS TAXI PE~ITS ANI~L LICENSES OTHER LICENSES AND PE~ITS ANI~L ADOPTION PKKS ANI~L IMPO~ HES A~ULANCE FEDE~L G~NTS. LIB~H K,P,~. GR~S STATE G~S. ~E~L STATE G~TS, LiBbY STATE REVENUE S~RING STATE MUHICIP~ ASSIST~CE ~LICTRIC RECREATION CE~ER C~RGES MEN'S BASKETB~L PROG~ CEMETERY PHS COURT ~INES LiB~Y PINKS DEA FORFEITURES I~EREST ON I~STMENTS LiB~RY DONATIONS MISCELLANEOUS DONATIONS RE~S AND LEA~H TIDELANDS OIL & GAS LEASE~ROYALTIES SPEC, ASSESS, PRINCIPAL SPEC, ASSESS, I~E~ST SALE OP OTHER ASSETS MISCEL~NEOUS ~VENUE OIL SPILL T~NS~ERS IN-BOATING ~ACIL. TR~SPERS IN-TK~IRAL T~NSFERS IN-A~RPORT LAND SYS, T~SPKRS IN-WASH ~D SEWER T~NSFERS IN-TN]ST F~D TR~SPERS IH-COHGREG, HOUSING 30000 30001 31110 31111 31112 31113 31114 31116 31119 3113~ 3113§ 31140 32221 32222 ~2222 3222t 32225 3222H 32228 3332D 33330 33340 33341 33350 33351 33352 33353 33354 33355 34421 34440 34450 34451 34452 3446O 35512 35513 35514 366i0 36614 36616 36620 36621 36623 3663O 36631 36641 36650 36651 39950 39951 39952 39953 39957 39959 0 0 684.993 761.537 0 29.~75 { 65§.018) O 0 345.05~ 349.050 0 483.000 137.950 784.307 810.850 S54.000 854.000 846.169 864.500 10.500 12.308 10.177 15,000 15.000 9.894 i5.000 0 0.01 150.621 !55.720 153.000 153.000 i51.693 !59.500 6,500 4,2% !1.126 9.178 5.000 5.000 14,507 10.000 5.000 !00,0% 23.905 28.928 23.000 23.000 22,920 20.000 (3,000) 'I3.0% 2{.286 30.92~ 27.000 27.000 12.413 29.000 2,000 7.i% 13.182 I0.542 10.000 IO.O00 17.757 13.000 3.OOO 30.0% 2.880,55~ 3,480.784 3.350.000 3.350.000 !.779.198 Z.350.000 0 0.0% 8.135 !08.441 85.000 85.000 60.029 95.000 IO.OOO I1.8% 52.356 48.153 55.000 55.000 0 0 { 55.000) '100.0% 32,453 41,808 35,000 35.000 I5.779 35,000 0 0.0% 2.050 1.700 2.000 2.000 100 2.000 0 0.0% i.225 1.087 !,000 1.000 387 1.000 0 0.0% 330 565 C 0 400 2.500 2.500 1.675 2.I!7 2.000 2.000 815 2.000 0 0.8% 2.351 2.860 2.000 2.000 981 2.000 0 0.0% ~ C 0 0 O !I2.000 ii2.000 0 0 0 1.560 1.560 44.000 44.000 85.413 285.626 0 22.475 3.875 O 0 22.115 16.533 0 13.862 I3,862 0 0 302,046 260,323 i90.00C !93.636 241,912 205.000 15.000 7.9% 515.429 486.265 Z72,000 372,000 0 355.000 { i7,0001 '4.~% 3{2,411 121,591 200,000 200.000 0 175.000 { 25,0001 '12.5% 16.600 46.450 i8.000 I8.000 0 40.000 22.000 35.000 36.263 35.000 35.D00 0 36.000 1.000 1.8(8 1.(42 4.000 t.O00 61 1.500 ( 2,5001 '62.5% 1.128 1.376 1.OOO 1.000 286 1.000 0 0,0% 640 825 500 500 70 500 0 0.0% 58.495 76.906 60,000 60.000 25.361 61.500 1.500 2.5t 7.220 7.107 8.500 10.600 5,047 9.000 500 5.9% 7.710 8.620 ?.OOD 7.000 1.820 8,000 1.DO0 14.3% 2.350 !.850 !.500 1.500 1.900 2.000 500 33.3% i5.862 27.14' 22.000 22.000 12.458 ~2.D00 0 0.0% 10.809 12.{49 ii.000 iI.OOO 5,674 il.O00 0 0.0% 2.980 0 C 0 '0 0 0 608.261 558.595 600.000 600.000 651,564 885.000 285.000 47.5% 2.465 2.135 D 0 2.045 0 0 1.716 1.110 0 0 995 0 0 28,92~ 28,3i5 29,00~ 29.000 18.310 28.000 ! 1.OOOl '3.4% 3.695 4.286 3.600 3.600 4.125 4.000 400 11.11 22.5i2 19.921 0 0 8.220 0 0 9.569 10,062 0 0 23.836 0 0 1.439 696 0 O 0 0 O !1.301 8.074 ' 0 42.727 0 0 !3.667 27.839 ~O.O00 20.000 5.345 20.000 0 0.0% i47.379 0 0 0 0 0 0 0 0 0 0 0 26.000 26,000 5.000 5.000 7.000 7.000 7.000 36.000 29.000 414.3% 237.000 ~75.000 219.000 219.000 219.000 437.000 2i8.000 66.000 69.000 72,000 72.000 72.000 197.500 125.500 1 91.624 78.432 90.000 90.000 0 75.000 ( !5.0001 -!b./% 36.582 11.202 :5.345 :5.345 0 ~5.970 ('9.375) -35.0% 6 71° 231 "" , 3' ......... ., .... ,;93 484 675 488 7.799 66.5 4. 302 09.2 7 941 44.5 ?65 957 ~.5% GENERAL Yl'h~. COMPARISON 0? FY95 & F¥96 BUDGETS 3-27-95 SALARIES HOLIDAY PAY OVERTIME ANNUAL LEAVE MEDICAID SOCIAL SECURITY PERS ~.S.C. WORKERS COMP. HEALTH & LiFE SUPPLEMENTAL RETIREMENT TOTAL SALARIES & BENKPITS ALL OTHEI DPE~TING COSTS ALL CAPITAL COSTS CONTII~. T~ EQUIP. REP~C. RESERVE CONTINGENCY TOTAL GENEP~L FUND ORIGINAL BUDGET 3,540.431 93.995 131,t00 258.365 26.517 7.640 17~.030 i9.542 156.138 423.262 106.002 4,~37:322 1,975,688 387.478 300.000 7].000 7,675,t88 CITY MGR. PROPOSED 3.634,209 96,I52 143.600 208.023 32.857 7.816 38.598 !9,828 137.587 422.960 1O7.929 4.849.559 2;109.093 607.793 300.000 75,000 7.941.445 iNCREASE ~ DECREASE) 93.?78 2,157 12,200 -50.34.2 6.340 176 -135,432 286 -18.551 -302 1.927 -87,763 133.405 220.315 0 0 265.957 % iNCREASE (DECREASE) 2.65% 2.29% 9.28% -I9.48% 23.91% 2.30% -77.82% 1.46% -11.BB% -0.07% 1.82% -1.78% 6.';5% 56.86% 0.00% 0.00% 3.47% Exhibit II TEMP 17. CAB March 28, 1995 Exhibit III CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794, TELEPHONE 907-283-7535 FAX 907-283-3014 ~ 19~2 CITY OF KENAI, ALASKA Unaudited Financial Data In Thousands of Dollars General Fund: Capital Improvement Reserve Equipment Reserve Working Capital Reserve Other Reserves & Designations Unreserved / Undes ignat ed Total General Fund Balance Boating Fac. Retained Earnings Airport Term. Retained