HomeMy WebLinkAboutOrdinance No. 2708-2013Suggested by: Administration
CITY OF KENAI
fANCE NO. 2708 -2013
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING
AND APPROPRIATING A GRANT IN THE AMOUNT OF $2,500,000 FROM THE STATE
OF ALASKA FOR THE WATER AND SEWER CAPITAL PROJECT FUND.
WHEREAS, SB18 granted the City $2,500,000 for construction of a new water storage
reservoir; and,
WHEREAS, S1318 was signed by Governor Parnell on May 22, 2013 and funding
becomes available July 1, 2013; and,
WHEREAS, the continued reliable operation of the City's water production and
distribution system is contingent upon construction of a new water storage reservoir
that will meet the existing and future water storage requirements of the City, provide
system redundancy, and provide alternate storage during major maintenance to the
City's existing 3- million gallon reservoir; and,
WHEREAS, acceptance of this grant is in the best interest of the City and its citizens.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA.
Section 1. Form. That this is a non -code ordinance.
Section 2. That the City Manager is authorized to accept a grant from the State of
Alaska in the amount of $2,500,000 for construction of a new water storage reservoir
and is authorized to execute a grant agreement and to expend the grant funds to fulfill
the purpose and intent of this ordinance.
Section 3. That estimated revenues and appropriations be increased as follows:
Water and Sewer Capital Project Fund
Increase Estimated Revenues:
State Grants $2.500.000
Increase Appropriations:
New Water Storage Facility Construction
Construction $2,500.000
Section 4. That pursuant to KMC 1. 15.0700 this Ordinance shall take effect on July
1, 2013.
Ordinance 2708 -2013
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June,
2013.
PAT PORTER, MAYOR
ATTEST:
San a odigh, City Clerk
Approved by Finance:
Introduced: June 5, 2013
Adopted: June 19, 2013
Effective: July 1, 2013
New Test Underlined; [DELETED TEXT BRACKETED]
"Vllaye with a Past, C# with a Future
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
the city of Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014
M
To: Rick Koch, City Manager
7.1 From: Terry Eubank, Finance Director
Date: May 29, 2013
Re: Ordinance 2708 -2013
The purpose of this memo is to provide supporting information for Ordinance 2708 -2013.
Ordinance 2708 -2013 will appropriate grant funds received from the State of Alaska for the
construction of a new water storage facility for the City's Water and Sewer Utility.
The City's existing 3- million gallon reservoir was constructed in 1978 and has been in
continuous service for 34 years. The reservoir has performed in an exemplary manner, providing
adequate storage to meet domestic, industrial, and fire protection needs for the community. In
2011, the City hired a consultant to perform a condition survey of the existing reservoir who
determined, "the interior coating system shows signs of extensive coating failure after its years
of service. The roof coating has failed over 30% of the surface and the shell coating has blisters
on 85% of the shell surfaces. The wall blisters are beginning to crack and cause large scale
underfilm corrosion and delamination. There is no serious metal loss at this time but the tank
will probably need to be repainted in 1 -3 years."
Construction of a new water storage reservoir will provide for the continued reliable operation of
the City's water production and distribution system, will meet the existing and future water
storage requirements of the City, provide system redundancy, and provide alternate storage
during major maintenance to the City's existing 3- million gallon reservoir.