Loading...
HomeMy WebLinkAboutOrdinance No. 3177-2021KENAI CITY OF KENAI ORDINANCE NO. 3177-2021 Sponsored by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A SHOP LOCAL ECONOMIC STIMULUS PROGRAM TO BENEFIT KENAI SMALL BUSINESSES AND AWARD OF A PROFESSIONAL SERVICES AGREEMENT TO THE KENAI CHAMBER OF COMMERCE AND VISITOR CENTER FOR ADMINISTRATION OF THE PROGRAM. WHEREAS, the COVID-19 Public Health Emergency has had a significant effect on local business; and, WHEREAS, local businesses are the lifeblood of the Kenai economy providing jobs to residents and sales taxes used to provide essential public services like public safety, street maintenance, parks & recreation, senior services, etc.; and, WHEREAS, creation of a buy local promotion will encourage shopping at Kenai businesses at a critical time in the community's recovery from the COVID-19 Public Health Emergency; and, WHEREAS, the City has worked directly with the Kenai Chamber of Commerce and Visitor Center on a project to create a Shop Local program which will provide economic relief and stimulus to local businesses and incentivize local spending in the months following the holiday season; and, WHEREAS, the Kenai Chamber of Commerce and Visitor Center is uniquely qualified to administer the program because of its relationship with and advocacy for Kenai businesses; and, WHEREAS, the success of the City is dependent upon the success of the local economy and its businesses and a program to reward local shopping, promote Kenai businesses, and continue the community's recovery from the COVID-19 Public Health Emergency is in the best interest of the City and its residents. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the City Manager is authorized to establish a Shop Local Economic Stimulus Program in the amount of $350,000. Section 2. That the City Manager is authorized to execute a professional service agreement with the Kenai Chamber of Commerce for administration of the program for a total cost not to exceed $15,000 including up to $10,000 to promote the program and up to $5,000 for program administration and support. Ordinance No. 3177-2021 Page 2 of 2 Section 3. That the estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues — Appropriation of Fund Balance $QO Increase Appropriations — Non -Departmental Professional Services Grants to Others $ 15,000 335.000 $ 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 201 day of January, 2021. ATTEST: Jamie Heinz, CMC, City Clerk Approved by Finance: /.Z- ";Z� 4 - SR., MAYOR Introduced: Enacted: Effective: New Text Underlined; [DELETED TEXT BRACKETED] January 6, 2021 January 20, 2021 January 20, 2021 KENAI City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-77941907.283.7535 1 wwwIenaixity MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Terry Eubank, Acting City Manager DATE: December 21, 2020 SUBJECT: Ordinance 3177-2021 — Shop Local Economic Stimulus Program to Benefit Kenai Small Business The Administration has worked with the Kenai Chamber of Commerce and Visitor Center to develop a Shop Local program ("Shop Here All Year in Kenai") to provide economic relief and stimulus to Kenai small businesses as well as assistance for residents purchasing required goods and services by incentivizing local purchases. Patrons who spend $200 at Kenai businesses will qualify for a $100 coupon to be used at businesses participating in the program. The program will provide economic support during a usually slow time of year and during this critical time of recovery from the COVID-19 Public Health Emergency. The program would run between February 1 and March 1, 2021, when residents and businesses may benefit from the program the most. The Administration recommends entering into an Agreement with the Kenai Chamber of Commerce and Visitor Center to administer the program for $115,000. This amount includes $100,000 as a direct incentive to shoppers and $15,000 for actual administrative costs, including a marketing campaign, supplies and materials, and administrative costs. Ordinance 3177-2021 would authorize the City Manager to enter into an Agreement with the Kenai Chamber of Commerce and Visitor Center for the Shop Local program. Your consideration is appreciated KENAI City of Kenai 1 210 FiJalgo Ave. Kenai, AK 99611-7794 1 907.283.7535 I www.6nai.city MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Henry Knackstedt, City Council Member DATE: January 12, 2021 SUBJECT: Ordinance 3177-2021 — Amendment to Service Provider's Proposal and Increasing the Appropriation to the Program After reviewing the initial "Shop Here All Year" program proposal provided by the Kenai Chamber of Commerce and Visitors Center (KCCVC), I was concerned that the requirement that participants spend a minimum of $200 to be eligible to receive a $100 voucher would be limiting for some individuals within our community who may not have $200 to spend on discretionary items. I asked administration to determine if the