Earnings Cong. Housing Building Reserve Water & Sewer Unres./Undesig. Airport Land Sys. Unres./Undesig. Senior Citizens Unres./Undesig. Debt Service Fund Bal. <Deficit> Capital Project Fund Balances General Land Trust Fund Balance Airport Land Trust Fund Balance Total Resources Total Debt Outstanding Total General Fixed Assets Projected June 30 1995 June 30 1994 $ 980 $ 892 660 705 400 400 637 1,616 7,250 6,801 9,927 10,414 166 198 950 924 190 130 150 167 6,150 5,767 20 17 <60> 32 2,000 2,211 1,850 1,863 10,000 10,068 $ 31,343 $ 3!,791 1,991 90,000 2,258 89,909 June 30 1993 $ 1,150 900 400 1,674 6,353 10,477 254 824 52 795 5,918 21 <122> 1,781 1,865 10,013 $ 31,8.78 2,812 85,576 ~Exhibit IV ~ k-...,-4; ! fl lqllllllll! .11 ,.ll~.,,, ~/F EOUIPMENT REPLACEMENT RESERVE PROJECTED USES & BALANCES ESTIM. BALANCE. BEG. OF YEAR PUBLIC WORKS: DUMP TRUCK ~ESPONSE HNOW BLOWIiR LOADER SWEEPER BOX FOR A~OCAR TI~ BED TRAILER TO~AL P~LIC WORKH LIBRARY' COMgUTER POLICE: V~HICL~H COMPUTER TOTAL POLIC~ PAllS ~ REC.' VEHICLES PARIS MAINT. EQUIPMENT TOTAL PARKH & REC. FIRE: AMBULANCE VEHICLES REHCUE TRUCK FIR] ENGINE TOTAL ~IRE ~Y 9~ 659.500 -73.000 -22.D00 -i35.000 -23D.000 -75.000 -4.4.000 -44.000 -9.000 -9.000 -!25.000 -!25.000 ~Y 97 475.500 -25.000 -85.000 -208.000 -230.000 -30.0OD -579.000 -22.000 -22.000 -29.000 -29.000 -22.000 -itO.O00 -i02.000 YY 98 44.500 -!50.000 -!50.000 -300.000 -45.000 -30.000 -75.000 -8.000 -/}.000 FY 99 -27.000 -27.000 -22.000 -22.000 -8.000 -~.000 -!2§.000 -270.000 -395.000 YY00 -:0.000 -30.000 -50.000 -50.000 -!2.000 -!2.000 -!29.000 -~5.000 -208.000 -22.000 -285.000 -230.000 -t50.000 -30.000 -27.000 -i.iH6.000 -75.000 -!83.000 -30.000 -!2.000 -54.000 -66.000 -250.000 -22.D00 -~0.000 -270.000 m -622.000 3-24-95 ?O~AL EXPENDITURES ANNUAL CONTRIBU?ION TO RESERVE ESTIM. BALANCE. END OF YEAR -483.000 300.000 476.500 -732.DD0 300.000 44.500 -383.000 338.§00 -452.000 452.000 -92.000 300.000 208.000 -2.1{2.000 !.690.500 Exhibit VI ,~ENERAL FUND EXPENDITURES i995-96 DEPARTMENT DEPT t GENERAL GOVERNMENT: CITY CLERK 01 VISITORS CENTER 03 LEGISLATIVE 1I CITY ATTORNEY 12 CITY MANAGER 13 FOl? ~ENA¥ 1~ FINANCE 15 LAND ADMIN. 16 NON-DEPARTMENTAL 18 PLANNING & ZONING 19 TOTAL GENERAL GOVKRNMHNT PUBLIC SAFETY: POLICE 2I File 22 COMMUNICATIONS 23 ANIMAL CONTROL 29 TOTAL PUBLIC SAFETY PUBLIC WORKS: PUBLIC WORKS ADMIN. 31 SHOP 32 STREETS 33 BUIADINGS 3~ STREET LIGHTING 35 TOTAL PUBLIC WORKS LIBRARY & MUSEUM: LIBRAH~ 40 MUSEUM 41 TOTAL LIBtARY& MUSEUM PAHS & ~C~EA?ION: ~ECREATION 4S PARKS 46 BEAUTIFICATION 47 TOTAL PARKS & RECREATION EXPENDED i992-93 68,23I 78.123 133.134 221.2i~ 50,208 337 284.942 10.941 1.458.478 43,375 2.348.983 I,I26,459 987,339 345,299 100.403 2.559,500 218.850 360,898 358.908 97,728 57,I36 1.093,520 292,812 536 293.348 300.435 i54.587 31,582 486.604 E!PENDED '993-94 70.I06 i11.52! !12.098 !84.524 136 276.313 4.924 1.329.814 41.688 2.267.045 ~.176,546 1,578.613 ~64,979 !D6.047 3.226,185 238,295 374,251 512,264 183,334 58,826 !.366.970 288.970 0 '88.970 304.087 i61.048 38,635 503.770 OTHER 50 0 0 INCREASE ORIGINAL !2-31-94 12-31-94 MANAGER OVER BUDGET BUDGET ZIP & ENCUM RECORM. FY95 1994-95 1994-95 1994-95 1995-96 ORIGINAL S4.758 105.600 !35.185 188,670 125.752 O 307.254 7.300 634.906 52.545 i,641.970 !.330.479 !.445.041 451,815 121.031 3.348.366 294,832 450,218 418,736 197,460 62,000 1.423.246 ~31.095 0 331.095 349,433 163.070 43.308 555,811 375,000 ~5.633 107.417 I37.957 191,245 I29.980 0 307.995 7.458 640.094 52.832 i.660.611 1.357.257 1,456,525 454,216 121.378 3,389,376 298,682 471,693 436,060 198,394 66,095 1,470,924 356.567 0 356.567 356.820 i72,62i 43.842 573,283 348 ;904 44.020 97,007 99.181 102,157 70.961 0 144.334 2,370 249.141 23.172 832,343 654.524 868,109 221,I50 58,721 1.802.504 I33,845 255.007 309.877 99,794 28.926 727,449 204.535 0 204.535 !~4.3§6 100.817 23.753 278.926 % INCREASE 114.542 29.784 35.1% 107.650 2.050 1.9% 1!5.748 { I9,437) -14.4% ~12.468 23.798 12.6% 125.947 195 0.2% 0 0 306.053 ( 1.201) -0.4% 7.300 0 0.0% 665.082 30,176 4.8% 58.222 5.677 10.8% 1.713.012 71,042 4.3% i.329.723 {756) i.302.013 { 143,028) 440,207 {11,608) !19.943 3,191.886 { I56,480) 328,473 33,641 470.071 19,853 579.268 160.532 224.450 26.990 62,000 0 1,664.262 241.016 -0.1% -9.9% -2.6% -0.9% -4.7% 11.4% 4.4% 38.3% 13.7% 0.0% 16.9% 441.898 110,803 33.5% 0 0 441.898 110,803 33.5% 362.745 13,312 i52.970 (10,100) 39,672 (3,636) 555.387 ( 424) 375.000 0 TOTAL GZNERAL FUND 6,7.81,955 '.H52,940 ?.675.488 7.799.665 3.945.757 7.941.445 265.957 3.8% -6.2% -8.4% -0.1% 0.0% 3.5% Exhibit VI ~ CITY OF KENAI COLA INCH. .DATE % ?AY INCR. C~I YEAR CPI INCR. CPI INCR. CPI INCR. ¥~ ENDED YH ENDED ANNUAL DEC. DEC. AVERAGES ( U. $. } (WEST) (ANCHORAGE) 7-1-84 4.0 1983 3.8 4.2 1.