HomeMy WebLinkAboutResolution No. 2020-70JC Sponsored by: Administration
K~NAI
CITY OF KENAI
RESOLUTION NO. 2020-70
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 AND AUTHORIZING THE CITY MANAGER TO ENTER
INTO AGREEMENTS WITH ALASKA HOUSING FINANCE CORPORATION (AHFC) FOR
HOUSING RELIEF PROGRAM ADMINISTRATION AND WITH THE KENAI PENINSULA FOOD
BANK FOR FOOD DISTRIBUTION IN KENAI.
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, on July 1, 2020 , the Council amended the Grant Disbursement Program to re-open
the application period from July 10, 2020 to July 17, 2020 to 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, on July 1, 2020, the Council also amended the Grant Disbursement Program to
establish additional grant programs to provide individual financial assistance to the community's
smaller businesses that did not qualify for the City's Small Business Grant program , for
commercial fisheries permit holders , for renters and homeowners, mental health services , and a
program to assist the business community with professional marketing support in light of
decreased customer demand; and ,
WHEREAS , the total disbursement of funds available through the Grant Disbursement Program
and avai lable to el igible applicants for grants is anticipated to increase by $2 ,675,524.94 as a
result of a grant in that amount from t he Federal Government passed through the Kenai Peninsula
Borough for expenditures in response to and recovery from the COVID-19 public health
emergency; 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 fo r City of Kenai businesses to be eligible for grants equal to the size of grants offered
by the Kenai Peninsula Borough to businesses located outside of City limits as well as provide
additional opportunity for those businesses that may have not applied for grant funds during the
Resolution No. 2020-70
Page 2 of 3
first application period, the administration recommends that the remaining funds allocated to the
Business and Nonprofit Entity Recovery Grants program be distributed through a second grant
program (Round 2) to businesses similar in form to the first Grant Disbursement Program (Round
1 ); and,
WHEREAS, the Alaska Housing Finance Corporation (AHFC) administered the A laska
Housing Relief Program earlier this summer, which provided up to $1,200 for each eligible
household to assist with housing costs, payable directly to their lender or landlord; and ,
WHEREAS, approximately 80 households in the City of Kenai qualified and took adva ntage
of this statewide funding; and,
WHEREAS , AHFC has agreed to continue administering the housing relief program for Kenai
residents, via a sub-recipient grant agreement and using CARES Acts funds granted to the
City; and ,
WHEREAS, the Kenai Peninsula Food Bank has agreed to purchase and distribute food
boxes at sites in the City of Kenai weekly from September through December to families
experiencing financial strain due to the COVID-19 public health emergency via a sub-recipient
grant agreement and using CARES Acts funds granted to the City; and,
WHEREAS, this use of these funds providing grants and services to residents experiencing
economic hardship or housing insecurity follows CARES Act requirements as interpreted by
U.S. Department of the Treasury's guidance for local governments , which allows for
necessary expenditures incurred due to the COVID-19 public health emergency and for
second order effects of the emergency; and,
WHEREAS , due to the continued impacts to businesses and res idents or the poss i bility of fu t ure
manda ted closures of businesses due to the COVID-19 public health emergency, it is in the best
in terests of the City to amend the City 's grant disbursement program for small businesses and
non-profit organ izations utilizing funds from the CARES Act as referenced in the Updated
Program Guide (Attachment A) and authorize the City Manager to enter into agreements with
AHFC for housing relief program administration and with the Kenai Peninsula Food Bank fo r food
distribution in Kenai.
NOW , THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA :
Sect ion 1. That the Grant Disbursement Program for Small Businesses and Non-Profit
Organizations Uti lizing Funds from the Coronavi rus Aid, Relief, and Economic Security (CARES )
Act is app roved as referenced in the Updated Program Guide (Attachment A) or modified in si milar
form .
Section 2. That the Ci ty Manage r is authorized to enter into agreements with AHFC for
housing relief prog ram administration and with the Kenai Peninsula Food Bank for food
d istribu t ion in Kenai.
Resolution No. 2020-70
Page 3 of 3
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 2nd day of September, 2020.
