HomeMy WebLinkAboutOrdinance No. 3030-2018_____________________________________________________________________________________
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Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3030-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATE REVENUES AND APPROPRIATIONS IN THE MUNICIPAL ROADWAY
IMPROVEMENT CAPITAL PROJECT FUND BY THE PROCEED AMOUNT FROM THE SALE
OF TRACT A, DRAGSETH SUBDIVISION 2016 ADDITION, ACCORDING TO THE OFFICIAL
PLAT THEREOF, UNDER PLAT NO. 2016-22, FILED IN THE KENAI RECORDING DISTRICT,
THIRD JUDICIAL DISTRICT, STATE OF ALASKA, INCLUDING ALL IMPROVEMENTS
THEREON AS PREVIOUSLY APPROVED IN ORDINANCE 2957-2017 (SUBSTITUTE).
WHEREAS, Ordinance 2957-2017 authorized the sale of City-owned lands described as Tract A,
Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016-
22, filed in the Kenai Recording District, Third Judicial District, State of Alaska, including all
improvements thereon; and,
WHEREAS, the City acquired said property utilizing grant fund from the State of Alaska
Department of Commerce, Community and Economic Development (DCCED); and,
WHEREAS, utilization of grant funds for the purchase of said property required the City to
reimburse the granting agency the amount of any proceeds from the sale of such property at
which time the proceeds would become available to the City to once again expend in accordance
with the original grant agreement; and,
WHEREAS, total proceeds paid to the City by the buyer, include interest on a short-term note
from the date of sale to February 2017 were $838,899.89; and,
WHEREAS, total expenses of the sale, including closing costs and real estate commissions were
27,641.25; and,
WHEREAS, re-appropriation of the proceeds from sale will allow the City to expend the funds
under the conditions of the DCCED Grant and is in the best interest of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That the estimated revenues and appropriations in the General Land Sale
Permanent Fund be increased as follows:
Municipal Roadway Improvement Capital Project Fund:
Increase Estimated Revenues –
State Grant $838,899.89
Increase Appropriations –
Construction $838,899.89
Ordinance No. 3030-2018
Page 2 of 2
Section 2. Severability: That if any part or provision of this ordinance or application thereof to
any person or c ircumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision , or application directly involved
in all controversy in which this judgment shall have been rendered , and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or c ircumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 3. Effective Date: That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect
upon adoption .
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20 day of June, 2018 .
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Introduced: June 6 , 2018
Enacted: June 20, 2018
Effective: June 20, 2018
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: May 30, 2018
SUBJECT: Ordinance 3030-2018
____________________________________________________________________________
The purpose of this memo is to recommend adoption of Ordinance 3030-2018 which will
appropriate the proceed from the sale of City-owned land described as Tract A, Dragseth
Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016-22, filed in
the Kenai Recording District, Third Judicial District, State of Alaska, including all improvements
thereon.
The City purchased the property for construction of a new south beach access road utilizing grant
fund from the State of Alaska Department of Commerce, Community and Economic Development
(DCCED). Utilization of grant funds for the purchase of said property required the City to
reimburse the granting agency the amount of any proceeds from the sale of such property at
which time the proceeds would become available to the City to once again expend in accordance
with the original grant agreement.
Proceeds from the sale were $838,899.89 and reappropriation of the proceeds from sale will allow
the City to expend the funds under the conditions of the DCCED Grant and is in the best interest
of the City. You support for Ordinance 3030-2018 is respectfully requested.