~ 7-1-85 4.5 I984 4.0 4.5 4.1 7-1-86 0.0 1985 3.8 t.1 7-1-87 0.0 I986 1.1 1.4 1.9 7-1-88 t.0 1987 4.t 4.6 0.7 7-1-89 0.0 1988 4.4 4.0 0.7 7-1-90 ~I.0 1989 4.6 t,9 3.3 ?-I-91 6.0 1990 6.1 6,5 7-1-92 4.0 1991 3.1 3.0 7-1-93 0.0 1992 2.9 3.5 3.5 7-1-94 4.0 1993 2.7 2.7 2.9 7-1-95 (PROPOSED) 2.5 1994 2.7 2.3 2.3 12-¥R TOTALS 33. D 43.6 12-¥R AVE. 2.8 3.6 45.7 34.2 3.8 2.9 3-i3-95 NOTES: U.S. AND WEST DATA FROM BUREAU OF LABOR tTtTISTICS, C.P.I. FOR ALL URBAIt CONSUMERS. ANCHORAGE DATA THRU 1986 FROM KPB 1988 SITUATION AND PROSPECTS. AliCHORAGE DATA AFTER 1986 FROM B.L.S., ANCHORAGE DATA. , ( ......... '--i 9,7 .~ ~'--'-'~; INUTES, KENAI "-~ ~. TY COUNC I L MEET ING, '-MARCI-I('~I ..... - , ..o / Pa,ge 5 5 Alaska Public Utilities comm~ssxon - Mommsen Subcb~<'ision continued the rates or conditions of ~~~f-]5~Pub. 15c Utility operated by a municipality suc]'~ as the City of Kenai if t, hat utility is not in competition with any other public utilit>. F' OLD BUS1NESS F-1 Mommse~ S/D Mr. Glotfelty stared the AdministratSon is proceeding with the development pla~ and specifications ~der the intent of your resolutio~ last week. Mr. Kje]stad reported our contract is under consideration by the City ;lanaoer The fie~d ~urvey should begin next week. The general status is, we are a~ead of schedule. Councilman Doyle asked if this would be one project or be broken dow~ into smaller proS ects so local contractors can bid .on it. ' The City Manager reported this will be broken into three projects. 1. the transmission line 2 line beyond Mommsen, 3. well. ' F-2 F-3 Councilman ltornaday asked if there will be any problem having this done by September 1, 1973. Mr · ,,3e].stad reported it will be into Mommsen S/D by then and the remainder by freeze-up. Councilman Doyle asked how soon it will go to bid and Mr Kj elstad replied "May, he believes". ' The City Manager stated the contract has been he].d up for a conference with Galliette so there will be no duplication of engineering. Purch______d, nse new p_qlice car blr. Glotfelty reported a replacement for the police car would cost $3,675.7S. lfe have an insurance settlement of $3,350.00. The City 3lanager requests approval of an expenditure of $325.75 to purchase a 1972 Plymouth }:ur), for the police car. Norene moved and Doyle seconded to accept AdmJ. nistration's recommendation and expend $32S.75 on the replacement car. The motion carried unani~nously by roll call vote with Johnson abstaining. Recommendation - Kenai Arts Council The Clerk read the memo to Cor~ncil on his recommendation regardino Kcnai Arts Council request. He recommended the Old Public Safety Buildin~ tile surroundin~ o · ~' ~ ,'rounds be leased , 1. to thc Kenai Arts Cou]~cil for a two ),ear period at a rate of $1.00 per )'car. 2. The City providc for utilities and insurance UTES, KENAI 't.~TY COUNCIL ~IEETING, MARCI-I~_~, 1973 Page ---ecommendations- Kenai Arts Council continued. until they are able to financilly assume tl~is responsibility not to exceed a period of t~co years. 3. The Kcnai Arts Council will provide all improvements to the fa~].j:~y at no cost to ulu t,~ey abandon-'~'h-e' use of th{s'- -' f~ fi-~ i~-'~v better than when they entered. Marian Kempf asked for Cou::cils approval on this. She stated they have $.500.00 now and in 5lay are starting a fund raisino campaign. They are havi~g a sculpt, er come J.n who will bu±Id a large permanent sculpture. Johnson moved to accept the Administration's recommendation to negotiate ~,:ith the Kenai Arts Council, and donated $",~.00 for the two )'ear lease. It was seconded by Doyle. Unanimous conse~t was asked and gra~ted. F-4 Council. man ?.Ic Grady felt some monu~.nent should be ~nade' to the KenaJ Volunteer Fire Department because the building would not be there if it ~.;ern't for them. Inventory of fixtures in Recreatio:~ Trailer; Councilman ~ic Grady stated ~ir. Egan inquired as to an inventory on the physical fixtures in the trailer. Mc Grad), also noted they neglected to spruce up the area after removing the trailers. Mr. Egan will agree ~o this if the City will write him a letter. F-5 Mr. Glotfelty Stated we have an inventory of the fixtures just before they took it over. · Councilman Mc Grad), requested this inventory be included in the correspondance asking the area be policed. - Bush Lanes; Mr. Glotfelty reported the "Deed of Plat", Bush Lanes, dated 10-24-61 indicates each o~'ner in the subdivision is an owner in the Com~unity lfater System. The City is asking for Quitclaim Deeds or a Bill of Sale from each owner so we may legally provide them water. Mr. Quandt will personally take these around. F-6 Mr. Quandt stated we do not kno~, where we stand, h'e cannot get loans without an indication the City will provide water. We don't know if our fire rating will drop to a Class 5. Mr. Glotfelty stated every indication we have you will benefit from a Class 5 rating. The hydrants are designed for 500 gallons per mi..nute per fire plug. Inventory of all propertie, s owned b..y the City of Kenai' .., Counci!::~an Norene requested an inventory of all properties owned by the City of Kenai. lie wot~id like to see tl~e City get out of the real estate business. !.