Sponsored by: Administration
CITY OF KENAI RESOLUTION NO. 2017-71 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A BUDGET TRANSFER WITHIN THE GENERAL FUND - STREETS DEPARTMENT FOR RENT OF WAREHOUSE SPACE IN LIEU OF ADDING SALT TO ROAD SAND FOR WINTER ICE CONTROL. WHEREAS, the cost of renting the warehouse is less than the cost of purchasing salt; and, WHEREAS, the use of salt on the roads results in accelerated corrosion of public and City vehicles and equipment; and, WHEREAS , an analysis of the fair market value for rented warehouse space was performed. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1.
That the following budget transfer be made:
General Fund - Streets Department From: Operating Supplies
$14.000
To: Rentals Section 2. enactment.
$14.000
That pursuant to KMC 1.15. 080(b) this Resolution shall take effect upon
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this
5th
day of December, 2017.
BRIAN GABRIEL SR., MAYOR ATTEST:
Jamie Heinz, City Clerk
Approved by Finance:
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'lftffate a1/tlt a PaJ'~ Ct~ a1/tlt a f°u.tfl.l"e" 210 Fidalgo Ave , Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Sean Wedemeyer, Public Works Director/Capital Projects Manager SJ1 JJ
DATE:
November 16, 2017
SUBJECT:
Resolution authorizing a budget transfer for rent in lieu of salt
? ·O ·
The purpose of this memo is to provide information supporti ng the resolution authorizing a budget transfer within the general fund - streets department for rent of warehouse space in lieu of add ing salt to road sand for wi nter ice control. Historically the Streets has placed sand in the warm storage building at 332 Airport Way as opposed to mixing salt in the sand for winter ice control on the streets. During the design of the new warm storage building the City Manager directed me to remove the bay intended for sand storage from the design. He directed me to plan to store the sand outside and mix it with salt. The Streets Department proceeded with purchasing salt and mixing it with the sand intended for use on the streets. Storing the sand outside has resulted in costs, challenges, and complications. $29,250 was budgeted in the current fiscal year for salt. The salt should be stored out of the elements utilizing covered storage until mixed with the sand using labor, fuel and equipment. The sand pile once mixed with salt, shall be kept covered with tarps lest the salt leach out during precipitation. Despite diligent mixing and covering, some sand freezes regardless, making it unusable and difficult to manage. One of the more concerning complications was broug ht to our attention by the Shop foreman. The City mechanics have witnessed significant acceleration in corrosion to City equipment after we implemented using salt. The City Manager determined a fair market value of utilizing the warehouse space and it is less than half of the amount budgeted for sand . Thank you for your consideration.