HomeMy WebLinkAbout2020-05-18 Council Packet - Work SessionKenai City Council – Work Session
May 18, 2020 – 6:00 P.M.
Kenai City Hall
210 Fidalgo Avenue, Kenai, AK 99611
*Telephonic/Virtual Information Below*
www.kenai.city
Agenda
A. Call to Order
B. Introduction (Mayor Gabriel)
C. CARES Act Funding Presentation (City Manager, Finance Director)
D. Council Discussion
E. Public Comment (limited to 3 minute per individual; 20 minutes aggregate)
F. Adjournment
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please contact the City Clerk’s Office at 907-283-8231.
From:Paul Ostrander
To:Robert Tpeterkinii; tnavarre; Bob Molloy; Bob Molloy; Brian G. Gabriel, Sr.; Glenese Pettey; Henry Knackstedt;
Jim Glendening; Robert Peterkin; Tim Navarre
Cc:Christine Cunningham; Terry Eubank; Scott Bloom; Jamie Heinz
Subject:Monday work session information
Date:Friday, May 15, 2020 12:00:28 PM
Attachments:Treasury Guidance.pdf
Ordinance 3130-2020 FY2021 CARES Act Funding Appropriation_memo_po_law.docx
Governor request and allocations.pdf
RPL and allocative amounts.pdf
Ordinance 3130-2020 FY2021 CARES Act Funding Appropriation_law_po.docx
Dear Mayor Gabriel and City Council Members,
Attached is information for your review prior to the Council work session at 6 p.m. on Monday, May
18. Attached documents are as follows:
Governor request and allocations – This contains the original request from Governor Dunleavey on
April 21 to the Legislature asking them to distribute the CARES Act funding using the RPL process and
providing the allocative plan for the money.
Treasury Guidance – This contains the original Federal Treasury guidance issued on April 22 on how
CARES Act funding may be used as well as a frequently asked questions document issued on May 4
providing additional clarification on how the funds may be used.
RPL and allocative amounts – This contains the RPL for the Community Assistance portion of the
municipal share of the CARES Act funding ($257,548,754), the community by community allocation
of the Community Assistance and Direct Cost funding for municipalities, and a sample RPL for the
Direct Cost portion of the funding for municipalities ($311,024,132).
Ordinance 3130-2020 FY2021 CARES Act Funding Appropriation_memo_po_law – This contains the
memo that accompanies Ordinance 3130-2020 that Council will be considering at the May 20
regularly scheduled Council meeting.
Ordinance 3130-2020 FY2021 CARES Act Funding Appropriation_law_po – This contains Ordinance
3130-2020 that Council will be considering at the May 20 regularly scheduled Council meeting.
The allocation of the City’s portion of the CARES Act funding is an important Council decision.
Because the timing of both the receipt of and requirement for expenditure of the funds requires
introduction and passage at the same meeting (May 20, 2020) a work session prior to the regularly
scheduled meeting is warranted to allow for additional discussion. Administration will be looking for
direction from Council on the allocative departments identified by administration as outlined in
Ordinance 3130-2020, as well as the allocated amounts in each department.
Administration will use the work session to further explain how we envision the money would be
utilized in each of the departments. I anticipate that there will be discussion on if additional
departments should be added or alternatively, if some departments should be deleted. I also
anticipate that there will be discussion on the dollar amounts that have been allocated to each
department.
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I look forward to the work session. Please contact me if you have questions or would like additional
information.
Jamie will send out information later today, on when paper packets of the attached information will
be available.