~IlqUTES, KENAI CITY COUNCIL, JULY 16, 1975 PAGE ? further stated that the lease did~not expire until 1978 for an annual rental rate of $500. Mr. Garnett asked if something similar could be arranged for the Legion as had been set up for another tenant in that a transfer of funds from one account to another had been accomplished. Moti_o_n passed by roll call vote.. Voting yes; Steiner, Thomas, Amba~ian' Doyle and Hudson and Morgan. Voting no; Elson. _. - MOTION: MOTION' Councilman Doyle moved, seconded by Councilman Thomas, for reconsideration of the Iease to the American Legion at the next regular meeting of the Council. unanimously approved. Leas? of city Owned Lands or. Facilities.- Fine Arts Cen..t..er As the City council had '~'e.c'ided in its budget hearings not to support any organizations outside the City organization, Administration asked for direction from Council in setting lease rates on leases of City owned lands and facilities such as in the case of the Fine Arts Center. The Fine Arts Center consists of 3,872 square feet and are presently paying $1 per year for their annual rental rate. The City pays for all utilities on the building. If the City were to receive fair market value on the Fine Arts Center, the annual rental rate would be $9,722. Councilman Morgan stated that this building was used by over a dozen organi- zations and one wing of the building was open to the public for recreation. Councilman Morgan further stated that he did not feel the City was tied to the rules and regulations concerning leases as set forth by the FAA on non-airport lands. Councilman Thomas stated that he had no adverse feelings against the groups that are using the building, however, Council must set a policy and show no favoritism to any groups or organizations utilizing City owned lands and facilities. Councilman Steiner moved, seconded by Councilman Thomas, that the piece of property on which the Fine Arts Center building is located, be put up for sale with a minimum acceptable bid of $95,123. Motion did not pass by roll call vote. Voting no; Doyle, Hudson, Morgan and Elson. Voting yes; Steiner, Thomas and Ambarian. Mayor Elson stated he felt as long as there was no demand for a particular piece of City owned property, the City should continue the lease basis as in the past. The Fine Arts group also advised the City that the're has never been a thermostat installed in the building and 'controling the heating in the building was very difficult. MOTION': G-9: ~qUTES, KENAI CITY COUNCIL,' JULY 16, 1975 PAGE 8 .~fOTION: Mrs. Jetta Brewer of the Fine Arts Center advised the Council the group would like to work with the Council but the Center cannot pay the annual rental rate as proposed. · Councilman Steiner moved, seconded by Councilman Thomas, to retain the present agreement between the Fine Arts Center and the City of Kenai but the building be offered for rent to any suitable prospective tenant at the annual rental rate of $9,722. .- Councilman Steiner moved to amend his motion, with approval of second, · to include at the City's expense a thermostat will be installed but that the Kenai Fine Arts Center will pay for the utilities and maintenance here- l! The amendment to the motion passed by roll call vote. Voting yes; Steiner. Thomas, Ambarian, Hudson and Elson. Voting no; Doyle and Morgan. ~he main motion as amended passed unanimously by roll call vote. A minimum bid of $6,000 was received from Mr. Miles Dean. Mr. Dean has put a deposit on the house and has been advised that he has ninety days in which to remove the structure from the premises and restore the grounds. Councilman Steiner moved, seconded by Councilman Ambarian, to accept the $6,000 bid on FAA House No. 104 from Mr. Miles Dean. Motion passed unanimously by roll call vote. Bid on FAA House No 103 "Across the Counter- Mrs. Joe Keeney has submitted a request to the City of Kenai to purchase FAA House No. 103 "Over the Counter,, at a price of $6,000. City Attorney Jan Williams recommended that Council authorize FAA House No. 103 to be offered up for auction rather than sold across the counter. City Council instructed Administration to proceed with the details necessary to auction FAA House No. 103 at the soonest possible convenient date. LEASE OF CITY LANDS t/THIS AGREEMENT, entered into this ~ day of ~~~~~, 1993, by and between the CITY OF KENAI, 210 Fi~ali:jo Avenue, Suite 200, Kenai, Alaska 99611-7794, a home-rule municipal corporation of Alaska, hereinafter