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HomeMy WebLinkAboutOrdinance No. 3503-2026KENAI CITY OF KENAI ORDINANCE NO. 3503-2026 Sponsored by: Administration AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE WATER & SEWER CAPITAL PROJECT FUND AND ACCEPTING A LOAN FROM THE STATE REVOLVING FUND PROGRAM FOR THE WATER TREATMENT PUMPHOUSE PROJECT. WHEREAS, the City of Kenai applied for and received a $1,200,000 forgivable loan from the State of Alaska Department of Environmental Conservation State Revolving Fund Program for the Water Treatment Pumphouse Project; and, WHEREAS, the City of Kenai applied for and received an additional $1,500,000 forgivable loam from the State of Alaska Department of Environmental Conservation State Revolving Fund Program for the Water Treatment Pumphouse Project for a total loan of $2,700,000; and, WHEREAS, this project will design and construct a new pumphouse, replace pumps and piping and install a new backup generator and pressure tanks; and, WHEREAS, the City previously appropriated $1,200,000 in Water & Sewer funds to the project; and, WHEREAS, it is in the best interest of the City to accept the forgivable loan funds to complete the project. 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 a forgivable loan from the State of Alaska Department of Environmental Conservation State Revolving Fund Program in the amount of $2,700,000 and expend the funds in accordance with the provisions of the grant. Section 2. That estimated revenues and expenditures be increased as follows: Water & Sewer Capital Protects Fund: Increase Estimated Revenues - State Grants - Increase Appropriations - Construction $2,700,000 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. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3503-2026 Page 2 of 2 Section 4. 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 4T" DAY OF FEBRUARY, 2026. ATTEST: Michelle\Vl. %n,er, N111QC, City Clerk Approved by Finance:,.;. J Victoria Askin, Vice Mayor Introduced: January 21, 2026 Enacted: February 4, 2026 Effective: February 4, 2026 New Text Underlined; [DELETED TEXT BRACKETED] T� KE r AI City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 wwwkenai.city MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Lee Frey, Public Works Director DATE: January 12, 2026 SUBJECT: Ordinance 3503-2026 - Increasing Estimated Revenues and Appropriations in the Water & Sewer Capital Project Fund and Accepting a Loan from the State Revolving Fund Program for the Water Treatment Pumphouse Project. The memo requests Council's approval to accept a forgivable loan from the State of Alaska Department of Environmental Conservation State Revolving Fund (SRF) Program to complete the Water Treatment Pumphouse Project. The project will consist of design and construction of a new pumphouse, replacement of pumps and piping and installation of a new backup generator and pressure tanks to maintain system pressure during power outages. The SRF loan is 100% forgivable and has been reviewed by legal counsel. Accepting this loan is not considered to be causing the City to take on debt. Originally, we received $1,200,000 from the SRF program. Upon completion of design work, it was determined that additional funding was needed to complete the project and an additional request was submitted. We received an additional $1,500,000 from the SRF program, totaling a $2,700,000 forgivable loan for the City. The City had previously appropriated $1,200,000 of Utility funds for this project with the intention of forward funding the project and apply to reimburse the original $1,200,000 loan received. Current designs and cost estimates have increased the scope and the $1,200,000 is expected to be needed to complete the project. Any remaining unused funds will be returned to the Utility Fund. The Utility Fund is able to handle the funds being used on this project with the Capital Improvement Plan projections. The Public Works Department recommends accepting the loan from the SRF Program to complete the Water Treatment Plan Improvement Project.