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HomeMy WebLinkAboutOrdinance No. 3384-2023KENAI CITY OF KENAI ORDINANCE NO. 3384-2023 Sponsored by: Administration AN ORDINANCE CANCELLING PREVIOUSLY APPROPRIATED PROJECTS, AUTHORIZING A TRANSFER OF FUNDS FROM THE WASTEWATER FACILITY CAPITAL PROJECT FUND TO THE WATER AND SEWER CAPITAL PROJECT FUND AND APPROPRIATING SUPPLEMENTAL FUNDS FOR THE CONSTRUCTION OF A NEW WATER PUMP HOUSE AT THE CITY'S WATER TREATMENT FACILITY. WHEREAS, the Water and Sewer Utility's number one capital priority in the 2024-2028 Capital Plan was construction of a new pumphouse at the Utilities Water Treatment Facility; and, WHEREAS, construction of the pumphouse was contingent on receiving grant funds; and, WHEREAS, on August 1, 2023 the City was notified the project was eligible for a $1,200,000 loan from the Alaska Drinking Water Fund and loan forgiveness of $1,200,000; and, WHEREAS, with the assistance of Bond Counsel, it was determined that if the City paid for the cost of construction and then sought reimbursement that the City would not incur debt: and, WHEREAS, the City has identified other projects which may be canceled to provide the needed funding to pay for the upfront cost of construction; and, WHEREAS, projects in the Wastewater Facility Capital Project Fund to be canceled include design of a remodel of the Wastewater Facility Operations Building, $300,000, Wastewater Facility Aeration Basin Recoating, $90,000, and Wastewater Facility Pump House Recoating, $40,000; and, WHEREAS, canceling of the projects in the Wastewater Facility Capital Project Fund will provide for a transfer of $400,000 to the Water and Sewer Capital Project Fund and the return of $30,000 to the Water and Sewer Special Revenue Fund; and, WHEREAS, projects in the Water and Sewer Capital Project Fund to be canceled include the project to design disinfectant generation equipment, $100,000, and the project for improvements at the utilities Reservoir#1, $300,000; and, WHEREAS, the $400,000 in funds made available from canceling projects in the Water and Sewer Capital Project Fund will be combined with the $400,000 being transferred from the Wastewater Facility Capital Project Fund, $400,000 to supplement the $400,000 previously appropriated for the design of a new pump house for a total project budget of $1,200,000. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the following previously appropriated projects in the Wastewater Facility Capital Project Fund are canceled: 1. Wastewater Facility Operations Building Remodel Design 2. Wastewater Facility Aeration Basin Recoating 3. Wastewater Facility Pump House Recoating $300,000 90,000 40,00 $430.000 New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3384-2023 Page 2of2 Section 2. That the following previously appropriated projects in the Water and Sewer Capital Project Fund are canceled: 1. Disinfectant Generation Equipment Design ' $100,000 2. Reservoir #1 Pumphouse Improvement 300,000 $401M Section 3. That the following transfers in the Wastewater Facility Capital Project Fund are authorized: Transfer to Water and Sewer Capital Project Fund $400,000 Transfer to Water and Sewer Special Revenue Fund 30.000 $430,000 Section 4. That estimated revenues and appropriations be increased as follows: Water and Sewer Capital Project Fund: Increase/Decrease revenues: Appropriation of Fund Balance $400,000 Transfer from Wastewater Facility Capital Project Fund 400.000 MUM Increase/Decrease expenditures — Water Treatment Pumphouse Project — Construction $800 Section 5. 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 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance all take effect immediately upon enactment. %� ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,T IS 3RD DA _ _JA[yltfY, 2024. nry Kna ATTEST: _ i Mich'e -M_Sa err, M JC, City Clerk Approved by Finance: Introduced: December 20, 2023 Enacted: January3, 2024 Effective: January 3, 2024 New Text Underlined; [DELETED TEXT BRACKETED] 10/ N A KI City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-77941907..283.75351 www.kenaixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Scott Curtin, Public Works Director DATE: December 13, 2023 SUBJECT: Ordinance No. 3384-2023 Water Pump House The purpose of this memo is to clarify the prioritization of funds in the Water and Sewer Capital Project Funds. As Council has already been informed, the department was successful in applying for and receiving a $1,200,000 grant in support of our Water Pump House project. This project is intended to resolve a primary deficiency within our water distribution system. Our city does not have a water tower to provide constant water pressure. Our system is dependent upon pumps to provide and maintain that pressure. These pumps operate off of electricity, and a loss or interruption in power, results in a rapid drop in water pressure. This project will provide a new structure to house multiple new distribution pumps, controls and all appurtenances including back up power. Preliminary design work had already been completed at the time the water treatment plant was developed a little over a decade ago. This structure did not go forward at that time due to a lack of funding. Those drawings are being updated to todays codes as well as to comply with grant requirements. Regarding the projects that are being canceled to support this work, the Wastewater Operations Facility remains a high priority and the design for this project will be moved to FY2025 in the upcoming draft of the Capital Improvement Plan. The Disinfectant Generation Equipment and Airport Reservoir project will also move forward at later dates and will be detailed within the upcoming Capital Improvement Plan to reflect the change. The Aeration Basin Recoating project was intended to be completed with internal department staff. This project has not been able to move forward due to staff time constraints and will be evaluated for a future project to be bid out to contractors. The WWTP Pump House Recoating project was completed, with staff using a small amount of operational funds. The $40,000 allocated to this work is no longer needed. Transferring of these funds in support of the Water Pump House Project is in the best interest of the City. The Design work will continue through the winter with an Invitation to Bid tracking for a 2nd quarter 2024 release. Council's support is respectfully requested.