called "City", and KENAI ARTS & HUMANITIES COUNCIL, P.O. Box 822, Kenai, Alaska, hereinafter called "Lessee". That the City, in consideration of the payments of the rents and performance of all the covenants herein contained by the Lessee, does hereby demise and lease to the Lessee the following described property' A portion of Lot 3, Block 17, Original Townsite of Kenai, located in the Kenai Recording District, Third Judicial District, State of Alaska, more specifically described as the building known as the Fine Arts Center, along with the grounds beneath such building and so much of those grounds immediately adjacent to such building as will provide ingress and egress to and from such building and access to all portions of the exterior of the building for purposes of repair and maintenance. A. ..pURPOSE: The purpose for which the Lease is issued is to provide the Kenai Arts & Humanities Council a building to house the Fine Arts Center for the benefit of the local community. B. TERM- The term of this Lease is for two years, commencing on the 1st day of July, 1993, to the 30th day of June, 1995. C. RENTAL PAYMENT' Rental for the above-described land shall be payable as follows- 1. The annual rental rate shall be one dollar 2. Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable in advance on or before the first day of July of each year. 3. In addition to the rents specified above, Lessee agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: Catv R. Graves %ttorney C.... OF KENAI 210 Ficlaigo/.~'~ ~ Kenai. A~aska 99611 283-3441 FAX 283-3014 Lessor: - Lessee Cary R. Graves City Attorney CITY OF KENAI 210 Fic]alcjo Kenai. Alaska 99611 283-3441 FAX 283-3014 (a) Taxes pertaining to the leasehold interest of the Lessee. (b) Sales tax now enforced or levied in the future computed upon rent payable in monthly installments whether rent is paid on a monthly or yearly basis. (c) Lessee agrees to pay all taxes and assessments levied in the future by the City of Kenai, as if Lessee was considered the legal owner of record of the leased property. (d) Interest at the rate of eight percent (8%) per annum and ten percent (10%) penalties of any amount of money owed under this Lease which is not paid on r before the date it becomes due. GENERAL COVENANTS: 1. USES- Except as provided herein, any regular use of lands or facilities without the written consent of the City is prohibited. This prohibition shall not apply to use of areas designated by the City for specified public uses, such as passenger terminals, automobile parking areas, and streets. 2. USES NOT CONTEMPLATED PROHIBITED: Use of the premises, other than as specifically set forth above, without the written consent of the City, is prohibited. 3. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not limited to, recording costs shall be paid by Lessee. 4. TREATMENT OF DEMISE: The Lessee agrees to keep the premises clean and in good order at its own expense, allowing no damage, waste, nor destruction thereof, nor removing any material therefrom, without written permission of the City. At the expiration of the term fixed, or any sooner determination of the Lease, the Lessee will peaceably and quietly quit and surrender the premises to the City. 5. PAYMENT OF RENT- Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building, Kenai, Alaska. 6. CONDITION OF PREMISES: The premises demised herein are improved and are leased on an "as is, where is" basis. / Lesse~ Catv R. Graves ,ttorney CI'I, OF KENAI 210 Fidalgo Kenai, Alaska 99611 283-3441 FAX 283-3014 (a) From the consequences of any violation of such laws, ordinances, and/or regulatiOns; and (b) From all claims for damages on account of injuries, death, or property damage resulting from such violation. (c) Lessee further agrees it will not permit any unlawful occupation, business, or trade to be conducted on said premises or any use to be made thereof contrary to any law, ordinance, or regulation as aforesaid with respect thereto, including zoning ordinances, rules and regulations. 18. CARE OF PREMISES: Lessee, at its own cost and expen~se shall keep the leased premises, all improvements which at any time during the term of this Lease may be situated thereon, and any and all appurtenances thereunto belonging, in good condition and repair during the entire term of this Lease. 19. LESSEE'S OBLIGATION TO R_EMOVE LIENS: Lessee will not permit any liens including, but not limited to, mechanics' laborers' or materialmen's liens obtainable or available under the then existing laws, to stand against the leased premises or improvements for any labor or material furnished to Lessee or claimed to have been furnished to Lessee or to the Lessee's agents, contractors, or sublessees, in connection with work of any character performed or claimed to have been performed on said premises or improvements by or at the direction or sufferance of Lessee, provided, however, Lessee shall have the right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien. On final determination of such lien or such claim for lien, Lessee will immediately pay any judgement rendered with all proper costs and charges and shall have such lien released or judgement satisfied at Lessee's own expense. 