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HomeMy WebLinkAboutOrdinance No. 3032-2018_____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3032-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUE AND APPROPRIATIONS IN THE WATER & SEWER FUND FOR UTILITY COSTS IN EXCESS OF BUDGETED AMOUNTS. WHEREAS, the Public Works Department (Department) requests increasing the estimated revenue and appropriations in the Water & Sewer Fund for Utility costs at the Waste Water Treatment Plant (WWTP) in excess of the budgeted amounts; and, WHEREAS, changes to the daily operations at the plant to comply with ADEC requirements and to achieve regulatory compliance have resulted in increases to the use of utilities; and, WHEREAS, this past winters temperatures have required an extended heating season resulting in an increase to the use of utilities; and, WHEREAS, overall expenditures of the Water & Sewer Fund will be increased by an estimated $80,000 in FY2018 as a result of the proposed change. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the estimated revenues and appropriations be increased as follows: Water & Sewer Fund: Increase Estimated Revenues – Appropriation of Fund Balance $80,000 Increase Appropriations: Wastewater Treatment Plant - Utilities $80,000 Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances 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 circumstances. 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 1.15.070(f), this ordinance shall take effect upon adoption. Ordinance No . 3032-2018 Page 2 of 2 ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 201h day of June, 2018. BRIAN GABRIEL SR., MAYOR New T ext Un derlin ed ; [D E LETE D TEXT BRACKETED] 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: Scott Curtin, Public Works Director DATE: May 30, 2018 SUBJECT: Ordinance No. 3032-2018 ______________________________________________________________________ The purpose of this memo is to request an increase to the estimated revenue and appropriations in the Water and Sewer Fund for the Waste Water Treatment Plant (WWTP) in the amount of $80,000.00 in excess of the originally budgeted amounts to cover additional utility costs. The facility has been required to adapt our operations to comply with current regulations for allowable discharges. The most challenging has been the difficulty with removal of ammonia, which the plant was not originally designed to do. To effectively manage the levels of ammonia requires an increase in demand for the air blowers, which in turn uses a lot of electricity. As regulations have continued to increase, and the plant has remained relatively unchanged, this is really the only way we can meet our discharge requirements without incurring the costs of a large renovation project. Staff has been able to achieve an operational balance with providing sufficient air, while maintaining enough residency time within our digester to allow the micro- organisms to perform their jobs. This is challenging, however, in an environment with drastically changing temperatures. Additional factors contributing to the added costs are related to the relatively cold winter this past season, as well as the aging heating equipment for the facility. An upcoming project to replace the blowers with new units running on variable frequency drives (VFDs) will help offset some of the future costs, but not all. It should also be known these additional utility demands may impact the FY19 Budget, as current operations will continue for the immediate future. Thank you for your consideration.