KCCVC would be able to modify the program to provide an additional tier of eligibility whereby a participant could spend $100 on allowable discretionary purchases and be eligible to receive a $50 voucher. Administration confirmed with the KCCVC that this tier could be added without additional cost to the City. I move that Council direct administration to work with the KCCVC to add a second tier of eligibility to the Shop Here All Year program to allow participants who spend $100 on allowable discretionary purchases be eligible to receive a $50 voucher. I have a second motion that I would like Council to consider: I would move to add $50,000 to the program by amending the Ordinance as follows: Under Section 1, change $100,000 to $150,000. Under Section 3, increase the Appropriation of Fund Balance from $115,000 to $165,000, increase Grants to Others from $100,000 to $150,000, and increase the total appropriation from $115,000 to $165,000. Adding $50,000 will ensure that there are sufficient funds available to accommodate the demand for vouchers until the Council meeting of February 17, 2021. Depending on the level of interest, the ease of administration, and the positive impacts of the program on our local businesses, the Council may want to consider at that meeting if additional funding is appropriate and needed. As we move forward through February and into the spring, Council must also consider other programs that could provide effective support to those businesses that have been hit hardest by the pandemic, to assure that all of them survive the economic impacts of COVID-19. Council is tasked with making well -reasoned and responsible decisions on how best to utilize the City's limited funds for the greatest benefit to both our business community and our residents. Your consideration is appreciated. Page 2 of 2 KC The City of Kenai ( www.kenaixity KENAI _.., _...enai 1 210 Fidalgo Ave. Kenai. AK 99611-7794 1907 283 7535 1 www.laenai.city MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Victoria Askin, City Council Member DATE: January 14, 2021 SUBJECT: Ordinance 3177-2021 — Amendment to Service Provider's Proposal Based on the purpose of the "Shop Here All Year" program proposal provided by the Kenai Chamber of Commerce and Visitors Center, to encourage and motivate local spending at Kenai businesses, I followed up with administration to ask if a raffle could be added as a part of the program to further incentivize participation. Participants would be entered into a raffle for a chance to win vouchers from a participating business in the amount of $500, $300, and $200. Administration confirmed with the Kenai Chamber that this proposed amendment to the program to include a raffle would not increase the administrative costs of the program and would be allowed under the Kenai Chamber's gaming permit. 1 move that Council direct administration to work with the Kenai Chamber of Commerce and Visitors Center to add a raffle to the Shop Here All Year program to allow participants to be automatically entered into a raffle for a chance to win a $500, $300, and $200 voucher from a participating business. Based on the additional cost of the proposed program, I would include a second motion for Council's consideration: 1 would move to add $1,000 to the program by amending the Ordinance as follows: Under Section 1, change $100,000 to $101,000. Under Section 3, increase the Appropriation of Fund Balance from $115,000 to $116,000, increase Grants to Others from $100,000 to $101,000, and increase the total appropriation from $115,000 to $116,000. Your consideration is appreciated CITY OF KENAI AGREEMENT BETWEEN OWNER AND SERVICE PROVIDER FOR KENAI SHOP LOCAL ECONOMIC STIMULUS PROGRAM TO BENEFIT KENAI SMALL BUSINESS MABUFFY473i7121 BETWEEN the OWNER: DAY OF AND the SERVICE PROVIDER: FOR the PROJECT: 2021. CITY OF KENAI 210 Fidalgo Avenue Kenai, Alaska 99611 Kenai Chamber of Commerce and Visitor Center, Inc. 11471 Kenai Spur Highway Kenai, AK 99611 Kenai Shop Local Economic Stimulus Program to Benefit Kenai Small Business The Owner and Service Provider agree as set forth below. ARTICLE 1 THE WORK The Service Provider shall perform all the work described in the Proposed Kenai Shop Local Program as Attachment "A" hereto, including but not limited to: 1. Basic Services, as described in the Program Description. ARTICLE 2 TIME OF COMMENCEMENT AND COMPLETION The Service Provider's performance of services required by this AGREEMENT shall commence on February 1, 2021 (date) and terminate on April 30, 2021. ARTICLE 3 COMPENSATION The Owner shall compensate the Service Provider for actual administrative as follows: Administrative Costs not to exceed $15,000 including up to $10,000 to promote the program and up to $5,000 for program administration and support. And fund the program through the Service Provider for direct incentive to shoppers up to $335,000 ARTICLE 4 Professional Services Agreement Last Revised January 2014 