HomeMy WebLinkAboutOrdinance No. 2332-2008Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2332-2008
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $113,222.22 IN THE VISITORS
CENTER HEATING SYSTEM CAPITAL PROJECT FUND TO REPLACE THE VISITORS
CENTER HEATING SYSTEM.
WHEREAS, the heating system at the Visitors Center needs to be replaced; and,
WHEREAS, the City of Kenai is part of a class action lawsuit that is expected to
generate funds to pay for a large part of the cost of replacing the heating system; and,
WHEREAS, the City of Kenai previously received approximately $71,731 as partial
settlement; and,
WHEREAS, it is in the best interest of the City of Kenai to appropriate these funds for
the purpose intended.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that estimated revenues and appropriations be increased as follows:
Visitors Center Heating System Capital Project Fund
Increase Estimated Revenues:
Restitutions $113,222.22
Increase Appropriations:
Construction $1 13,222.22
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this sixth day of
August, 2008. f~
PAT PORTER, MAYOR
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Carol L. Freas, City Clerk
Introduced: July 16, 2008
Adopted: August 6, 2008
~'` Effective: August 6, 2008
Approved by Finance:
(07/07/2008) ml
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210 FIDALGO AVE., KENA7, ALASKA 99611-0794
~`•~ TF'.I,EPHONH: 907-283-7535
PAX: 907-2833014
MEMORANDUM
'I'O: Mayor Porter and the Kenai City Council
PROM: ~~ Cary R Uraves, City Attorney
DATE: July 8, 2008
RE: Entrap II Claim Update
The Entrap II claim involves the class action suit on the defective radiant heat piping in the
Visitors and Cultural Center. The class action has divided up claimants into three classes.
Class I
Class I includes claimants who have had property damage such as leaking con~osion and/or
damages to the boIler. Under the settlement, claimants in Class I are to receive 34.2 % of their
"maximmn claim." The maximum claim is calculated on the basis of square footage heated by
the defective system. Despite the numbering system, Class I is the middle level of the claims.
The City's maximum claim under the settlement is $703,243.60. Class I claimants received an
initial payment of 10.2 % of their maximmn claim and are scheduled to receive another 24% for
a total of 34.2%.
Class II
Class II includes claimants who have had property damage including serious or catastrophic
failures of the heating system including major water damage andlor in-line breaks causing
property dvnage. Class II claimants received an initial payment of 10.2%. They get a second
payment of 16.1% and a final payment estimated at 26.3% for a total of 52.6%. Class II is the
highest level of claims.
The final payment will not be paid out until after the class closes on November 17, 2009. That is
the final date to f le a new claim or amend an existing claim.
Class III
Class III includes those claimants who have not yet suffered any property damage. They are
scheduled to receive a total payment of 10.2%. Class III is the lowest level of claims.
When we initially filed on May l9, 2005, we were in Class III since we had not yet suffered any
damage. We received a check for $71,730.85.
Enh'an II update
Page 2 of 2
AMENDED CLAIM
On April 10, 2008, we submitted a request to amend our claim from the lowest (Class IIl) to the
highest (Class II). We submitted addition information Bach as repair and replacement cost
estimateslinfonnationfiom Rick Koch and Bob Springer and an engineering report from Jerry
Herring (P.E.). Switching to a Class II was very important because it meant we would receive
about $300,000 more than a Class III claim and $130,000 more than a Class I claim.
On July 7`~', 2008, we received a letter n~forming us that our request had been approved. Also
included was a check for an additional $113,222.22. The total received so far is $184,953.07 or
about 26.3% of our maximum claim. We should be receiving another 263% a few months after
November 2009 when the claims period closes. The total received should be around $370,000.
Please let me know if you have any questions.