BRIAN GABRIEL, SR., MAYOR
ATTEST:
MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Paul Ostrander, City Manager
DATE: August 26, 2020
SUBJECT: Resolution 2020-70 – Amending the City’s Grant Disbursement
Program
Administration originally presented the City’s CARES Act grant programs to City Council for
approval on June 3. Since then, the program has been amended to allow additional businesses
and nonprofits to apply and any remaining funds from the first grant program be distributed
through a second grant program to businesses. The program was also expanded to include
individual assistance grant programs to provide individual financial assistance to the community’s
smaller businesses that did not qualify for the City’s Small Business Grant program, for
commercial fishers, and programs to assist residents in need of mental health services and
provide small business development and marketing services.
An update on the total expenditures as of August 26, 2020 related to the City’s Relief and
Recovery Grant Program is included as Attachment B. To date, the City has received a total of
223 applications for all of the grant programs with 181 eligible grant applications for the Small
Business and Nonprofit grants (Round 1). The application period for the $1,000 Smaller Business,
Commercial Fisheries, and Small Business Marketing Services grants closes on August 31. To
date, the City has received a total of 18 eligible Commercial Fisheries permit holder grant
applications, 14 eligible Smaller Business grant applications, and 10 Marketing Services grant
applications.
At its August 11, 2020 special meeting, the Kenai Peninsula Borough authorized CARES Act
pass-through grants to the incorporated cities of the Borough. Ordinance 3158-2020 authorizes
acceptance of grant and appropriates $2,675,524.94 to assist in response to and recovery from
the COVID-19 public health emergency. Administration has worked with the Borough to determine
how these funds may be used as part of the City’s Relief and Recovery Grant Program, with the
majority of the funds being allocated to grants to qualifying City of Kenai businesses so that the
total of the two rounds of City grants equals the size of the individual grants offered by the Kenai
Peninsula Borough to borough businesses located outside of City limits.
Resolution 2020-70 amends the City’s Relief and Recovery Grant Program to add a Round 2
grant disbursement program to small businesses and authorizes two additional individual
assistance programs for Rental and Housing Assistance and Food Assistance Services. These
Page 2 of 2
programs would be administered under grant agreements with the Kenai Peninsula Food Bank
and Alaska Housing Finance Corporation (AHFC). An update on the total budget and allocations
as a result of Resolution 2020-70 is included as Attachment C.
The grant program guidelines are included in the City of Kenai’s Relief and Recovery Grant
Program Guide included as attachment A to Resolution 2020-70.
Your consideration is appreciated.
Attachments
Establishing City of Kenai COVID-19
Relief and Recovery Grant Programs
CITY OF KENAI
CITY HALL
210 FIDALGO AVENUE
KENAI, AK 99611
PAUL OSTRANDER
CITY MANAGER
POSTRANDER@KENAI.CITY
907.283.8222
LARRY PERSILY
PROJECT LEAD
LPERSILY@KENAI.CITY
907.283.8226
Revised September 2, 2020
DRAFT
Attachment A
01
02
03
07
09
Contents
Introduction
Overview
Small Businesses
Nonprofits
Individual Assistance
13Conclusion
The Kenai City Council on May 20 approved an
approach to distributing CARES Act funds
received by the City- identifying broad
categories, governmental, private, and nonprofit
- to help provide economic relief due to the
public health emergency. The Administration
focused on developing the grant programs
outlined in this document to provide meaningful
impact in the community in an expeditious
manner.
Along with myself, the team included Project
Lead Larry Persily (hired as a temporary
employee for this effort), Finance Director Terry
Eubank, City Attorney Scott Bloom, and
Assistant to City Manager Christine
Cunningham. We considered a wide range of
programs and guidance along with the need for
timely relief support with as few restrictions as
possible to ensure relief funds can be spent as
needed, balanced with accountability, and a
simplified process that is in the best interests of
both the City and applicant.
I believe we have assessed the requirements
and needs of the City soundly, producing a set
of responsive programs to ensure we, as a City,
succeed in expending funds to best serve the
citizens of Kenai with responsible management.
Introduction
small
businesses in
Kenai*
410
We're
focused
on getting
relief funds
into the
community
we serve
individual
households
3,117
nonprofits
serving the
community
106
*Businesses with more than $50,000 in gross
revenues reported on 2019 sales tax returns
Overview
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 to aid in the economic recovery from the COVID-19 Public
Health Emergency. The City will also receive $2,675,524 from the Kenai Peninsula Borough, which is
distributing Federal funds it received from the State of Alaska to municipalities on the Peninsula, for a
total of $10,376,356 received by the City for COVID-19 response and economic recovery.
