HomeMy WebLinkAboutOrdinance No. 2517-2010LryJf
KENAI, ALASKA
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA DECREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $8,167.75 IN THE CONGREGATE
HOUSING CAPITAL PROJECT FUND DUE TO THE SETTLEMENT REACHED WITH
THE INSURANCE COMPANY.
WHEREAS, the dry pipe fire suppression system at the Congregate Housing fac
experienced a failure in December 2009; and,
WHEREAS, Ordinance No. 2483 -2010 appropriated
facility from anticipated restitution; and,
WHEREAS, the City has agreed to a settlement with the insurance company for
5 181,832.25; and,
WHEREAS, the settlement amount is sufficient to complete the repairs at the
Congregate Housing Facility but represents a reduction of $8,167.75 from what was
originally anticipated.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that estimated revenues and appropriations be decreased as follows:
Congregate Housing Capital Projects Fund
Decrease Estimated Revenues:
Restitution
Decrease Appropriations:
Construction
ATTEST:
Carol L. Frea City Clerk'
Approved by Finance:
CITY OF KENAI
ORDINANCE NO. 2517 -2010
Suggested by: Administration
190,000 for the repairs to the
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of
October, 2010.
PAT PORTER, MAYOR
New Text Underlined; [DELETED TEXT BRACKETED]
$8,167.75
8,167.75
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Introduced: October 20, 2010
Adopted: November 3, 2010
Effective: November 3, 2010
KENAI, ALASKA
To: Rick Koch, City Manager
71 From: Terry Eubank
Date: October 14, 2010
Re: Ordinance 2517 -2010
Tif laye with a Past, Ci y with a Future
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 ext 221 FAX: 907 283 -3014
The Vintage Pointe senior housing center experienced a failure in its newly installed dry pipe
sprinkler system in December 2009. The City immediately filed claim with the installing
contractor's insurance company seeking full restitution for the damages.
Ordinance 2483 -2010 appropriated funds for repairs to the facility in the amount of $190,000
with restitution as the presumed revenue source. As reported, recommended by the
administration, and subsequently approved by Council at the October 6, 201 Council meeting,
the contractor's insurance company has proposed full settlement of the claim for $181,832.25.
As a result the City will receive $8,167.75 less restitution than previously estimated and
appropriated.
Ordinance 2517 -2010 seeks to reduce the prior appropriation to the settlement amount. Based
upon project bid amounts there is sufficient budget at the settlement amount to complete the
repairs absent any unforeseen damage yet to be discovered.