HomeMy WebLinkAboutResolution No. 2017-71CITY OF KENAI
RESOLUTION NO. 2017-71
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A
BUDGET TRANSFER WITHIN THE GENERAL FUND — STREETS DEPARTMENT FOR RENT
OF WAREHOUSE SPACE IN LIEU OF ADDING SALT TO ROAD SAND FOR WINTER ICE
CONTROL.
WHEREAS, the cost of renting the warehouse is less than the cost of purchasing salt; and,
WHEREAS, the use of salt on the roads results in accelerated corrosion of public and City vehicles
and equipment; and,
WHEREAS, an analysis of the fair market value for rented warehouse space was performed.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the following budget transfer be made:
General Fund — Streets Department
From:
Operating Supplies ULM
To:
Rentals $
Section 2. That pursuant to KMC 1.15.080(b) this Resolution shall take effect upon
enactment.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 611 day of December, 2017.
13RIAN GABRIEL SR., MAYOR
ATTEST:
Heinz, City Clerk
Approved by Finance:
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Telephone: (907) 283-7535 1 Fax: (907) 283-3014
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MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager ?.0'
FROM: Sean Wedemeyer, Public Works Director/Capital Projects Manager -5141 ✓
DATE: November 16, 2017
SUBJECT: Resolution authorizing a budget transfer for rent in lieu of salt
The purpose of this memo is to provide information supporting the resolution authorizing a budget
transfer within the general fund — streets department for rent of warehouse space in lieu of adding
salt to road sand for winter ice control.
Historically the Streets has placed sand in the warm storage building at 332 Airport Way as
opposed to mixing salt in the sand for winter ice control on the streets. During the design of the
new warm storage building the City Manager directed me to remove the bay intended for sand
storage from the design. He directed me to plan to store the sand outside and mix it with salt.
The Streets Department proceeded with purchasing salt and mixing it with the sand intended for
use on the streets.
Storing the sand outside has resulted in costs, challenges, and complications. $29,250 was
budgeted in the current fiscal year for salt. The salt should be stored out of the elements utilizing
covered storage until mixed with the sand using labor, fuel and equipment. The sand pile once
mixed with salt, shall be kept covered with tarps lest the salt leach out during precipitation.
Despite diligent mixing and covering, some sand freezes regardless, making it unusable and
difficult to manage. One of the more concerning complications was brought to our attention by
the Shop foreman. The City mechanics have witnessed significant acceleration in corrosion to
City equipment after we implemented using salt.
The City Manager determined a fair market value of utilizing the warehouse space and it is less
than half of the amount budgeted for sand.
Thank you for your consideration.