2 0. NOTICES: (a) Any notices required by this Lease shall be in writing and shall be deemed to be duly given only if delivered personally or mailed by certified or registered mail in a prepaid envelope addressed to the parties at the address set forth in the opening paragraph of this lease unless such address has been changed pursuant to sub-paragraph (b) hereafter, and in that case shall to the most recent address so changed. Any notice so mailed shall be deemed delivered on the date it is deposited in a U.S. general or branch post office. Lessor: Lessee' BREAKEVEN ANALYSIS Activity Description m~step Training Classes Public User Fee 3.50 Classes Cost of New Per Week Equip. Needed 2 $0.00 Estimated Instructors Weekly Monthly Hrly. Rate Payroll Hrs. Payroll 35.00 3 504.84 (a) (b) User's Per Class 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Monthly Revenue 420.00 448.00 476.00 504.00 532.OO 56O.OO 588.00 616.00 644.00 672.00 7O0.OO 728.00 756.00 784.00 812.00 840.00 868.00 896.00 924.00 952.0O 980.00 1,008.00 1 ,O36.OO 1 ,O64.OO 1,092.00 1,120.00 1,148.00 1,176.00 1,2O4.OO 1,232.00 1,26O.OO 1,288.OO 1,316.00 Gross Profit -84.84 -56.84 -28.84 -0.84 27.16 55.16 83.16 111.16 139.16 167.16 195.16 223.16 251.16 279.16 307.16 335.16 363.16 391.16 419.16 447.16 475.16 503.16 531.16 559.16 587.16 615.16 643.16 671.16 699.16 727.16 755.16 783.16 811.16 Gross Months To % ROI Breakeven Pt. -16.81% N/A -11.26% N/A -5.71% N/A -0.17% N/A 5.38% N/A 10.93% N/A 16.47% N/A 22.02% N/A 27.57% N/A 33.11% N/A 38.66% N/A 44.20% N/A 49.75% N/A 55.30% N/A 60.84% N/A 66.39% N/A 71.94% N/A 77.48% N/A 83.03% N/A 88.57% N/A 94.12% N/A 99.67% N/A 105.21% N/A 110.76% N/A 116.31% N/A 121.85% N/A 127.40% N/A 132.95% N/A 138.49% N/A 144.04% N/A 149.58% N/A 155.13% N/A 160.68% N/A NOTES (a) Rate agreed to by City Council for two classes per week. (b) Projection based on instructor working as a city .employee. BREAKEVEN ANALYSIS Activity Description [Step Training Classes Public Classes Cost of New User Fee Per Week Equip. Needed 3.50 2 $0.00 Estimated Instructors Weekly Monthly Hrly. Rate Payroll Hrs. Payroll 35.00 2 280.00 (a) (b) User's Per Monthly Class Revenue 15 420.00 I 6 448.00 17 476.00 1 8 504.00 1 9 532.00 20 560.00 21 588.00 22 616.00 23 644.00 24 672.00 25 700.00 26 728.00 27 756.00 28 784.00 29 812.00 30 840.00 31 868.00 32 896.00 33 924.00 34 952.00 35 980.00 36 1,008.00 37 1,036.00 38 1 ,O64.00 39 1,092.00 40 1,120.00 41 1,148.00 42 1,176.00 43 1,204.00 44 1,232.00 45 1,260.00 46 1,288.00 47 1,316.00 Gross Profit o 140.00 168.00 196.00 224.00 252.OO 280.OO 3O8.OO 336.OO 364.00 392.OO 420.OO 448.O0 476.O0 504.00 532.OO 560.00 588.00 616.00 '644.00 672.00 700.00 728.00 756.00 784.0O 812.00 84O.OO 868.00 896.00 924.00 952.OO 98O.OO 1,008.00 1 ,O36.OO Gross Months To % ROI Breakeven Pt. 50.00% N/A 60.00% N/A 70.00% N/A 80.00% N/A 90.00% N/A 100.00% N/A 110.00% N/A 120.00% N/A 130.00% N/A 140.00% N/A 150.00% N/A 160.00% N/A 170.00% N/A 180.00% N/A 190.00% N/A 200.00% N/A 210.00% N/A 220.00% N/A 230.00% N/A 240.00% N/A 250.00% N/A 260.00% N/A 270.00% N/A 280.00% N/A 290.00% N/A 300.00% N/A 310.00% N/A 320.00% N/A 330.00% N/A 340.00% N/A 350.00% N/A 360.00% N/A 370.00% N/A NOTES (a)- Rate agreed to by City Council for two classes per week. (b) Projection based on instructor working as an independant contractor, BREAKEVEN ANALYSIS Activity Description ISmall Group Fit. Training Public User Fee 7.50 · Classes Cost of New Instructors Weekly PerWeek Equip. Needed Hrly. Rate Payroll Hrs. 4 $0.00 15.00 6 (a) Estimated Monthly Payroll 432.72 (b) (c) User's Per Monthly Gross Class Revenue Profit 4 480.00 47.28 5 600.00 167.28 6 720.00 287.28 Gross % ROI 9.85% 27.88% 39.90% (d) Months To Breakeven Pt. N/A N/A N/A NOTES (a) Based on assumption that circuit training equipment purchase recomendation was approved. (b) Payroll calculations include monthly earnings, FICA & Medicare costs, unemployment insurance, and misc. benefits paid by employer. (c) Gross profit equals the total monthly revenue received from this activity less payroll costs. BREAKEVEN ANALYSIS Activity Description [Personal Training Desired Instructors Required Profit Margin Hrly. Rate User Fee 25% 15.00 34.03 Sessions Gross Mthly Per Week Revenue 1 136.12 2 272.24 3 4O8.36 4 544.48 5 680.60 6 816.72 7 952.84 8 1,088.96 , 9 1,225.08 1 0 1,361.20 1 I 1,497.32 1 2 1,633.44 13 1,769.56 