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HomeMy WebLinkAboutResolution No. 2020-54)(? Sponsored by : Administration Kt;NAI CITY OF KENAI RESOLUTION NO. 2020-54 A RESOLUTION OF THE CITY OF KENAI, ALASKA, AMENDING THE CITY'S GRANT DISBURSEMENT PROGRAM FOR SMALL BUSINESSES AND NON-PROFIT ORGANIZATIONS UTILIZING FUNDS FROM THE CORONAVIRUS AID , RELIEF, AND ECONOMIC SECURITY (CARES) ACT. WHEREAS, on May 20, 2020, the City Council enacted Ordinance 3130-2020 accepting Federal CARES Act funding passed through the State of Alaska for expenditures in response to the COVID-19 Public Health Emergency; and, WHEREAS, on June 3, 2020, the City Council passed Resolution 2020-39 , approving a $3,000 ,000 Grant Disbursement Program for Small Businesses and Non-Profit Organizations Utilizing Funds from the CARES Act; and, WHEREAS , during Council discussion of Resolution 2020-39, the Council modified the attached Grant D isbursement Program by directing administration that any funds left over after all el igible business and non-profit applicants are paid would be shared on a prorated basis among the eligible business applicants ; and , WHEREAS, the application period for the Grant Disbursement Program was open for two weeks, June 5, 2020 to June 19, 2020; and, WHEREAS , the City rece ived 186 applications, has approved 155 applications; 4 7 of which were non-profits and 108 were businesses , with 31 applications either under further review as of June 24, 2020, or that were denied ; and, WHEREAS, re-opening the application period for the Grant Disbursement Program from July 10 , 2020 to July 17 , 2020 will allow additional businesses and non-profits impacted by the COVID-19 public health emergency to seek relief without materially affecting available future funding ; and , WHEREAS , the total disbursement of funds to applicants is an ti cipated to be appro xim ately $1,900,000 , which , under the current guidance leaves approximately $1 , 100,000 in funds that would be prorated to businesses that applied during this application period ; and , WHEREAS , to assure that the distribution of these remaining funds meets the Federal Department of Treasury guidance for the permissible uses of CARES Act funds, and to provide opportunity for businesses that may have not applied for grant funds durin g the first applic ation period, the administration recommends that the remaining funds of approxi mately $1 , 100,000 be distributed through a second grant program to businesses only that may be similar in form to the first Grant Disbursement Program ; and , Resolut ion No. 202 0-54 Page 2 of 2 W HE REAS, due to the continued impacts to businesses or the possibility of future mandated closures of businesses due to the COVID-19 public health emergency, the administration also recommends that these remaining funds be distributed later in 2020 , depending on how the COVID -19 publ ic health emergency unfolds as we con t inue through the summe r and into the fall. NOW, THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA : Section 1. That the City's current Grant Disbursement Program is amended to re-open the application period for businesses and non-profits from July 10, 2020 to July 17, 2020 . Section 2. That the City's Grant Disbursement Program is amended so t hat the remaining funds from the first grant program be distributed through a second grant program to businesses only that may be similar in form to the first Grant Disbursement Program and that the funds be distributed later in 2020. Section 3. That the program timing and guidelines will be provided to Council for their consideration prior to initiation of the program. Section 4. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st day of July, 2020. BRIAN GABRIEL, SR., MAYOR ATTEST: City of Kenai I 210 !=idalgo Av e, Kenai, AK 99611-7794 1907.283.7535 I www.kenai.ci!y MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Gabriel and Council Members Paul Ostrander, City Manager June 24 , 2020 Resolution 2020-54 -Amending the City's Grant Disbursement Program On May 20, 2020 the City Council enacted Ordinance 3130-2020 accepting Federal CARES Act funding passed through the State of Alaska for expenditures in response to the COVID-19 Public Health Emergency. On June 3, 2020 the City Council passed Resolution 2020-39, approving a $3 ,000,000 Grant Disbursement Program for Small Businesses and Non-Profit Organizations Utilizing Funds from the CARES Act. The City is nearing completion of that grant program and there is approx imately $1 .1 million in remaining funds that will not go to applicants. The current program directs the administration that any funds left over after all eligible business and non-profit applicants are paid shall be shared on a prorated basis among the eligible business applicants . The amount of remaining funds is greater than what was anticipated when the Grant Disbursement Program was designed and administration is recommending an alternative approach to proration to current business applicants . This Resolution amends the Grant D isbursement Program so that the rema ining funds fro m the first grant program be distributed through a second grant program to bus inesses only that may be sim ilar in form to the first Grant Disbursement Program and that those funds be distributed later in 2020. This assures that the distribution of these remaining funds meets the Federal Department of Treasury guidance for permissible uses of CARES Act funds and also prov ides an opportunity for businesses that did not apply during the first program to ha ve another opportunity to apply. Delaying the grant opportunity to later in the year will allow the City to react appropriately as the COVID-19 Public Health Emergency unfolds ove r the next several months. Th is Resolution also prov ides that the program guidelines and timeline will be pro vided to Coun ci l for consideration prior to initiation of the program . You consideration is appreciated. City of Kenai I 2 10 l=idalgo A ve, Kenai , AK 99611-77941907.283.7535 I www.kenai.c ity MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Gabriel and Council Members Paul Ostrander, City Manager July 1, 2020 Laydown Amendment Memo for Resolution 2020-54 This memorandum requests Council move the amendments below to re-open the application period for businesses and non-profits for CARES Act grant funding. The City has received several late applications and is concerned that there are other businesses and nonprofits that failed to timely apply. Re-opening the application period is consistent with the intent of providing relief to businesses and non-profits impacted by COVID-19. Add a new 5th WHEAREAS to read: WHEREAS, re-opening the application period for the Grant Disbursement Program from July 10, 2020 to July 17, 2020 will allow additional businesses and non-profits impacted by the COVID-19 public health emergency to seek relief without materially affecting available future funding ; and, Add a new Section 1 to read : Section 1. That the City's current Grant Disbursement Program is amended to re-open the appl ication period for business and non-profits from July 10, 2020 to July 17, 2020 . Renumber following sections sequentially .