HomeMy WebLinkAboutOrdinance No. 2270-2007Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2270-2007
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $71,730.85 IN THE GENERAL
FUND FOR REPAIR OF THE VISITOR'S CENTER HEATING SYSTEM.
WHEREAS, the City of Kenai received $71,730.85 in FY2006 as part of a class action
suit brought to remedy faulty in-floor heating components; and,
WHEREAS, the City is pursuing additional funds to cover the expected cost of
replacing the heating system at the Visitor's Center; and,
WHEREAS, the $71,730.85 is in the General Fund fund balance designated for
Visitor's Center heating system repair.
NOW, THEREFORE, BE IT ORDAINED BY fiHE COUNCIL OF THE CITY OF KENAI,
ALASKA that estimated revenues and appropriations be increased as follows:
General Fund
Increase Estimated Revenues:
Appropriation of Fund Balance- Designated for Visitors $71,730.85
Center Heating System Repair
Increase Appropriations:
Buildings -Repair and Maintenance $71,730.85
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fifth day of
December, 2007. ~-~--
PAT PORTER, MAYOR
ATTEST: y ,~y~~
Carol L. Freas, City Clerk
Approved by Finance: ~C~~
(11/9/2007) hl
Introduced: November 21, 2007
Adopted: December 5, 2007
Effective: December 5, 2007
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KENA~ SKA
"~'~laye wit~t a Past, Gc~ wit~t a Fr~tuv'e"
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: 907-283-7535 /FAX: 907-283-3014 ,''III
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MEMO:
TO: City Council
~1,~~~ FROM: Rick Koch
DATE: November 15, 2007
SUBJECT: Ordinance 2270-2007
The ptupose of this correspondence is to discuss and request Council approval of
Ordinance 2270-2007. During FY 2006 the City received $ 71,730.85 as part of a class
action settlement for defective tubing Chat had been used in the in-floor heating system
at the Visitor's Center.
There were several classes of injured parties within the class-action suit. At the time the
City received the initial settlement, we were in the class that had not yet been damage by
the product failure.
Over the Last two years the tubuig systems have degraded causing failure of pumps,
damage to boIlers, and other related damages, including a significantly increased
investment of time by our maintenance personnel.
The class-action settlement provides the mechanism for parties to transition from one
class to another. If the City submits appropriate documentation as to our existing and
growing damages, we may be reclassified, and receive an additional settlement in the
amount of over $ 300,000.
Through the appropriation of funds already received by the City we will contract with a
mechanical engineering consultanC to prepare the necessary information for submission.
I estimate the work associated with the condition survey and preparation of materials to
be less than $ 10,000. The remainder of this appropriation will be used in the fiitw~e for
repair/replacement of the failing heating system.