HomeMy WebLinkAboutORDINANCE 1825-1999City of Kenai
Suggested by: Administration
ORDINANCE N0. 1825-99
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY X737,000 FOR THE
CONSTRUCTION OF AMULTI-PURPOSE FACILITY.
WHEREAS, the City of Kenai desires to construct aMulti-Purpose Facility; and
WHEREAS, Ordinances 1807-98 and 1821-99 appropriated funds for design and site
work; and
WHEREAS, funding for the prof ect will come from the General Fund fund balance.
NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that estimated revenues and appropriations be increased as follows:
General Fund
Increase Estimated Revenues:
Appropriation of Fund Balance X737,000
Increase Appropriations:
Non-Departmental -Transfer to Capital Project Fund X737,000
Multi-Purpose Facility Capital Project Fund
Increase Estimated Revenues:
Transfer from General Fund 737 000
Increase Appropriations:
Administration 2,000
Engineering 35,000
Construction 700,000
737 000
PASSED BY THE COUNCIL OF THE CITY OF
1999. /
ATTEST:
Approved by Finance:
Introduced:
Adopted:
Effective:
Apri121, 1999
May 5, 1999
May 5, 1999
of May,
Carol L. Freas, City Clerk
CITY OF KENAI
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210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014 ~
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Memorandum
Date: Apri129,1999
To: Mayor and City Council
From: Richard A. Ross, City Manager
RE: Ordinance 1825-99
As you are aware the bids received for the construction phase of the multi-purpose
facility exceeded the funds available for the project. Based on sales of BOR released
lands, the tax base created and interest received on the notes, the Administration had
recommended funding up to $750,000 on the facility construction phase of the project.
This would have kept total project cost with site work under $1 million. The low bid on
the construction phase of the project came in at $1,012,000. This is well above estimate
and our expectations. This could put total prof ect cost, including site work, between $1.3
to $1.4 million, depending on additional cost of inspection and HEA.
Recommendation
It is the recommendation of the Administration that Council defeat Ordinance 1825-99.
Unless Council directs otherwise, the Administration will not be submitting a substitute
ordinance to fund the project with general fund monies above the $750,000 level.
If Council accepts this recommendation, it is suggested that the future of the project
could proceed along the following course:
The plans developed for this project are good plans that are amenable for future
expansion. we do not recommend reducing the scope of the project to a level that
would result in an unsatisfactory project.
• The City continue its commitment to fund the project at approximately the $750,000
level in the future, based on the agreements reached when BOR lands were released
Memorandum to Council
April 29,1999
Page 2 of 2
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for sale as a source of funds for the project. The Borough also transferred lands to the
City in support of the project.
• The City work with user groups to find non-municipal funding sources to supplement
the existing funds to do the project.
• In anticipation of future development the City proceed with the site work portion of
the project. The joint site work bids received for the Challenger Learning Center, as
well as this project, were lower than projected. To not do this portion of the project
would further escalate costs in the future.