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HomeMy WebLinkAboutOrdinance No. 3256-2021KENAI CITY OF KENAI ORDINANCE NO. 3256-2021 Sponsored by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT IMPROVEMENTS CAPITAL PROJECT FUNDS, AUTHORIZING THE ACCEPTANCE OF A GRANT FROM THE FEDERAL AVIATION ADMINISTRATION FOR THE KENAI MUNICIPAL AIRPORT SAND STORAGE FACILITY CONSTRUCTION PHASE II, AND AUTHORIZING A BUDGET TRANSFER IN THE AIRPORT IMPROVEMENTS CAPITAL PROJECT FUND — KENAI MUNICIPAL AIRPORT SAND STORAGE FACILITY PROJECT TO FACILITATE THE RETURN OF FUNDS ADVANCED FROM THE AIRPORT SPECIAL REVENUE FUND. WHEREAS, Resolution 2020-79 approved on the 16th day of September, 2020 previously authorized the City Manager to accept a Federal Aviation Administration grant for Phase I construction of the Kenai Municipal Airport Sand Storage Facility; and, WHEREAS, via Ordinance 3155-2020 Substitute the City of Kenai accepted and appropriated grant 3-02-0142-064-2020 from the Federal Aviation Administration totaling $1,954,101 on the 24th day of September, 2020 for Phase I of the Kenai Municipal Airport Sand Storage Facility; and, WHEREAS, Ordinance 3155-2020 Substitute included advance funding from the Airport Special Revenue Fund in the amount of $729,931 which when combined with $265,681 of advance funding for project design brings the total project advance funding to $995,612; and, WHEREAS, the City of Kenai has received grant offer 03-02-0142-065-2021 from the Federal Aviation Administration totaling $881,161 for Phase II of the Kenai Municipal Airport Sand Storage Facility; and, WHEREAS, authorization of a budget transfer to move previously advanced funds from construction to the Airport Special Revenue fund is needed to return previously advanced funds; and, WHEREAS, acceptance of the Phase II grant, a budget transfer to facilitate the return of advanced funds and this appropriation 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 accept grant funding of $881,161.00 from the Federal Aviation Administration. L� Ordinance No. 3256-2021 Page 2 of 2 Section 2. That the revenues and appropriations be increased as follows: Airport Improvement Capital Project Fund: Increase Estimated Revenues — Federal Grants X881.161 Increase Appropriations — Kenai Municipal Airport Sand Storage Facility — Construction $$$ Section 3. That the following budget revision is authorized: Airport Improvement Capita[ Project Fund: Decrease Expenditures - Kenai Municipal Airport Sand Storage Facility — Construction Increase Expenditures —Transfer to Airport Special Revenue Fund $$$1 tG1 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 15th day of December, 2021. BRIAN GABRIEL SR., MAYOR ATTEST: r(.SNA/ q( mi Heinz, Md' City Clerk •"' �'• i� • Approved by Finance: _ •• f a O•'•°N N•'' � %1Introduced: December 1, 2021 Enacted: December 15, 2021 Effective: December 15, 2021 New Text Underlined; [DELETED TEXT BRACKETED] 7 KENAI _.., _.. ,enai 1210 Fidal. Ave, Kenai, AK 99611-77941907.283 7535 1 ww .kenai.city MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Eland Conway, Airport Manager DATE: November 22, 2021 SUBJECT: Ordinance No. 3256-2021 The purpose of this memo is to request Council's approval to: 1. Increase estimated revenues and appropriations in the Airport Improvements Capital Projects Fund, 2. Accept a grant from the Federal Aviation Administration (FAA) to cover project costs associated with Phase II of the Kenai Municipal Airport (ENA) Sand Storage Facility, 3. Authorize a budget transfer from the Airport Improvements Capital Projects Fund to the Airport Special Revenue Fund. At the FAA's request the ENA Sand Storage Facility was divided into two (2) continuous phases. Phase I allowed the FAA to appropriate grant 03-02-0142-064-2020 in September 2020, $1,954,101 of the $2,835,262 project, within the Federal Government's fiscal year 2020 (October 2019 to September 2020). In May of 2021 the FAA appropriated grant 03-02-0142-065-2021, the remaining $881,161 of the $2,835,262 project. In order to expedite and streamline the project, Council authorized two budget transfers totaling $995,612 from the Airport Special Revenue Fund to forward fund $995,612 of the $2,835,262, including $114,451 in contingencies. Ordinance No. 3256-2021 appropriates the $881,161 FAA Grant 03-02-0142-065-2021 to the Airport Improvements Capital Project Fund and returns $881,161 of the forward funded $995,612. The remaining $114,451 contingency remains in the Airport Improvements Capital Project Fund. Any contingency funds used may be eligible for FAA reimbursement at 93.75% to 100°/x. Any remaining contingency funds will remain in the Airport Improvements Capital Projects Fund for future ENA capital projects or be returned to the Airport Special Revenue Fund. Council's support is respectfully requested. FAA Grant 03-02-0142-064-2020 ENA Special Revenue Fund -ADVANCE (HDL Engineers Contract Administration Services) ENA Special Revenue Fund -ADVANCE (Project Balance + $114,451 Contingency) FAA Grant 03-02-0142-065-2021 ENA Special Revenue Fund -RETURN Sand Storage Project Balance (Total Grants + $114,451 Contingency) $ 1,954,101 265,681 729,931 881,161 ( 881,161) $ 2,949,713 Page 2 of 2 The City of Kenai I www.kenai.city