The Administration has evaluated an approach to distributing the economic recovery funds identifying
how to best support the long-term recovery of our local economy. This approach includes an allocation
plan for expenditure of these funds approved by City Council and designed to identify broad categories –
governmental, private, and nonprofit – where help is needed due to impacts associated with the COVID-
19 Public Health Emergency.
$4,175,524 – 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.
$5,000,000 – Business and Nonprofit Entity Recovery Grants. This allocation includes grant awards to
qualifying City of Kenai businesses or nonprofits affected by COVID-19 to offset impacts or to provide
mitigation. The City will administer grant programs to determine eligibility and requirements that may
apply. The grant program guidelines are included in this document.
$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 will include grants to to assist Kenai households
impacted by COVID-19. The City will administer the grant programs to determine eligibility restrictions
and requirements that may apply. The grant program guidelines are included in this document.
02
Small Business
Round 1 Small Business Grants
The grant categories for small businesses were
divided into four levels, based on each business’
2019 total gross sales for four quarters as reported
on their tax returns to the Borough:
Up to $2,500 for businesses with 2019
revenues of $50,000 to $100,000
Up to $5,000 for businesses with 2019
revenues of $100,000 to $250,000
Up to $7,500 for businesses with 2019
revenues of $250,000 to $500,000
Up to $10,000 for businesses with 2019
revenues of more than $500,000
This first round of small business grants
closed to applications on July 17, 2020. The
City Council directed that any funds left over after
all eligible business and nonprofit applicants are
paid shall be distributed through a second grant
program to businesses. (See Page 5)
A business must have been in existence as of
January 1, 2020, to qualify. That would not
exclude an existing business with a state license,
and that has previously filed tax returns with the
Borough even though it may have reported no
operations in January 2020 (such as a seasonal
business).
For purposes of determining eligibility for a new
business without a full year’s tax returns for 2019,
the City would take gross sales reported for any
quarters in 2019 or the first quarter 2020 and
03
extrapolate the numbers to estimate a full year’s
sales for the business.
Businesses that are not required to file sales tax
returns with the Borough must provide a copy of
their most recent federal income tax return or
other proof of revenues as deemed suitable by
the City review committee to determine the level
of grant award they might qualify to receive.
The business must be located within the City of
Kenai, with a valid state business license and be
current in its sales tax registration with the Kenai
Peninsula Borough. The business owner(s) does
not have to be a resident of the City of Kenai.
The program was open to all qualifying
businesses, regardless of whether they have
applied for or have obtained any other state or
federal COVID-19-related assistance.
The program excluded from eligibility:
C Corporations traded on a U.S. stock
exchange or a corporate-equivalent entity
traded on a foreign stock exchange, and
businesses owned in whole or majority-
owned by such a publicly traded
corporation
National chains that own and operate their
premises in Kenai; franchise owned-and-
operated businesses in Kenai would be
eligible
Businesses with a City lien or are in
violation of a payment agreement with the
City
Businesses with a Borough lien for unpaid
sales taxes. A sales tax delinquency would
not disqualify a business from the grant
program unless the borough has initiated a
lien on that debt. Businesses that have
entered into a payment plan with the
Borough and are adhering to that plan
would be eligible for the grant, so long as
the lien has been lifted
(continued on next page)
Small Business
Businesses currently in bankruptcy
proceedings
Businesses that lack a permanent
physical presence in the City for the sale
of goods or the provision of services, with
at least one worker assigned to that
facility
Marijuana businesses licensed under
Alaska Statute 17.38.
Businesses sharing physical quarters may each
apply and qualify for their own grant, so long as
each business has its own state license, files a
sales tax return under its own name and does
not share the same ownership with the other co-
located businesses.
Applicants were required to self-certify that they
have been affected by the COVID-19 public
health emergency and resulting economic
impacts. The intent of the federally funded
CARES Act program is to assist communities
and businesses that suffered economic harm
from the public health emergency. Impacts
could include, though are not limited to, loss of
sales due to mandatory shutdown, inventory
loss, additional operating expenses of reopening
and protecting staff and customers, including
funds already spent for those purposes.
Businesses were not required to detail
specifically (in dollars) how they were affected.
Business were asked how they might use the
money, making clear that the application
question is voluntary and for informational
purposes only to gauge community need and
effectiveness of the program.
