HomeMy WebLinkAboutORDINANCE 1836-19991
Suggested by: Administration
City of Kenai
ORDINANCE N0. 1836-99
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA
INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY X426,750 IN
THE MULTI-PURPOSE FACILITY CAPITAL PROJECT FUND.
WHEREAS, bids for this project were higher than expected and an additional
X426,750 needs to be appropriated; and
WHEREAS, Phase 1, LLC has agreed to provide X275,000 toward the
construction of the facility; and
WHEREAS, the additional ~ 151,750 needed to fund the project is available in
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 151,750
Increase Appropriations:
Non-Departmental -Transfer to
Capital Project Fund 151 750
Multi-Purpose Facility Capital Project Fund
~ r ~,.-
Increase Estimated Revenues:
Miscellaneous Revenue X275,000
Transfer from General Fund 151,750
426 750
Increase Appropriations:
Construction 426 750
Ordinance No. 1836-99
Page Two
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of
July, 19.99.
H. RAY ND MEASLES, ICE MAYOR
ATTEST:
. °~,i~
Carol L. Freas, ity Clerk
Introduced: July 21, 1999
.Adopted: July 21, 1999
Effective: July 21, 1999
Approved by Finance:
(7/ 15/99) kl
CITY OF KENAI
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MEMORANDUM
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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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1992
T0: Kenai City Council
FROM: Larry Semmens, Acting City Manager,~~
DATE: July 16,1999
SUBJECT: Multipurpose Facility Status
This memo is to outline the status of the Multipurpose Facility Project.
1. The draft Concession and Management/Operation Agreement with Phase I, LLC
(LLC} is included in this packet for your review.
2. The bank has approved a loan to Phase 1, LLC contingent upon assignment of
the Concession and Management/Operation Agreement and the completed
formation of the LLC.
3. The contractor, G & S Construction (G & S), agrees to guarantee their bid price
for longer than the 60 days stipulated in their bid. However, the completion date
of the project is moved out one month to December 1,1999. This completion
date is contingent upon the building package being ordered on Thursday, July
22,1999.
4. Modifications to the structure have been made resulting in a cost reduction of
$35,250.00.
5. Due to the one month delay in the completion date, the LLC will not receive
revenue that was anticipated. They have proposed that the parties share equally
in the anticipated revenue loss of $10,000. For every day past November 1,
1999, the City and G & S would each pay $110. After December 1, G & S would
pay the City $500/day under the liquidated damages clause of the construction
contract.
The City Council needs to be aware that there is a possibility that Phase 1, LLC will not
actually have the bank loan in hand by July 22,1999. If the City signed a contract with
G & S to build prior to having access to the loan proceeds, there is a risk that the LLC
will not get the loan and the City will be obligated to G & S for the full contract amount.
Time is the rub in this situation. If we wait until the loan proceeds are guaranteed to be
available to the City, the project will likely be delayed, possibly for a year.
National
Banlt°fAlasl~a
July ,15,1999
Phase I, LLC
125 N Willow St.
Kenai AK 99611
Rick Baldwin
RE: Multi Purpose Facility Financing
Dear Rick,
Kenai Branch
P.O. Box 1969
Kenai, AK 99611-1969
Phone (907) 283-7581
Fax (907) 283-4082
I am pleased to inform Phase I, LLC. National Bank of Alaska has approved
your loan request of $350,000 for the Multi-Purpose Facility.
The request is approved conditioned on the following:
The Bank receives the signed and enforced concessionlmanagement
agreement between Phase I, LLC and the City of Kenai. The agreement must
be assigned to the bank as security for the loan and acknowledged by both
parties.
Phase I, LLC is established as a for profit entity under current State laws
and signs a note with the bank with the 12 members listed on the agreement as
guarantors.
The terms of the loan are $350,000 at NBA Prime +2% (currently 10%) for 24
months. The loan will convert to a 10 year term at the same interest rate at the
end of the 24 month period. The bank will charge a one time $2,500.00 loan
origination fee,
If there are any questions regarding the loan I can be contacted at the Kenai
Branch 907-283-7581.
Sincerely,
Bond Stewart
Vice President
This agreement catered into as of the 2l°~ da of Jul ,1999 betr~een the Cit of
Y Y ~ Y
Kenai, ("Clay"), CAS Constivrtion Company ("G&S"} and Phase ~ LLC ("Phase I»}.
Recital. The City inxends to. enter .into a contract with Cr&S for the construction. of the
Kenai Multipurpose Fem. Pba~se I and the City have entered into a concession
agtent for the operation ofthe ice r~ at the ma~tti se facili which rovides for
P~ fiY p
Phase I to assist in the .funding of the f~ccility and ~a return to receive the income £rom the
ice rinir concession. The ' 'ty may,not be com letad within the time on ' aU
p ~ y
projected by Phase I ~n calculatwg its pro forma revenues from the concession. The
panties have .agreed to equally bear the cask that the facili will not be co leted b the
.. tY mP Y
an~c~pated November 1 completion date.
Therefore the .parties agree as follows:
1. .The City aid GB~S will each a to Phase Y tb,e sum of $110 r da be . .
P Y Pe Y g
on November 1,1999 and continuing wztil the date the facility is substantinll com leted
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and possession thereof ~s delwered by G&S to the Cary.
2. Phase I:will ea~ecute the Concession Bement referred to above ' '
~ auad diligently aCt to
complete all necessary acts rewired by the National Bank of Alaska as a condition of
? mnlang the load funds available as set forth in the comma
tment letter dated July 16,
1999,
3. This agreement is in addition to and does not amend or n~o ' an other
. daft' y agreement
e~ered tnto between or among all or-some ofthe partieshereto. In the event of a
conflict between the teems of this agreement and an other a went the term~c of
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the other agreement shad control..
CITY. OF I~NAT
City Manager
GAS CONSTRUCTION
Title
P~YA,SE I LLC
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