HomeMy WebLinkAboutOrdinance No. 3245-2021CITY OF KENAI
ORDINANCE NO. 3245-2021
Sponsored by: Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A
BUDGET TRANSFER AND INCREASING ESTIMATED REVENUES AND APPROPRIATIONS
IN THE CONGREGATE HOUSING FUND FOR THE PURCHASE AND INSTALLATION OF
EQUIPMENT TO PROVIDE VINTAGE POINTE RESIDENTS BASIC TELEVISION AND
WIRELESS INTERNET SERVICE.
WHEREAS, pursuant to the Vintage Pointe Manor Tenant Lease Agreement, the City provides a
basic cable television package to its tenants to be determined at the City's sole discretion; and
WHEREAS, GCI, Inc., the current cable television provider has announced it will be discontinuing
bulk cable television services in September 2021; and,
WHEREAS, after considerable investigation and with no other cable television options, the best
solution is to provide basic television channels and internet services to tenants in lieu of basic
cable television; and,
WHEREAS, continued television services, along with internet service, are in the best interest of
the residents of Vintage Pointe Manor and the City of Kenai.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That the following transfer is authorized:
Congregate Housing Fund:
Decrease Appropriations —
Utilities
$77
Increase Appropriations —
Small Tools/Minor Equipment $7
Section 2. That the estimated revenues and appropriations be increased as follows:
Congregate Housing Fund:
Increase Estimated Revenues —
Appropriation of Retained Earnings $12.228
Increase Appropriations —
Small Tools/Minor Equipment $ 2,629
Repair & Maintenance 9,599
$12.228
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Ordinance No. 3245-2021
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Section 3. 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 4. Effective Date: That pursuant to KMC 1.15.0700, this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of September,
2021.
ATTEST:
MMC, City Clerk
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Approved by Finance: //Z G�/�f�_�—
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BRIAN GABRIEL SR., O.
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Introduced: September 1, 2021
Enacted: September 15, 2021
Effective: September 15, 2021
New Text Underlined; [DELETED TEXT BRACKETED]
K E N A I
City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.6naixity
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Kathy Romain, Senior Center Director
DATE: August 26, 2021
SUBJECT: Ordinance No. 3245-2021 — Congregate Housing Cable Television
Section 6A of the Vintage Pointe Manor Tenant Lease Agreement states:
City shall provide heat, water, sewer, and garbage services for the Premises. City shall
also provide a basic cable television package (to be determined at the City's sole
discretion) to Tenant.
GCI, Inc. announced earlier this year it would be discontinuing its cable service and replacing it
with an online streaming service (Yukon TV). This would also require hookup to its internet
service at a significant cost increase to the City. Initially, we had been given to the end of the
year, but earlier this month we were told cable television to its bulk contracted services would
expire sometime in September. To this date, we have not been able to get a confirmed day this
service would end.
Our current cost is approximately $8,650 per year to provide cable television to 40 apartments
and 1 commons area. Each tenant receives a cable receiver and has the option to purchase
additional equipment or channels at their own expense. This does not include internet services.
During recent months we have researched different options for a basic television service
comparable to what we currently receive. The options to provide something similar to cable
would require a dish or satellite service with a locked in 5 -year agreement and a big cost
increase. As quickly as technology is changing, we believe the equipment would be outdated
before the life of the contract ends.
Terry Eubank and Dan Castimore explored an additional option and found we could provide our
tenants 18 channels of free television (out of Anchorage) along with internet services for just
equipment costs to our building. This would also help ease tenants into the next stages of
television viewing without increasing their rent. The ability to provide internet services to tenants
would also allow them to stream any desired channels without paying for channels in which they
have no interest. Administration estimates that the total cost for installation of this option would
total $18,400, of which $9,700 is for materials and $8,700 is for labor. If necessary, updated
installation costs and an amendment to this ordinance will be provided at the September 15Th
Council meeting. The annual recurring cost, comprised of licensing fees and equipment
replacement on a 7 -year cycle, would be approximately $2,000
This option solves many of the difficulties and increased costs associated with losing the cable
service through GCI, Inc. After months of discussion and research, I believe this is in the best
interest of our tenants. There will be some education and a learning period as tenants adjust to
new technology. The Senior Center staff will be prepared and provide such trainings.
I respectfully request consideration of Ordinance 3245-2021.
Thank you.
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