04
Applicants were required to check a box that
states they intend to remain in business into
2021. The grant funds must be fully expended
by December 30, 2020.
The applicant must certify that the information
provided is true and accurate and that they
agree to assist in the verification of information
provided in the application and to provide
additional information to the City, if requested.
The application period was initially open for two
weeks, June 5 to June 19, 2020, and re-opened
from July 10 to July 17 to allow additional
businesses to apply.
The City review committee determined whether
the application was complete and the business
was eligible under the program requirements.
The committee did not judge the need or use of
the money.
An applicant denied by the review committee
may appeal to the City Manager (in writing).
Any appeal must be filed in writing by 5 p.m. the
10th calendar day after the day the applicant
received notice from the City.
It is the City’s intent, to the extent allowed by
law, that the review committee’s work and
discussions, and the applications themselves,
will not be available to the public. The names of
businesses that receive grants and the amount
each receives will be considered a public
record.
The City reserves the right to amend any
criteria or procedures as may be required if new
state or federal guidelines are issued.
(continued on next page)
Small Business
Round 2 Small Business Grants
The City is offering a second round of grants to
Kenai businesses that provides larger grant
amounts than Round 1, so that the total grant
funds available for each eligible business in the
City of Kenai is equal to the size of the grants
offered by the Kenai Peninsula Borough to
businesses located outside of City limits.
Round 2 also lowers the minimum revenues a
business needs to be eligible to receive a grant to
$20,000, consistent with the Borough's program.
Businesses that received grants in Round 1 of the
City program will need to reapply for Round 2 —
the application form will request additional
information. Also, businesses that did not apply in
Round 1 will be eligible to apply in Round 2 to
receive the maximum allowed under both
programs.
The City will begin accepting applications on
October 1 for Round 2 of its COVID-19 Relief and
Recovery Grant Program for businesses.
The Round 2 grant categories will be divided into
five levels based on each business' 2019 total
gross sales for four quarters as reported on their
tax returns to the Borough:
These amounts are in addition to the amount the
business was eligible to receive in Round 1.
Up to $750 for businesses with 2019
revenues of $20,000 to $50,000
Up to $1,000 for businesses with 2019
revenues of $50,000 to $100,000
Up to $3,750 for businesses with 2019
revenues of $100,000 to $250,000:
Up to $10,000 for businesses with 2019
revenues of $250,000 to $500,000
Up to $25,000 for businesses with 2019
revenues of over $500,000
NOTE: If the Borough grant levels are increased,
the City of Kenai grant levels will be increased to
match the Borough levels.
Similar to Round 1, a business must have been in
existence as of January 1, 2020, to qualify. That
would not exclude an existing business with a state
license, and that has previously filed tax returns
with the Borough even though it may have reported
no operations in January 2020 (such as a seasonal
business).
(continued on next page)
$20K - $50K
$50K - $100K
$100K - $250K
$250K - $500K
>$500K
Business
Revenues
The City of Kenai is matching the size of individual business
grants available for Borough businesses as follows:
Round 1 Grant
Amount
Total Grant
Amounts
Round 2 Grant
Amount
$3,550
$10,000
$25,000
$1,000 | $750 $1,750
$3,500
$8,750
$17,500
$35,000$10,000
$7,500
$5,000
$2,500 | $1,000
05
Small Business
For purposes of determining eligibility for a new
business without a full year’s tax returns for 2019,
the City would take gross sales reported for any
quarters in 2019 and the first quarter 2020 and
extrapolate the numbers to estimate a full year’s
sales for the business.
Businesses that are not required to file sales tax
returns with the Borough must provide a copy of
their most recent federal income tax return or
other proof of revenues as deemed suitable by
the City review committee to determine the level
of grant award they might qualify to receive.
The amount of the grant for businesses with
locations inside and outside the City will be based
solely on their revenues from the business
location within the City of Kenai.
The business must be located within the City of
Kenai, with a valid state business license and be
current in its sales tax registration with the Kenai
Peninsula Borough. That could be an office,
warehouse, shop or other premise owned, leased
or rented and operated by the applicant. The
business owner(s) does not have to be a resident
of the City of Kenai.
Businesses sharing physical quarters may each
apply and qualify for their own grant, so long as
each business has its own state license, files a
sales tax return under its own name and does not
share the same ownership with the other co-
located businesses. Such so-located businesses
under the same owner will be eligible for one
grant.