ENUMERATION OF CONTRACT DOCUMENTS The documents which are specifically incorporated into this AGREEMENT by reference and form the contract documents are listed below. Should any provision or requirement of one portion of the contract documents conflict with any other portion of the contract documents, unless otherwise provided herein, the conflict will be resolved by reference to the contract documents in the following order of priority: A. Any and all later modifications, Change Orders, and written interpretations of the Contract Documents issued by the Owner B. This AGREEMENT C. The Service Provider's Proposal, including Cost Proposal Any other attachments to this AGREEMENT do not form a part of the AGREEMENT but are for reference or proof of compliance with the requirements of the AGREEMENT, except where the provisions of this AGREEMENT provide such attachments will be or are a part of the AGREEMENT. These form the contract and what is required by any of the documents shall be as binding as if required by all. The intention of the contract documents is to require the furnishing of all labor, material, equipment, and other items necessary for the proper execution and completion of the program and to prescribe the terms and conditions of the contract and payment, so as to include work and materials which may be necessary to produce the intended results. ARTICLE 5 INSURANCE A. Service Provider shall, at Service Providers own expense, secure and maintain the following insurance: comprehensive general liability insurance, including premises, all operations, property damage, personal injury and death, broad -form contractual coverage with a per occurrence limit of not less than $1,000,000 combined single limit; workers compensation insurance with coverage for all employees engaged in work under this Agreement as required by AS 23.30.045 (Service Provider is responsible for workers compensation insurance for any subService Provider who directly or indirectly provides services under the Agreement); and, iii. comprehensive automobile liability insurance covering all owned, hired, and non -owned vehicles with coverage limits not less than $1,000,000 combined single limit per occurrence. Where specific limits are stated, the limits are the minimum acceptable limits. If Service Provider's insurance policy contains higher limits, Owner is entitled to coverage to the extent of the higher limits. B. All insurance required by this Section shall meet the following additional requirements: for comprehensive general liability and automobile liability insurance, name the City of Kenai as an additional insured; ii. for worker's compensation insurance, general liability, and automobile liability insurance, where possible, include a waiver of subrogation so that the insurer waives all rights of subrogation against the City of Kenai for payments made under the policy; iii. provide Owner with at least 30 days' notice before any termination, cancellation, or material change in insurance coverage is effective; and, Professional Services Agreement Last Revised January 2014 iv. be issued by a company/corporation currently rated "A-" or better by A.M. Best. C. Service Provider shall submit to Owner proof of insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. The effective date of the insurance will be no later than the first day of the term of this Agreement. D. The indemnification and insurance coverage requirements stated in this Section and in Section 6 below do not relieve Service Provider of any other obligation under this Agreement. Owner may increase the amount or revise the type of required insurance upon written demand without requiring amendments to this Agreement. Owner will base any increase or revision upon reasonable and justifiable grounds. Within two weeks of the written demand, Service Provider shall submit to Owner evidence of insurance coverage that meets the requirements of Owner. ARTICLE 6 Indemnity, Defend, and Hold Harmless Service Provider shall indemnify, defend, and hold harmless Owner and its agents, employees, and/or insurers from claim, loss, damage, liability, including injury and death or expense in any way related to any act or omission of Service Provider or Service Provider's employees, agents, or invitees arising out of Service Provider's performance of services under this Agreement, except to the extent any negligence of Owner or its employees or agents is a proximate cause of any injury or damage. If a third party asserts a claim against Service Provider and Owner, Service Provider and Owner shall seek in good faith to achieve Agreement to an apportionment of fault as between them without an independent of litigation. This provision shall survive expiration or termination of this Agreement. ARTICLE 7 All legal notices relating to this contract, including change of address, shall be mailed to the Owner and the Service Provider at the following addresses: OWNER SERVICE PROVIDER City of Kenai