ORDINANCE 06-43

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA ACCEPTING OCEAN DRIVE LOOP EROSION CONTROL PROJECT SETTLEMENT FUNDS IN THE AMOUNT OF $540,000 AND APPROPRIATING THOSE FUNDS TO THE SPECIAL PROJECTS FUND.

WHEREAS, The Homer City Council has approved a partial settlement of claims arising from the Ocean Drive Loop Erosion Control Project between the City, the Property Owners in the Local Improvement District, the Project Engineer, and the manufacturer and distributor of certain materials used in seawall construction, and

WHEREAS, The settlement amount is $540,000, the money has been received by the City, and it will be administered and allocated as prescribed in the approved agreement between the City and the property owners within the Local Improvement District, and

WHEREAS, The Special Projects Fund was established using seed money from the proceeds of an old lawsuit settlement to provide working capital, local match funding, and a revolving loan fund for special City capital projects, and

WHEREAS, The costs associated with construction of the seawall were charged to the Special Projects Fund and the Fund was not reimbursed with the proceeds of a bond sale as was originally planned because a lawsuit filed by the property owners made the sale of bonds impossible, and

WHEREAS, The City Council wishes to partially replenish the Special Projects Funds with these settlement funds, and

WHEREAS, Assets of the Special Projects Fund cannot be spent, obligated or appropriated in any way without a budget ordinance approved by the Council.

NOW THEREFORE, The City of Homer Ordains:

Section 1. The Homer City Council hereby accepts Ocean Drive Loop Erosion Control Project settlement funds in the amount of $540,000 pursuant to the settlement agreement(s) and appropriates those funds to the Special Projects Fund; Account Number 158-375-4906.

Section 2. This Ordinance is a non code Ordinance, and is not of a permanent or general character and therefore, shall not be included in the Homer City Code.

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Ordinance 06-43

City of Homer

Section 3. This ordinance shall become effective immediately upon adoption.

PASSED AND ENACTED this _______ day of _______, 2006.

CITY OF HOMER

JAMES C. HORNADAY, MAYOR

ATTEST;

MARY L. CALHOUN, CMC, CITY CLERK

Introduction: July 24, 2006

Public Hearing:

Second Reading:

Effective Date:

Ayes:

Nayes:

Abstain:

Absent:

Reviewed as to form and content:

Walt Wrede, City Manager Gordon Tans, City Attorney

Date: Date:

Fiscal Note: Settlement Revenue / $540,000