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Home My WebLink AboutOrdinance No. 3536-2026KENAI CITY OF KENAI ORDINANCE NO. 3536-2026 Sponsored by: Administration AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE MUNICIPAL ROADWAY IMPROVEMENT CAPITAL FUND FOR THE PARTIAL CONSTRUCTION OF WATER, SEWER AND SIXTH STREET, ACCEPTING A US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT COMMUNITY DEVELOPMENT BLOCK GRANT PASSED THROUGH THE STATE OF ALASKA DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT AND ACCEPTING FUNDING FROM THE KENAI PENINSULA HOUSING INITIATIVE. WHEREAS, the City of Kenai with the Kenai Peninsula Housing Initiative applied for and received a $525,000 Community Development Block Grant from the US Department of Housing & Urban through the State of Alaska Department of Commerce, Community, and Economic Development to extend water and sewer utilities and the road on 6th Street; and, WHEREAS, the Kenai Peninsula Housing Initiative in cooperation with the City of Kenai has provided an additional $250,000 for construction of these improvements, including an estimated $42,000 for design and construction administration services and has agreed to provide additional funding if necessary for costs to complete the scope of work; and, WHEREAS, this project will construct water, sewer and road infrastructure approximately 200 feet north of the Redoubt Avenue right of way for access to senior housing being constructed by Kenai Peninsula Housing Initiative and will increase opportunity for future expansion of this infrastructure north; and, WHEREAS, pursuant to KMC 1.15.070(d) the City may introduce and finally pass on the same day, an ordinance making, repealing, transferring or otherwise changing and appropriation; and, WHEREAS, the funding needs to be available to bid and construct the water and sewer improvements in 2026; and, WHEREAS, it is in the best interest of the City to appropriate these funds. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to accept a grant from the US Department of Housing & Urban Development through the State of Alaska Department of Commerce, Community and Economic Development in the amount of $525,000 and expend the funds in accordance with the provisions of the grant. Section 2. That the City Manager is authorized to accept funds in the amount of $250,000 from the Kenai Peninsula Housing Initiative to construct infrastructure improvements for Sixth Street. Section 3. That estimated revenues and appropriations be increased as follows: Municipal Roadway Improvement Capital Project Fund: Increase Estimated Revenues: Federal Grant $525,000 Donation 250,000 $77 0 New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3536-2026 Page 2 of 2 Increase Appropriations — Sixth Street Improvements - Construction $77 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, T, 4% 5T" DAY �� 2026. Approved by Finance. ry H. Introduced: Enacted: Effective: New Text Underlined; [DELETED TEXT BRACKETED] r August 5, 2026 August 5, 2026 August 5, 2026 �K�NAI City of Kenai 1 210 Ficialgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.l<enai.city MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Lee Frey, Public Works Director DATE: July 29, 2026 SUBJECT: Ordinance No. 3536-2026 - Increasing Estimated Revenues and Appropriations in the Municipal Roadway Improvement Capital Fund for the Partial Construction of Water, Sewer and Sixth Street, accepting a US Department of Housing and Urban Development Community Development Block Grant Passed Through the State of Alaska Department of Commerce, Community, and Economic Development and Accepting Funding from the Kenai Peninsula Housing Initiative. This memo requests Council's approval to accept and appropriate a US Department of Housing & Urban Development Community Development Block Grant (CDBG) passed through the State of Alaska Department of Commerce, Community, and Economic Development and funding received from the Kenai Peninsula Housing Initiative (KPHI) to construct water, sewer and road infrastructure in the Sixth Street right of way. This project will extend a water main, a sewer main and a roadway approximately 200 feet north of the Redoubt Avenue right of way to provide infrastructure to adjacent lots and allow for future expansion to the northern undeveloped property. City Council authorized participation in the CDBG program through Resolution 2025-61. In December of 2025, the City of Kenai worked with KPHI to apply for CDBG funding to construct infrastructure in Sixth Street to construct senior housing on properties adjacent to this right of way. In March of 2026, the City was selected to be awarded a grant for this project in the amount of $525,000. KPHI has been working to construct senior housing on adjacent lots and has agreed to provide $250,000 in funding to the City to complete this project. KPHI has already paid for design costs for the construction drawings and specifications and will pay for construction administration estimated in the total amount of $42,000. They have also agreed to provide additional funding as needed to complete this work. City of Kenai is required to manage the grant and will work in cooperation with KPHI and their design consultant to bid, construct and manage the project. Appropriation of the funding is in the best interest of the City. A double reading of the Ordinance is requested to be able to award the entire contract at this meeting in August. This will allow the funding to be available prior to release of the project for bidding and construction. Water and sewer infrastructure is planned to be installed in 2026 and additional work on the road will be finished in the summer of 2027. y � � 16Z 1'J�3V NOIlbZItlOHlflb ••�•��\\ (n � � = ss C3 4 q Eu� z 2 0 NOS73N ■Q,•�S e �jC ■ T S ig■n Q=I N Y££ z ZLLI •� w fyLL •lo Is• p) tee;Psq;• ° @ •�� ls• 1 `� m `E • ... $ oc Q s 2 Q J Q 0N p tg - ZaQQ � ••....•• ....� ; $� as 1 I n I as I — I o w I I (� 1 I w 3 I I I w co I J 1 00 o"n j ± I a I C, I Z Q g I —SD—SD—SJ — SD SD-51 Q —w—w—w,`-; w w w—w- O 1 ` W w I i 2 7 —ss—ss�ig + C, H N Z 7 � H r agg � Z W at " I F City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.kenai.city MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Kevin Buettner, Planning Director DATE: July 31, 2026 SUBJECT: Ordinance 3536-2026 Requested Amendment This memo requests an amendment to Section 3, of Ordinance 3536-2026. The individual revenue line items of $525,000 and $250,000 are correct, but the total should be $775,000 instead of $725,000. Correspondingly, the appropriations total should also be $775,000 to match the revenues. The following amendment is respectfully requested. Motion Amend Ordinance No. 3536-2026, Section 3 by correcting the total amount in the Increase Estimated Revenues paragraph and the total amount in the Increase Appropriations paragraph from $725,000 to $775,000. Thank you for your consideration.