Businesses that have applied for or have obtained
any other state or federal COVID-19-related
assistance are not necessarily disqualified from
the City program.
06
The program will exclude from eligibility the same
list of businesses excluded in Round 1, including:
C Corporations traded on a U.S. stock
exchange or a corporate-equivalent entity
traded on a foreign stock exchange, and
businesses owned in whole or majority-
owned by such a publicly traded corporation
National chains that own and operate their
premises in Kenai; franchise owned-and-
operated businesses in Kenai would be
eligible
Businesses with a City lien or are in violation
of a payment agreement with the City
Businesses with a Borough lien for unpaid
sales taxes. A sales tax delinquency would
not disqualify a business from the grant
program unless the borough has initiated a
lien on that debt. Businesses that have
entered into a payment plan with the
Borough and are adhering to that plan would
be eligible for the grant, so long as the lien
has been lifted
Applicants will be required to certify that they have
been affected by the COVID-19 public health
emergency and resulting economic impacts.
Because the grants in Round 2 are significantly
larger than in Round 1, the City will ask for
additional information of applicants:
Additional information on economic hardship
suffered by the business, either lost revenue
or additional costs of operations.
Additional information on other similar
financial assistance received from the
Borough or other cities on the Kenai
Peninsula.
As with Round 1 grants, the funds in Round 2 must
be fully expended by December 30, 2020.
If the demand for grants in the second round
exceeds the City’s available funds, the City
reserves the right to prorate the grants to stay
within available funding.
Nonprofits
The grants for nonprofits were divided into three
levels to help meet the needs of repairing the
economic damage to nonprofits caused by the
COVID-19 public health emergency:
Up to $10,000 for nonprofits of less than
$50,000 in annual revenue
Up to $25,000 for nonprofits of between
$50,000 and $250,000 in annual revenue
Up to $50,000 for nonprofits of more than
$250,000 in annual revenue
This application period for nonprofit grants
closed on July 17, 2020.The initial application
period for grants was open for two weeks, June
5, 2020 to June 19, 2020, and the City Council
re-opened the application period from July 10,
2020 to July 17, 2020 to allow additional
nonprofits to apply that did not apply in the first
round.
Annual income was determined by the nonprofit’s
most recent IRS Form 990 from 2018 or 2019.
For those nonprofits that do not file with the IRS,
the City accepted an audited financial statement
or an unaudited statement by a third-party
preparer.
The program was open to nonprofits that provide
services to residents of the City, regardless of
where the nonprofit has its main office — though
the nonprofit must have a physical or service
presence within the City of Kenai — and
regardless of whether the local chapter or affiliate
is part of a larger statewide or national
organization.
Additional eligibility rules:
The grants were available only to IRS-
certified 501 nonprofits (the full list of IRS
501 nonprofit categories were on the
application)
The nonprofit must have been in operation
serving City of Kenai residents since at
least January 1, 2019
A majority of the group’s local board of
directors or local advisory board and its
officers must be Alaska residents. A local
affiliate of a national organization must
have a local advisory or governing board
Faith-based nonprofits are eligible, so long
as they provide services which are
promoted and available to the general
public without regard to religious affiliation
Nonprofit organizations “that are
principally engaged in teaching,
instructing, counseling, or indoctrinating
religion or religious beliefs, whether in a
religious or secular setting, or primarily
engaged in political or lobbying activities"
are not eligible (as per 13 CFR §
120.110(k) in the Code of Federal
Regulations)
The grant funds must be fully expended by
December 30, 2020.
The program was limited to nonprofits
economically damaged by the COVID-19 public
health emergency. The nonprofit was required
to certify and briefly describe how it and/or its
work has been affected, but was not required to
provide financial statements, budgets, receipts
or other records detailing the financial damages.
(continued on next page)
07
Nonprofits
The program was open to all qualifying
nonprofits, regardless of whether they applied
or obtained any other state or federal COVID-
19-related assistance.
Applicants were asked to provide a brief report
to the City no later than one year after receipt of
the grant funds, reviewing the use of the
money. This is voluntary and is requested to
assist the City in evaluating the impact of the
program.
A nonprofit cannot obtain a grant through the
City’s CARES Act-funded grant program for
nonprofits while also receiving a grant as a
small business, even if the nonprofit also
operates a business enterprise in Kenai.