1 4 1,9O5.68 15 2,041.80 1 6 2,1 77.92 1 7 2,314.04 1 8 2,45O. 16 1 9 2,586.28 2O 2,722.40 21 2,858.52 22 2,994.64 23 3,130.76 24 3,266.88 25 3,4O3.OO 26 3,539.12 27 3,675.24 28 3,811.36 29 3,947.48 3O 4,O83.6O .,~ 31 4,219.72 32 4,355.84 33 4,491.96 Weekly Payroll Hrs 1.50 3.00 4.50 6.00 o 7.50 9.00 10.50 12.00 13.50 15.00 16.50 18.00 19.50 21.00 22.50 24.00 25.50 27.00 28.50 30.00 31.50 33.00 34.50 ' 36.00 37.50 39.00 40.50 42.00 43.50 45.00 46.50 48.00 49.50 M th ly FICA & Wages Medicare 90.00 6.89 180.00 13.77 270.00 20.66 360.00 27.54 450.00 34.43 540.00 41.31 630.00 48.20 720.00 55.08 810.00 61.97 900.00 68.85 990.00 75.74 1,080.00 82.62 1,170.00 89.51 1,260.00 96.39 1,350.00 103.28 1,440.00 110.16 1,530.00 117.05 1,620.00 123.93 1,710.00 130.82 1,800.00 137.70 1,890.00 144.59 1,980.00 151.47 2,070.00 158.36 2,160.00 165.24 2,250.00 172.13 2,340.00 179.01 2,430.00 185.90 2,520.00 192.78 2,610.00 199.67 2,700.00 206.55 2,790.00 213.44 2,880.00 220.32 2,970.00 227.21 SUI 4.50 9.00 13.50 18.00 22.50 27.00 31.50 36.00 40.50 45.00 49.50 54.00 58.50 63.00 67.50 72.00 76.50 81.00 85.50 90.00 94.50 99.00 103.50 108.00 112.50 117.00 121.50 126.00 130.50 135.00 139.50 144.00 148.50 Workman's Comp. Ins. 6.75 13.50 20.25 27.00 33.75 40.50 47.25 54.00 60.75 67.50 74.25 81.00 87.75 94.50 101.25 108.00 114.75 121.50 128.25 135.00 141.75 148.50 155.25 162.00 168.75 175.50 182.25 189.00 195.75 202.50 209.25 216.00 222.75 Net Mthly Revenue 27.98 55.97 83.95 111.94 139.92 167.91 195.89 223.88 251.86 279.85 307.83 335.82 363.80 391.79 419.77 447.76 475.74 503.73 531.71 559.70 587.68 615.67 643.65 671.64 699.62 727.61 755.59 783.58 811.56 839.55 867.53 895.52 923.50 BREAKEVEN ANALYSIS Activity Description ICircuit Training Classes Public User Fee 3.5O Classes Cost of New Per Week Equip. Needed 6 $12,365.00 (a) Instructors Weekly Hrly. Rate Payroll Hrs. 15.00 9 Estimated Monthly Payroll 649.O8 (b) User's Per Monthly Class Revenue 1 0 840.O0 1 1 924.00 1 2 1 ,OO8.O0 13 1,092.00 14 1,176.00 1 5 1,26O.OO 1 6 1,344.OO 1 7 1,428.00 1 8 1,512.OO 1 9 1,596.0O 20 1,680.00 21 1,764.OO 22 1,848.OO 23 1,932.00 24 2,016.00 25 2,100.00 26 2,184.00 27 2,268.00 28 2,352.0O 29 2,436.OO 30 2,520.0O 31 2,6O4.OO 32 2,688.00 33 2,772.00 34 2,856.O0 35 2,94O.O0 36 3,O24.OO 37 3,108.00 38 3,192.00 39 3,276.OO 40 3,360.00 41 3,444.00 42 3,528.00 (c) Gross Profit - 1 90.92 274.92 358.92 442.92 526.92 610.92 694.92 778.92 862.92 946.92 1,030.92 1,114.92 1,198.92 1,282.92 1,366.92 1,450.92 1,534.92 1,618.92 1,702.92 .1,786.92 1,870.92 1,954.92 2,038.92 2,122.92 2,206.92 2,290.92 2,374.92 2,458.92 2,542.92 2,626.92 2,710.92 2,794.92 2,878.92 (d) Gross Months To % ROI Breakeven Pt. 1.54% 65 2.22% 45 2.9O% 34 3.58% 28 4.26% 23 4.94% 20 5.62% I 8 6.3O% I 6 6.98% 1 4 7.66% 13 8.34 % 1 2 9.02% 1 1 9.7O% 1 0 10.38% 1 0 11.05% 9 11.73% 9 12.41% 8 13.09% 8 13.77% 7 14.45% 7 15.13% 7 15.81% 6 16.49% 6 17.17% 6 17.85% 6 18.53% 5 19.21% 5 19.89% 5 20.57% 5 21.24% 5 21.92% 5 22.60% 4 23.28% 4 NOTES (a) Leg Press, Peck Deck, Squat Machine, Leg Curl, Hyperextension, Lat Pull- down, Additional Benches, Exercise- tubing. (b) Payroll calculations include monthly earnings, FICA & Medicare costs, unemployment insurance, and misc. benefits paid by employer. (c) Gross profit equals the total monthly revenue received from this activity less payroll costs. (d) Months to Breakeven Point is defined as the number of months required to sustain the projected income in order to recover the initial cost of equipment. BREAKEVEN ANALYSIS Activity Description [Circuit Training Classes Public User Fee 3.50 Classes Cost of New Instructors Weekly PerWeek Equip. Needed Hrly. Rate Payroll Hrs. 6 $16,865.00 15.00 9 (a) Estimated Monthly Payroll 649.08 (b) User's Per Monthly Class Revenue 1 0 840.00 1 I 924.00 12 1,008.00 13 1,092.00 14 1,176.00 1 5 1,260.00 1 6 1,344.00 17 1,428.00 1 8 1,51 2.00 1 9 1,596.00 20 1,680.00 21 1,764.00 22 1,848.00 23 1,932.00 24 2,016.00 25 2,100.00 26 2,184.00 27 2,268.00 28 2,352.OO 29 2,436.00 30 2,52O.0O 31 2,6O4.OO 32 2,688.00 33 2,772.OO 34 2,856.00 35 2,94O.OO 36 3,O24.OO 37 3,108.00 38 3,192.00 39 3,276.OO 40 3,36O.OO 41 3,444.OO 42 3,528.OO (c) Gross Profit ' 1 90.92 274.92 358.92 442.92 526.92 610.92 694.92 778.92 862.92 946.92 1,030.92 1,114.92 1,198.92 1,282.92 1,366.92 1,450.92 1,534.92 1,618.92 1,702.92 .1,786.92 1,870.92 1,954.92 2,O38.92 2,122.92 2,206.92 2,29O.92 2,374.92 2,458.92 2,542.92 2,626.92 2,710.92 2,794.92 2,878.92 (d) Gross Months To % ROI Breakeven Pt. 1.13% 88 1.63% 61 2.13% 47 2.63% 38 3.12% 32 3.62% 28 4.12% 24 4.62% 22 5.12% 2O 5.61% 18 6.11% 16 6.61% 15 7.11% 14 7.61% 13 8.11% 12 8.60% 1 2 9.10% 1 1 9.60% 1 0 10.10% 1 0 10.60% 9 1'1 .O9% 9 11.59% 9 12.09% 8 12.59% 8 13.09% 8 13.58% 7 14.08% 7 14.58% 7 15.08% 7 15.58% 6 16.07% 6 16.57% 6 17.07% 6 