HomeMy WebLinkAboutOrdinance No. 3335-2023KENAI
CITY OF KENAI
ORDINANCE NO. 3335-2023
Sponsored by: Administration
AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT
FUND FISCAL YEAR 2023 BUDGET FOR UTILITY COSTS ASSOCIATED WITH THE ALASKA
REGIONAL FIRE TRAINING CENTER.
WHEREAS, the City of Kenai, and Beacon Occupational Health & Safety Services entered into a Facility
Management Agreement to operate the Alaska Regional Fire Training Center on the 18th day of March
2008; and,
WHEREAS, the initial term of the Agreement continued until December 31, 2012, at which time the
Agreement automatically renewed annually until notice of termination was given by either party; and,
WHEREAS, Beacon gave notice of termination of the Agreement effective December 31, 2022; and,
WHEREAS, upon termination of the Agreement all of the Center utilities, previously paid by Beacon,
reverted to the Kenai Municipal Airport resulting in costs in excess of budgeted amounts; and,
WHEREAS, effective January 1, 2023, Beacon entered into a Special Use Permit to lease 1,716 square
feet of exclusive use space and 2,250 square feet of common use space at the Center; and,
WHEREAS, the monthly revenue received by the Airport from Beacon for the use of the space described
in the SUP is $5,468.16, and will help support the additional utility costs; and,
WHEREAS, $16,758 of unexpended funds remain in the Center utilities fund; and,
WHEREAS, the estimated cost of utilities at the Center for the second half of Fiscal Year 2023 is $87,450
resulting in $70,692 of cost in excess of budgeted amounts.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. That the estimated revenues and appropriations be increased as follows:
Airport Special Revenue Fund:
Increase Estimated Revenues —
Appropriation of Fund Balance $37,883
Alaska Regional Fire Training Center Office Lease 32,809
$70.692
Increase Appropriations —
Training Facility Utilities
Section 2. 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
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Ordinance No. 3335-2023
Page 2 of 2
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 3. 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 15T" DAY OF FEBRUARY,
2023.
Brian Gabriel Sr., Mayor
C
T:
Michell ner, MC, City Clerk
Approved by Finance:
Introduced: February 01, 2023
Enacted: February 15, 2023
Effective: February 15, 2023
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KENAI
Cify of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1 907.283.7535 I www.kenai.city
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Eland Conway, Airport Manager
DATE: January 25, 2023
SUBJECT: Ordinance 3335-2023 Increasing estimated revenues and
appropriations for the AK Regional Fire Training Center utilities
This memo recommends enacting Ordinance 3335-2023, increasing estimated revenues and
appropriations in the Airport Special Revenue Fund for utility costs at the Alaska Regional Fire
Training Center in excess of budgeted amounts.
Since March 2008, Beacon Occupational Health & Safety Services has operated the Alaska
Regional Fire Training Center through a Facility Management Agreement. In February 2022,
Beacon notified the Kenai Municipal Airport they would terminate the agreement effective
December 31, 2022. Upon termination of the agreement all utility costs reverted back to the
Airport.
At the January 4, 2023 City Council Meeting, Council approved a Special Use Permit allowing
Beacon to occupy 1,716 square feet of exclusive use space and 2,250 square feet of common
use space on Level 1 of the Alaska Regional Fire Training Center. The monthly fee for use of the
is $5,468.16, plus applicable sales tax.
The estimated cost of the utilities for January — June of FY2023 is $87,450. Council appropriated
$23,831 to utility cost for the Alaska Regional Fire Training Center in the FY2023 Budget. There
is a balance of $16,757.72 remaining.
Ordinance 3335-2023 appropriates funds to from the Airport Special Revenue Fund to satisfy the
unexpected utility obligation for the Alaska Regional Fire Training Center Operational Budget.
Council's support is respectfully requested.
January - June 2023
Estimated Utilities $87,450
Unexpended Utility Balance (16,758)
Unbudgeted Utility Expense $70,692
Unbudgeted SUP Revenue $32,809
Appropriation of Fund Balance 37,883
Total Funding for Utilities $70,692