The applicant needed to certify that the
information provided is true and accurate, and
they agree to assist in the verification of
information provided in the application and to
provide additional information to the City, if
requested.
The review committee determined whether the
application was complete and the nonprofit was
eligible under the program requirements. The
committee did not judge the need or use of the
money.
An applicant denied by the review committee
may appeal to the City Manager (in writing).
Any appeal must be filed in writing by 5 p.m. the
10th calendar day after the day the applicant
received notice from the City.
08
It is the City’s intent, to the extent allowed by
law, that the review committee’s work and
discussions, and the applications themselves,
will not be available to the public. The names of
businesses that receive grants and the amount
each receives will be considered a public
record.
The City reserves the right to amend any
criteria or procedures as may be required if new
state or federal guidelines are issued.
Individual Assistance
The City of Kenai has worked to establish
several grant programs to provide individual
financial assistance to the community’s smaller
businesses that did not qualify for Round 1 of
the City’s Small Business Grant program, for
commercial fishers, and for renters and
homeowners. The City continues to look into a
program to assist residents in need of mental
health services in the months ahead as the
emotional strains of the COVID-19 public
health emergency continue to weigh on the
community. It has also established a program
to assist the business community with
professional marketing support in light of
decreased customer demand.
The specifics of the programs are:
Individual Assistance to Small
Business
The program provides grants of $1,000 each to
small businesses with 2019 reported gross
revenues (as per sales tax records or other
acceptable forms of proof of revenues) of
between $25,000 and $50,000. The eligibility
requirements are similar to Round 1 of the
City's Small Business grant program that
provided funds for business with revenues
above $50,000 a year.
09
To qualify for the program, the smaller
business:
Must certify it was impacted by the
COVID-19 public health emergency.
Must be physically located in Kenai, with
a valid state business license showing a
Kenai address for the business (a home-
based business would be eligible).
Must not be in violation of a payment plan
on a debt to the City.
Must not be under a borough lien for
unpaid sales taxes.
Must not be in bankruptcy proceedings.
Businesses must have been in existence in
Kenai as of January 1, 2020, to qualify.
Applicants will be required to briefly describe
how the COVID-19 public health emergency
has affected their operations but will not be
required to provide detailed financial
information on lost revenues due to shutdowns
or additional expenses of reopening under
public health guidelines.
The application period opened Friday, July 10,
and will close at 5 p.m. Monday, August 31.
Applications may be submitted online at the
City website, by mail to City Hall or dropped off
at City Hall. The City intends to review the
applications and distribute the funds as quickly
as possible.
The City has set aside $150,000 for this
program, subject to demand.
NOTE: The Round 2 business grants opened
up the program to businesses with a minimum
of $20,000 in annual revenues. (See also p. 5)
(continued on next page)
Individual Assistance
Individual Assistance to Commercial
Fishers
The program will provide grants of $1,000 each to
Alaska Commercial Fisheries Entry Commission
permit holders who reside in the City of Kenai and
reported landings in 2019 with revenues of at least
$10,000.
The program is open to commercial fishing permit
holders but not crew members.
Applicants must certify their fishing income was
affected by the COVID-19 public health emergency
(such as lower prices due to reduced market
demand) and will be asked to briefly describe how
the public health emergency has affected their
operations but will not be required to provide
detailed financial information on lost revenues due
to shutdowns or decreased customer demand, or
additional expenses of operating under public
health guidelines.
The application period opened Friday, July 10, and
will close at 5 p.m. Monday, August 31.
Applications may be submitted online at the City
website, by mail to City Hall or dropped off at City
Hall. The City intends to review the applications
and distribute the funds as quickly as possible.
The City of Kenai has set aside $150,000 for this
program, subject to actual demand.
Rental and Mortgage Relief
The City of Kenai will execute a Memorandum of
Understanding with the Alaska Housing Finance
Corporation (AHFC) to extend for City of Kenai
residents by four months (September through
December) the rental assistance and mortgage
relief program the State funded for July.
10
Using a portion of the State's share of federal
CARES Act funds, AHFC provided up to $1,200
in rental assistance or mortgage relief for one
month for Alaska households.
