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HomeMy WebLinkAboutOrdinance No. 3172-2020011 jC-_ KENAI CITY OF KENAI ORDINANCE NO. 3172-2020 Sponsored by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, WAIVING THE $5,000 LIMITATION IN KMC 7.25.020 (A) FOR ALLOCATING CARES ACT FUNDS TO ALLOW THE CITY MANAGER TO ALLOCATE THE FUNDS TO THE PROPER ACCOUNT AS NEEDS ARISE AND TIME TO UTILIZE THE FUNDS EXPIRES, AND DECLARING AN EMERGENCY. 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, in response to the COVID-19 pandemic, on March 18, 2020, the City Manager declared a local disaster emergency that was extended the same day by the City Council; and, WHEREAS, emergency declarations on the state and local level have been extended through at least December 31, 2020; and, WHEREAS, the City has received federal funding through the CARES Act to help offset impacts from COVID-19 to our local community; and, WHEREAS, the City Council has approved funding and allocated CARES Act funds to help offset impacts from COVID-19 to meet food and shelter needs, assist businesses and nonprofits, provide mental health services, and cover payroll for incident managers and first responders; and, WHEREAS, one of the limitations of the CARES Act funding under current federal guidance is that it must be utilized by December 31, 2020; 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, the City Manager needs increased authority beyond the previously authorized authority of $20,000 approved by Ordinance 3130-2020 to allocate CARES Act funds between Council approved programs as the December 31, 2020 deadline for expenditure of CARES Act funds draws nearer, and some programs need further funding while others are less utilized; and, WHEREAS, increasing the City Manager's authority will provide the flexibility to ensure CARES Act funds are fully utilized to maximum benefit for the City of Kenai and its residents, businesses and nonprofits; and, WHEREAS, pursuant to KMC 1.15.70(f) an emergency ordinance may go into effect immediately upon passage; and, Ordinance No.3172-2020 Page 2 of 2 WHEREAS, state law and City Charter allow for emergency ordinances when necessary to preserve public, peace health and safety and this Ordinance is needed to ensure maximum CARES Act resources are available to meet the needs of City Residents, business, non -profits, incident management and first responders. 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 public health emergency 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 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 $100,000 with transfers of more than $100,000 requiring a resolution by the City Council. This authorization will terminate upon final reporting of the City's currently appropriated CARES Act funds to the State of Alaska. Section 4. 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 5. 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 16' day of December, 2020. BRIAN SR., MAYOR ATTEST: Heinz, CMC, City Clerr, v 1dJh U: Introduced: December 2, 2020 O •'•.., ••..•• " Enacted: December 16, 2020 DEp X10 Effective: December 16, 2020 New Text Underlined; [DELETED TEXT BRACKETED] �v k�av K I N A I City of Kenai 1 210 Fidalgo Ave, Kenai. AK 99611-7794 1907.283.7535 1 www1enaixity MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Paul Ostrander, City Manager DATE: November 24, 2020 SUBJECT: Ordinance No. 3172-2020 — Waiving the $5000 Fund Transfer Limit As we near the deadline of December 31, 2020 for the expenditure of CARES Act funds, administration is closely tracking the utilization of the funds in the various accounts that have been authorized by Council. Any funds that are not expended by December 31, 2020 must be returned to the granting agency. There is still uncertainty regarding the amount of funds that will be needed in several of the accounts, including the AHFC program providing rental and mortgage relief, the PCHS Mental Health Services Program, and the CARES Act Administration and Non -Payroll account. Additionally, administration estimates that an additional $94,000 would need to be allocated to the First Responder and Incident Management Team Payroll to fully cover those costs through the end of 2020. The authority to re -allocate these funds is necessary to facilitate transfers that likely will exceed $20,000 between accounts during the last several weeks of 2020 to assure that all of the CARES Act funds are utilized appropriately and to the maximum benefit of the City. Your consideration is appreciated.