Thanks,
Paul Ostrander
City Manager
City of Kenai
210 Fidalgo Avenue
Kenai, AK 99611
Office: 907.283.8222
Cell: 907.398.7581
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MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manager
DATE: May 15, 2020
SUBJECT: Ordinance No. 3130-2020, CARES Act Recovery Funding
The City of Kenai expects to receive $7,700,832 from the Federal Government passed through
the State of Alaska for expenditures in response to and recovery from the COVID-19 Pandemic
Emergency. Pursuant to the Revised Program Legislative (RPL) requirements, communities
receiving these payments will be required to certify compliance with federal guidance regarding
expenditures of CARES Act funds and that communities will be required to reimburse the State
for any misspent funds. Payments will be spread between FY2020 and FY2021. The first
payment the City will receive will be in FY2020 in the amount of $4,140,355. Because of ongoing
litigation concerning the legality of using the RPL process to appropriate these funds, it is unknown
when these funds will be distributed, although payment before the end of May is likely. The City
is scheduled to receive our second payment in the amount of $1,780,238 on July 1,2020 and a
third payment in the amount of $1,780,238 is scheduled for disbursement on October 1, 2020.
The RPL’s also state that the two FY2021 payments will only be made when 80% of the prior
payment has been expended. This requires a careful balance of expedient, yet responsible and
transparent utilization of the funding.
Administration has evaluated an approach to distributing the economic recovery funds according
to an allocation model to determine how to best support the long-term recovery of our local
economy. This approach includes an allocative model for expenditure of these funds which is
designed to identify broad categories, both governmental and private, where expenditures are
necessary due to impacts associated with the COVID-19 crisis.
This ordinance creates a special revenue fund; COVID-19 Cares Act Recovery Fund, with five
departments described as follows:
$2,500,000 – First Responder and Incident Management Team Payroll. This allocation includes
a reimbursement of City payroll expenses for Fire Department, Police Department, Public Safety
Dispatch and Incident Management Team.
$3,000,000 – Business and Not-for Profit Entity Recovery Grants. This allocation includes grant
awards to qualifying City of Kenai businesses or non-profits impacted by COVID-19 to offset
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impacts or to provide mitigation. The City will administer a grant program to determine eligibility
restrictions and requirements that may apply. Once fully developed, the grant program guidelines
will be brought to Council in the form of a resolution for consideration.
$300,000 – CARES Act Administration & Non-Payroll Expenditures. This allocation includes
reimbursement of City expenses related to COVID-19, which have been documented. These
expenses include City purchases to ensure the health and safety of City employees and residents
due to the disaster. All expenditures from this department will follow all City code requirements.
$900,832 – Individual Assistance Grants. This allocation includes grant awards to qualifying City
of Kenai households impacted by COVID-19 to offset impacts. The City will administer a grant
program to determine eligibility restrictions and requirements that may apply. Once fully
developed, the grant program guidelines will be brought to Council in the form of a resolution for
consideration.
$1,000,000 City Resiliency and Recovery. This allocation will include City of Kenai capital projects
or expenses intended to mitigate the impacts of COVID-19. All expenditures from this department
will follow all City code requirements.
To achieve the efficiency needed to utilize these funds in the timeframe allowed under the CARES
Act, this ordinance waives and / or modifies certain provisions of KMC 7.25.020. KMC 7.25.020,
the limitation of transferring less than $5,000 within each department is waived to allow the City
Manager to allocate funds to the correct accounts as expenditures arise. Further, the limitation
in KMC 7.25.020 to move less than $5,000 between departments is increased to $20,000 with
transfers of more than $20,000 requiring a resolution by the City Council.
As federal CARES Act funds become available and are expended in accordance with Federal
and State guidelines, the City Manager needs the authority to allocate budgeted amounts as
expenditures related to the COVID-19 Pandemic that arise in a time sensitive manner. The above
allocative framework provides Administration guidance in expending funds to best serve the
citizens of Kenai with responsible management.
Your consideration is appreciated.
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Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3130-2020
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DECREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE COVID-19 CARES ACT
RECOVERY FUND AND ACCEPTING FEDERAL CARES ACT FUNDING PASSED THROUGH
THE STATE OF ALASKA FOR EXPENDITURES IN RESPONSE TO THE COVID-19
PANDEMIC, WAIVING THE $5,000 LIMITATION IN KMC 7.25.020 (A) ON THESE FUNDS TO
ALLOW THE CITY MANAGER TO ALLOCATE THE FUNDS TO THE PROPER ACCOUNT AS
NEEDS ARISE AND DECLARING AN EMERGENCY.