The City of Kenai and several other
municipalities around the State contacted AHFC
to extend the assistance program at each city's
expense. Working with AHFC provides an
efficient and cost effective method to handle the
online applications, income verification and
payment distribution, rather than the City of
Kenai setting up its own operation. In addition,
AHFC has agreed to handle the work at no cost
to the City. The City of Kenai will reimburse
AHFC only for the actual rental assistance and
mortgage relief payments it sends out each
month on behalf of eligible Kenai residents to
their landlords or mortgage holders.
The payments can only go toward rent or a
mortgage payment, at a maximum $1,200 per
household per month. The program has a
household income cap, and the maximum
household income in Kenai to qualify for the
program is $71,760 a year. The application will
ask residents to verify their loss of income due to
the COVID-19 public health emergency and to
verify the information to remain eligible each
month.
Applicants to this summer's AHFC program will
be notified to apply for the City-funded
assistance program, and the City will publicize
the CARES Act assistance to ensure that
anyone who did not apply for the AHFC
payments in July has the opportunity to apply for
the City's four-month program.
The City has set aside $400,000 for this
program, subject to available funding and
demand.
(continued on next page)
Individual Assistance
Mental Health Services
The City continues to look into contracting with
mental health professionals in Kenai to provide
counseling for individual residents affected by the
COVID-19 public health emergency and in need
of mental health services. The program would
cover a resident’s out-of-pocket expenses after
any insurance or if they lack insurance coverage
for the services. There would be no income limit
for participating in the program.
If the City determines this program is feasible, it
will announce the service provider after a
procurement process and will publicize the
availability of the service to the public. The intent
is that the City would issue a contract for an
amount not to exceed $50,000 for mental health
counseling services, with individuals limited to no
more than six counseling sessions to ensure that
as many people as possible can participate.
The contractor would bill the City for its services at
a fixed hourly rate without identifying the
individuals, only the total number of hours in a
billing cycle. The identity of individuals would be
held confidential by the service provider, the same
as any other doctor-patient relationship.
Individuals would inquire about the services and
make appointments directly with the mental health
provider; the City would not be involved in
anything more than payments to the provider.
The service would be provided prior to December
30, 2020, subject available funding and demand.
The City expects to have the program available to
the public in September.
11
Small Business Development/
Marketing Services
The City of Kenai has contracted with a
marketing service provider to assist local
businesses that reported gross revenues of at
least $10,000 in 2019 (as per sales tax records
or other acceptable forms of proof of revenues)
in their marketing, social media and online
presence, as businesses focus on repairing the
economic damage suffered during the COVID-
19-related shutdown and restructuring their
business to operate under the new rules of
commerce and social activity.
The City issued a contract for an amount not to
exceed $50,000 to provide a $1,000 credit to
each eligible business in Kenai that can be
used with the marketing service provider.
The eligibility requirements are similar to the
City Small Business Grant and Individual
Assistance for Small Business programs. The
business must certify it was impacted by the
COVID-19 public health emergency and be
physically located in Kenai. Once the business
has been approved for the program, the
marketing service provider will provide an
assessment and customize marketing services
for each participating business limited to $1,000
in services covered by the City funding.
The application period opened August 13, and
will close at 5 p.m. on November 6. Applications
may be submitted online at the City website, by
mail to or dropped off at City Hall. The City
intends to review the applications and distribute
the funds as quickly as possible.
The service would be provided prior to
December 30, 2020, subject available funding
and demand.
(Continued on next page)
Individual Assistance
Food Assistance Services
The City would issue a grant to the Kenai
Peninsula Food Bank to purchase and distribute
food boxes at sites in the City of Kenai weekly for
September through December. The grant would
require the organization to distribute 150 food
boxes a week for 16 weeks to City of Kenai
residents, comparable to the number of
households that have participated in recent food
distribution events organized by the Food Bank
and one of its volunteer partners in the City of
Kenai. Strong demand at those events and at
partner food pantry sites in the community
indicates a substantial need for food assistance
for many Kenai households. The program would
assist Kenai families experiencing financial strain
due to the COVID-19 public health emergency in
the months ahead.
The $65,000 grant would ensure an assortment of
healthy foods each week, delivered to convenient
locations in the City for easy pickup by City of
Kenai residents. To the extent that other foods are
available from federal surplus programs, those
items would be added to the City of Kenai
distribution at no additional cost to the City.
The City and the Food Bank would actively
publicize this temporary assistance program to
ensure maximum participation by City of Kenai
residents who need the assistance.