NOTES (a) Leg Press, Peck Deck, Squat Machine, Leg Curl, Hyperextension, Lat Pull- down, Additional Benches, Gravitron, Exercise Tubing. (b) Payroll calculations include monthly earnings, FICA & Medicare costs, unemployment insurance, and misc. benefits paid by employer. (c) Gross profit equals the total monthly revenue received from this activity less payroll costs. (d) Months to Breakeven Point is defined as the number of months required to sustain the projected income in order to recover the initial cost of equipment. BREAKEVEN ANALYSIS NOTES Exercise Equipment Center Anchorage, Alaska Manager Richard Tilton Fax: 274-4971 Phone: 272-4700 Spri Products, Inc. 1554 Barclay Blvd. Buffalo Grove, IL. 60089 Fax: (708) 537-4941 Phone: (800) 222-7774 ITEM ,,, COST ITEM Leg Press Pec Deck w/Weights 1,100.00 2,200.00 Rubber Latex Tubing w/Foam Handles 120.00 Pec Deck No Weights 800.00 Smith Machine 3,300.00 Leg. Curl 2,500.00 Hyperextension 200.00 ;t Machine 1,900.00 Flat Bench 120.00 Adj. Bench 200.00 Bench w/Uprights 245.OO Gravitron (Copy) 4,500.00 The Visitor Industry is the FASTEST growing industry in the State of Alaska and the Nation. The Visitor Industry is the Second largest private sector employer in Alaska .... second only to the fishing industry and second only to grocery stores and supermarkets nation wide. The benefits of Visitors to the City of Kenai are' Employment Income - private sector Visibility Diversified Economic Base Tax Revenues - City Cultural Benefits The Visitor Industry is expected to be the world's leading,industry by the year 2000. The Visitor Industry is fast growing and recession resistant. Statistics show that for every dollar we spend in the Visitor Industry we generate an additional $3.65 elsewhere in the economy,.., KENA I GROWTH Increase in Meeting and Conventions. Over 20 Booked between January 1994 and July 1995 for an estimated economic impact to the City of Kenai of $1,553.952 Increased private industry growth, i.e. Tour Companies, Retail Stores, etc. Bed & Breakfasts, RV Parks, Gift Shops, Increased visitors to the City of Kenai from 1992-1994 went from 15,000 to over 56,000. Increased membership at the Visitor Center of over 35 % since January. 1995. Increased inquiries for information about Kenai are up 40 %. Increased interest in the Visitor Center by local residents and corporations. Growth of the new Kenai Cultural Council- a sub board to the KVCB Board of Diroctors. This Council will handle the Exhibit & Display area only. $25 000 Visitor Industr_ In ves tm e n t Approximately $5,000 - $8,000 would be used for research and development. We as a City and an Industry need to identify what image will give us the greatest impact on our market. The remaining funds will be used for the printed collateral materials and equipment to handle it as well as distribution. CONVENTION SALES EXAMPLE One avenue for tourism growth for Kenai would be the further development of its convention & meetings market. Tourism organizations around Alaska and the world invest heavily in convention promotion because it pays big dividends. According to the International Association of Convention and Visitors Bureau, the economic impact of a single delegate day is estimated at $140.00 per day. This means a million dollars in additional economic impact can be seen with only 7,142 delegate days. Other Alaskan towns like Sitka, Valdez and Nome, which do not have some of the same advantages as Kenai, are seeing convention spending of $266,000 to $500,000 annually. The City of Kenai has similar or larger potentials if we market well. Seven thousand delegate days and the million dollars they could potentially bring may seem out of reach. However, when the task is broken down to its component parts, it becomes a more understandable and attainable goal. For example, if we assume the average meeting or convention lasts three days and we further assume that the average convention has a hundred delegates, the City of Kenai could reach a goal of $1 Million dollars of convention sales with only 24 conferences. Fox Report 1994 I VEN April 24, 1995 Kenai Fine Azts Center BID Included in the bid price is the following- Installation of 4x8 P.T lumber on parapet, installed with 7" quick l::~lts 2' on conter. Ir~tallation of trusses, plus roof sheetin~ of 1/2" CDX. ~ Installation of metal on said roof sheetin~ with all trim, .siding on all .gables with facia and varge rafters (no soffit' or paint). Tw0T~L LI/~P ,~~ BID ....................... $ 3 7,5 6 6 . 0 0 *Addit~Note · Ail mechan~.~=~l roof vents, furnace, kiln, plumbin$, and ~moving of said plumbing will be at time and materials rate. 'Steve Cropsey Accepted by . , ,; ~ Kenai Fine Arts Rep. RAVEN CONTRACTORS, INC. P.O. Box 490 KEN^I, ALASKA 99611 907-283-2052 F~ 907-283-5081 ,I/b ",..I · o