HomeMy WebLinkAboutOrdinance No. 3137-2020JC Sponsored by: Administration
K(;NAI
CITY OF KENAI
ORDINANCE NO. 3137-2020
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL AND MUNICIPAL
ROADWAY IMPROVEMENTS CAPITAL PROJECT FUNDS TO PROVIDE MATCHING FUNDS
TO THE STATE OF ALASKA DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
TO CONSTRUCT A PEDESTRIAN PATH FROM THE KENAI SPUR HIGHWAY TO BEAVER
LOOP ALONG BRIDGE ACCESS ROAD UTILIZING RESTRICTED GENERAL FUND , FUND
BALANCE.
WHEREAS, an Alaska Transportation Alternatives Program grant in the amount of $2, 181 ,669
has been allocated for the construction of 1.2 miles of pedestrian path beginning at the
intersection of the Kenai Spur Highway and Bridge Access Road and terminating at the
intersection of Beaver Loop and Bridge Access Road; and,
WHEREAS, the grant requires a local match which at this time is estimated to be $216,560, but
may increase or decrease as the project is developed and bid; and,
WHEREAS , restricted General Fund, Fund Balance proceeds, received from land and subsurface
mineral rights donated to the City by the Daubenspeck family and accepted by the City via
Resolution 80-178 , is available to meet the City's estimated match; and,
WHEREAS, the use of proceeds derived from the Daubenspeck family donation for construction
of a bike path is consistent with the donation's conditions of use and prior City uses of the funds;
and ,
WHEREAS, providing a link from the newly constructed Beaver Loop bike path into the heart of
Kenai will enhance the network of trails and bike paths in the City, provide greater recreational
opportunities for residents of and visitors to the City, 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 City Manager is authorized to e xecute an agreement at his discretion with
the Alaska Department of Transportation and Public Facilities in the amount of $2,398,229 for the
construction of 1.2 mi les of pedestrian path beginning at the intersection of the Kenai Spur
Highway and Bridge Access Road and terminating at the intersection of Beaver Loop and Bridge
Access Road .
Section 2. That the estimated revenues and appropriations be increased as follows :
General Fund :
Increase Estimated Revenues -
Ord inance No. 3137-2020
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Appropriation of Restricted Fund Balance -
Proceeds from Daubenspeck Family Donation
Increase Appropriations -
Transfer to Municipal Roadway Capital Project Fund
$216.560
$216.560
Section 3. That the estimated revenues and appropriations be increased as follows:
Municipal Roadway Capital Project Fund:
Increase Estimated Revenues -
Transfer from General Fund
Increase Appropriations -
Construction
$216.560
$216.560
Section 4. 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 5. Effective Date: That pursuant to KMC 1. 15 .070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 151 day of July, 2020.
ATTEST:
Approved by Finance : ~L ...... _U _______ ,
BRIAN GABRIEL SR., MAYOR
Introduced : June 17, 2020
Enacted: July 1, 2020
Effective: July 1, 2020
New Text Underlined; [DELETED TEXT BRACKETED]
City of Kenai I 210 ~i d a lgo Ave , Ke nai. AK 9961 1-7794 1907.283.7535 I www.kenai.ci!y
MEMORANDUM
TO:
THROUGH :
FROM :
DATE:
SUBJECT:
Mayor Gabriel and Council Members
Paul Ostrander, C ity Manager
Terry Eubank, Finance Director
June 5 , 2020
Ordinance 3137-2020
The purpose of this memo is to provide supplemental information for Ordinance 3137-2020 .
Ordinance 3137-2020 will appropriate the match needed for an Alaska Transportation Alternatives
Program (AT AP) grant in the amount of $2, 181,669 that has been allocated for the constr uction
of 1.2 miles of pedestrian path beginning at the intersection of the Kenai Spur Highway and Bridge
Access Road and terminating at the intersection of Beaver Loop and Bridge Access Road . The
pedestrian pathway will be constructed by the Alaska Department of Transportation and Public
Facilities (DOT) and once complete the City will be responsible for its maintenance.
The proposed source of City funding for the $216,560 in match will be proceeds the City has
received from land and subsurface mineral rights donated to the City by the Daubenspeck family.
These funds are currently classified as restricted fund balance in the City's General Fund because
of the restriction placed on the funds by the Daubenspeck's at the time of donation. The
Daubenspeck donation , estimated to be $3 ,000,000 at the time of donation, was accepted by the
City via Resolution 80-178 which contained the following language:
"BE IT FURTHER RESOLVED that the City honor the request of Mr. & Mrs. Daubenspeck that
the oil , gas, and mineral rights, including sales proceeds, royalties , revenue, or rental income
therefrom, from Tracts C , D, and E of the Daubenspeck Property Subdivision as well as from
Alaska Tidelands Survey No. 98, are to be dedicated to athletic programs sponsored by the City
of Kenai. The distribution of suc h funds will be at the full and sole discretion of the City Council
of the City of Kenai, Alaska , to the Parks & Recreation Commission or such other City agency or
city official as the City Council may from time to time authorize to use such distributions."
Prior uses of these funds by the City have been to fund the purchase of mowing equipment for
the Parks and Recreation Department, the purchase of playground equipment, construction of
the Kenai Multipurpose Facility, construction of the Kenai Soccer Complex, refin ishing the gym
floor at the Kenai Recreat ion Center, and other recreation related ex penditures. To date the City
has ex pended $2,009,530.58 in Daubenspeck proceeds and the balance of the funds through
May 31, 2020 was $780,3 33 .63.
Construction of a pedestrian pathway will provide enhanced recreational opportunities for the
citizens and visitors of Kenai and the use of Daubenspeck proceeds for this construction is
consistent with past used of the funds and consistent with the request of the Daubenspeck's .
Council may consider dedicating the newly constructed pedestrian pathway in the name of the
Daubenspeck's as it will not only be funded with proceeds from the family's donation but will also
run adjacent to the donated property.
The match amount of $216,560 is DOT's best estimate at this time. This amount could increase
or decrease as the project is designed or constructed. Any increase in the required local match
will require a supplemental appropriation by Coun ci l through an Ordinance . The use of
Daubenspeck proceeds will decrease the City's General Fund Fund Balance but will have no
negative impact on the City's Fund Balance Policy .
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