The service would be provided prior to December
30, 2020, subject available funding and demand.
The City expects to have the program available to
the public by early September.
12
Conclusion
The City of Kenai will administer the grant programs without incurring the additional cost of an outside
group or foundation to screen, process or assist in administration of the grant program, except for
programs in with the City contracts with a service provider for individual assistance programs.
In order to reach the small businesses and nonprofit organizations and individuals in the City that may
be eligible, a successful community outreach strategy is necessary. This strategy will include the
following:
Press Releases to local media
Direct mail to small businesses, nonprofits, permit holders or other groups
Coordination with the Kenai Peninsula Economic Development District (KPEDD), Kenai Chamber
of Commerce and Visitor Center (KCCVC), and Small Business Development Center (SBDC)
Social Media posts
Information about the programs as well as application forms, FAQs, a summary of the program and
application process, and timetable will be provided on the City's website at www.kenai.city as well as a
direct contact email and phone number for inquiries.
13
Budget Actual FY20 Actual FY21
Total
Expenditures Available
3,500,000.00$ 2,005,476.77$ 458,413.14$ 2,463,889.91$ 1,036,110.09$
3,000,000.00 1,905,000.00 310,000.00 2,215,000.00 785,000.00
300,000.00 134,425.31 16,486.32 150,911.63 149,088.37
Small Business ($150,000)150,000.00 - 14,000.00 14,000.00 136,000.00
Commerical Fishers ($150,000)150,000.00 - 21,000.00 21,000.00 129,000.00
Rental and Mortgage Relief ($150,000)150,000.00 - - - 150,000.00
Mental Health Services ($50,000)50,000.00 - - - 50,000.00
Small Business Marketing Services ($50,000)50,000.00 - - - 50,000.00
Unassigned 350,832.00 - - - 350,832.00
Total Individual Assistance Grants 900,832.00 - 35,000.00 35,000.00 865,832.00
7,700,832.00$ 4,044,902.08$ 819,899.46$ 4,864,801.54$ 2,836,030.46$ Total All
City of Kenai COVID-19 CARES Act
Relief and Recovery Grant Programs
Program Update
Attachment B
August 26, 2020
First Responder and Incident Management Team
Payroll
Business and Nonprofit Entity Recovery Grants
CARES Act Administration & Non-Payroll
Individual Assistance Grants
Current Budget
Budget After
Ord. 3158-2020/
Reso. 2020-70 Actual FY20 Actual FY21
Total
Expenditures
Available After
Ord. 3158-2020/
Reso. 2020-70
3,500,000.00$ 4,175,524.00$ 2,005,476.77$ 458,413.14$ 2,463,889.91$ 1,711,634.09$
Round 1: Small Business and Nonprofit Grants 3,000,000.00 2,215,000.00 1,905,000.00 310,000.00 2,215,000.00 -
Round 2: Small Business Grants - 2,785,000.00 - - - 2,785,000.00
Total Business and Nonprofit Entity Recovery 3,000,000.00 5,000,000.00 1,905,000.00 310,000.00 2,215,000.00 2,785,000.00
300,000.00 300,000.00 134,425.31 16,486.32 150,911.63 149,088.37
Small Business 150,000.00 150,000.00 - 14,000.00 14,000.00 136,000.00
Commerical Fishers 150,000.00 150,000.00 - 21,000.00 21,000.00 129,000.00
Rental and Mortgage Relief 150,000.00 400,000.00 - - - 400,000.00
Mental Health Services 50,000.00 50,000.00 - - - 50,000.00
Small Business Marketing Services 50,000.00 50,000.00 - - - 50,000.00
Food Assistance Services - 65,000.00 - - - 65,000.00
Unassigned 350,832.00 35,832.00 - - - 35,832.00
Total Individual Assistance Grants 900,832.00 900,832.00 - 35,000.00 35,000.00 865,832.00
7,700,832.00$ 10,376,356.00$ 4,044,902.08$ 819,899.46$ 4,864,801.54$ 5,511,554.46$
City of Kenai COVID-19 CARES Act
Relief and Recovery Grant Programs
Ordinance 3158-2020 & Resolution 2020-70
Proposed Program Amendments
Attachment C
Total All
August 26, 2020
First Responder and Incident Management Team
Payroll
Business and Nonprofit Entity Recovery Grants
CARES Act Administration & Non-Payroll
Individual Assistance Grants