Kenai Chamber of Commerce 210 Fidalgo Ave and Visitor Center, Inc. Kenai, Alaska 99611 11471 Kenai Spur Highway Kenai, Alaska 99611 ARTICLE 6 EXTENT OF AGREEMENT This AGREEMENT represents the entire and integrated AGREEMENT between the Owner and the Service Provider, and supersedes all prior, inconsistent negotiations, representations, or AGREEMENTS, either written or oral. This AGREEMENT may be amended only by written instrument signed by both Owner and Service Provider. IN WITNESS WHEREOF, the parties have caused this AGREEMENT to be executed in their respective names by their duly authorized representatives as of the date and year above written. ARTICLE 9 ATTACHMENTS Professional Services Agreement Last Revised January 2014 In the event there is any difference between an attachment to the original of this AGREEMENT on file with the City of Kenai and any attachment to a duplicate original of the AGREEMENT, the attachments to the original filed with the City shall control. ARTICLE 10 JURISDICTION: CHOICE OF LAW This contract shall be governed by the laws of the State of Alaska, and any lawsuit brought thereon shall be filed in the Third Judicial District at Kenai, Alaska. OWNER and SERVICE PROVIDER each binds themselves, their partners, successors, assigns and legal representatives in respect to all covenants, AGREEMENTS and obligations contained in the Contract Documents. IN WITNESS WHEREOF, the parties have caused this AGREEMENT to be executed in their respective names or by their duly authorized representatives as of the date and year above written. OWNER: CITY OF KENAI By: Paul Ostrander City Manager STATE OF ALASKA ) )ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this. day of , 2021 Paul Ostrander, City Manager, City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. NOTARY PUBLIC FOR ALASKA My Commission Expires: Approved by Legal: _ Approved by Finance: SERVICE PROVIDER: By: _ Name: Title: STATE OF ALASKA ) )ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2021 ,(title) Of being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said corporation. NOTARY PUBLIC FOR ALASKA My Commission Expires: Professional Services Agreement Last Revised January 2014 Kenai Shop Local Program: Shop Here All Year in Kenai Budget: $350,000 Purpose: To encourage and motivate local spending at Kenai businesses Dates: February 1 —April 1, 2021 Program Description: By shopping and spending $100 on discretionary items in Kenai, individuals will receive one (1) $50 voucher of their choice to spend at local participating businesses. Individuals who spend $200 (or more) will receive one (1) $100 voucher of their choice to spend. Vouchers will be issued on a first-come, first -serve basis, concluding on April 1, or when funds run out. Vouchers must be spent by April 30, 2021. Definitions: • Discretionary purchases in this program include, but are not limited to: Clothing, furniture, tools, sporting goods, art, jewelry, massage, haircuts, restaurants, cafes, bars & distilleries, museums, books, flowers, and collectibles. • Non -Discretionary purchases are not eligible under this program, and include, but are not limited to: Groceries, fuel, utilities, vehicles, mortgage or rent, firewood, medical bills, or prescriptions. Participant Rules: • Individuals must submit up to 10 receipts totaling at least $200 via an online form or bring them into the Kenai Chamber of Commerce. • Submitted receipts must be from a business located within the Kenai City limits. • Receipts must be readable and itemized. The date, name of the business, and the full total must be included. Receipts must be dated between February 1, 2021 and April 1, 2021. • Taxes, tips, delivery fees, and shipping are not eligible for the purchase total. • After submitting receipts, individuals choose a participating businesses they would like to receive a $100 shopping voucher from by selecting them from the available list. If there is any problem validating your receipts, you will be contacted by email and asked to clarify or submit additional receipts to reach $200. • Vouchers will be mailed to the address provided within two — four business days of receiving the submitted form or receipts. Individuals may also choose to pick up their vouchers in person. Participating Business Rules: • Voucher merchants must be located within the Kenai City limits. • The business must have been in existence with a valid State of Alaska business license as of January 1, 2021. • Must be current in sales tax registration with the Kenai Peninsula Borough and not be delinquent with the Kenai Peninsula Borough Tax Department. • Must not be a national chain or a C corporation traded on the U.S. stock exchange. Individually owned -and -operated local franchise are eligible. Additional Details: • Payments for awarded vouchers will be made weekly to participating businesses. • New businesses will be able to sign up on to the program at any time, provided they meet the criteria.