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HomeMy WebLinkAboutOrdinance No. 2459-2009the n'[y c/ KENAI, ALASKA CITY OF KENAI ORDINANCE NO. 2459 -2009 Suggested by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $31,000 IN THE GENERAL FUND TO INCREASE THE COMPENSATION TO THE KENAI CONVENTION AND VISITORS BUREAU, INC. (KCVB). WHEREAS, the City of Kenai and the KCVB entered into a Maintenance and Operation Agreement effective July 1, 1998; and, WHEREAS, the amount of compensation for operations of the Center under the Agreement was amended October 2004 to $64,000; and, WHEREAS, the Council of the City of Kenai adopted the Annual Budget for Fiscal Year Commencing July 1, 2009 appropriating $69,000 to Professional Services for compensation for operation of the Center; and, WHEREAS, the KCVB requires additional funds to performs the services under the scope of the Maintenance and Operation Agreement; and, WHEREAS, the City has agreed to increase compensation for the six months ending December 31, 2009 to a rate of $95,000 per year for operations of the Center, including advertising in the KCVB Annual Visitors Guide; and, WHEREAS, pursuant to a new Maintenance and Operation Agreement effective January 1, 2010, the City will compensate the KCVB $125,000 per year for operations of the Center, including advertising in the KCVB Annual Visitors guide; and, WHEREAS, the total amount in excess of budgeted amounts for the aforementioned increases is $31,000 through June 30, 2009. NOW, THEREFORE, BE IT ORDAINED BY THE 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 Increase Appropriations: Visitor Center Professional Services New Text Underlined [DELETED TEXT BRACKETED] $31,000 31,000 SUBSTITUTE Ordinance No. 2459 -2009 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of December, 2009. Al I EST: Carol L. Freas, City Clerk Approved by Finance: PAT PORTER, MAYOR New Text Underlined; [DELETED TEXT BRACKETED] Introduced: December 2, 2009 Adopted: December 16, 2009 Effective: December 16, 2009 thc of KENA� SKA To: Rick Koch, City Manager 1 From: Terry Eubank, Finance Director Date: December 9, 2009 Re: Substitute Ordinance 2459 -2009 Subsequent to preparing Ordinance 2459 -2009 an agreement was reached with the Kenai Convention and Visitors Bureau, Inc., (KCVB) the operator of the City's Visitor Center, on a new operating agreement. In addition to the increase in annual compensation proposed to the KCVB in the original version of Ordinance 2459 -2009, the new operating agreement has an additional increase in compensation. The FY2010 Budget included annual compensation for KCVB of $79,000 including advertising in the KCVB Annual Visitor Guide. The original version of Ordinance 2459 -2009 increased the amount of compensation to $95,000 annually and included advertising in the Annual Visitors Guide. The annual difference is $16,000 or a FY2010 increase of $8,000 for the period July 1, 2009 through December 31, 2009. Effective January 1, 2010 the annual compensation for the operating agreement will be $125,000 annually. The FY2010 increase need to fund this change will be $23,000 for the period January 14, 2010 through June 30, 2010. The total FY20I0 i ncrease needed for these changes is $31,000. Tillage with a Past, Ct y with a Fittrtre FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 ext 221 FAX: 907 283 -3014