WHEREAS, the World Health Organization declared COVID-19 as a pandemic on March 11,
2020; and,
WHEREAS, the first coronavirus patient in Alaska was diagnosed in Anchorage on March 12,
2020, and other positive diagnoses have since occurred on the Kenai Peninsula; and,
WHEREAS, Governor Mike Dunleavy issued a Declaration of Public Health Disaster
Emergency on March 11, 2020, and the President of the United States issued a Proclamation
Declaring a National Emergency on March 13, 2020; and,
WHEREAS, on March 18, 2020, the City Manager declared a local disaster emergency that was
extended the same day by the City Council; and,
WHEREAS, on March 24, 2020, the City Council enacted Ordinance 3115-2020 granting the City
Manager City certain emergency powers; and,
WHEREAS, on April 9, 2020 President Donald J. Trump approved a Disaster Declaration for the
State of Alaska; and,
WHEREAS, Ordinance 3126-2020 appropriated $50,000 in Federal CARES Act Funding in the
City’s General Fund; and,
WHEREAS, the administration has determined the use of a separate fund to account for all
expenditures in response and recovery from the COVID-19 Pandemic Emergency is most
efficient; and,
WHEREAS, deleting the appropriation made by Ordinance 3126-2020 and appropriating the
entire amount to be provided to the City by the State of Alaska into a single fund for tracking and
reporting purposes is in the best interest of the City; and,
WHEREAS, pursuant to KMC 1.15.70(d) the City may introduce and finally pass on the same day,
an ordinance making, repealing, transferring or otherwise changing an appropriation; and,
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Ordinance No.3130-2020
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_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
WHEREAS, state law and City Charter allow for emergency ordinances when necessary to
preserve public, peace health and safety; and,
WHEREAS, Kenai Municipal Code 7.25.020 – City Budget Control, limits the City Manager’s
authority to allocate funds in amounts $5,000 or greater; and,
WHEREAS, as federal CARES Act funds become available and are expended, the City Manager
needs authority to allocate budget amounts within and between departments as expenditures
related to the COVID-19 Pandemic arise in a time sensitive manner.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. Classification: that this Ordinance is not of a general and permanent nature and shall
not be codified.
Section 2. Declaration of Emergency: That the COVID-19 pandemic has created an emergency
recognized on the federal, state and local level and that this Ordinance is necessary to
immediately preserve public peace, health and safety.
Section 3. That the City Manager is authorized to accept a grant in the amount of $7,684,022
from the Federal Government passed through the State of Alaska for expenditures in response
to and recovery from the COVID-19 Pandemic Emergency.
Section 4. That the City Manager is authorized to execute grant agreements to accept these
funds.
Section 5. That the estimated revenues and appropriations be decreased as follows:
General Fund:
Decrease Estimated Revenues –
Federal Grants $50,000
Decrease Appropriations –
Non-Departmental – General Contingency $50,000
Section 6. That the estimated revenues and appropriations be increased as follows:
COVID-19 Cares Act Recovery Fund:
Increase Estimated Revenues –
Federal Grants $7,700,832
Increase Appropriations –
First Responder & Incident Management Team Payroll -
General Contingency $2,500,000
Business and Not-for-Profit Entity Recovery Grants -
General Contingency 3,000,000
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Ordinance No.3130-2020
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_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
CARES Act Administration & Non-Payroll Expenditures -
General Contingency 300,000
Individual Assistance Grants -
General Contingency 900,832
City Resiliency and Recovery
General Contingency 1,000,000
$7,700,832
Section 7. That the limitation of transferring less than $5,000 within each department in KMC
7.25.020 is waived to allow the City Manager to allocate funds to the correct accounts as
expenditures arise. Further, the limitation in KMC 7.25.020 to move less than $5,000 between
departments is increased to $20,000 with transfers of more than $20,000 requiring a resolution
by the City Council.
Section 8. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 9. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of May, 2020.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Approved by Finance: _________________
Introduced: May 20, 2020
Enacted: May 20, 2020
Effective: May 20, 2020
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