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HomeMy WebLinkAboutOrdinance No. 3191-2021Sponsored by: Mayor Gabriel CITY OF KENAI ORDINANCE NO. 3191-2021 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND TO PROVIDE ASSISTANCE TO INDIVIDUALS IMPACTED BY THE COVID-19 PUBLIC HEALTH EMERGENCY WITH THE PURCHASE OF GROCERIES AND NECESSARY HOUSEHOLD GOODS IN KENAI AND AWARD A PROFESSIONAL SERVICE AGREEMENT TO THE KENAI CHAMBER OF COMMERCE AND VISITORS CENTER FOR ADMINISTRATION OF THE PROGRAM. WHEREAS, the COVID-19 Public Health Emergency has significantly impacted many individuals through lost income and or increased expenses; and, WHEREAS, the Kenai Peninsula Food Bank of Alaska reports that before the Public Health Emergency, it distributed food to approximately 60 people from its Kenai food distribution site, and during this Public Health Emergency, distribution peaked at about 275 food boxes per week and continues to serve around 200 a week in Kenai; and, WHEREAS, the Food Bank further provides that it can distribute 300 food boxes in Kenai, when available, in less than an hour and that its meal program at the Food Bank, which serves Kenai residents and others, served around 30 to 40 meals a day previously, but now consistently serves over twice that, peaking at around 200 meals per day; and, WHEREAS, other data similarly shows an increase in financial hardship for individuals, with more individuals behind on City water and sewer accounts now than prior to the Public Health Emergency and Homer Electric Association reports that it has a number of members in Kenai and other areas that have signed SB-241 Agreements indicating they are experiencing financial hardship due to the Public Health Emergency; and, WHEREAS, while the City, in response to the Public Health Emergency, has previously provided funding to the Food Bank for free food distribution programs, through Alaska Housing Finance Corporation (AHFC) for mortgage and rental assistance, direct funding through Relief and Recovery grants to local businesses and nonprofits, and a Shop Local program encouraging shopping at small businesses selling discretionary items, this program is specifically intended to help impacted individuals double the amount of food or necessary household goods they are able to purchase in Kenai to secure more groceries and necessary household items; and, WHEREAS, the program may help many of the same individuals assisted by other City programs, and even some of the same businesses, but will also assist many residents not previously assisted by the City through its Public Health Emergency response; and, WHEREAS, the program will be funded up to $200,000 plus an administrative fee and be administered by the Kenai Chamber of Commerce and Visitor Center, Inc. and will provide Ordinance No. 3191-2021 Page 3 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] vouchers to local participating retail businesses selling groceries and necessary household goods in increments of $100 up to a total of $200 per individual who self certifies that they have been financially impacted by COVID-19 and who turns in receipts for groceries or necessary household goods up to $200 from Kenai retail businesses in the months of March and April; and, WHEREAS, in 2020, the City distributed CARES Act funds from the Federal Government passed through the State of Alaska in response to and to aid in the recovery from the COVID-19 Public Health Emergency and allocated funds to support a number of programs identified to best provide needed aid; and, WHEREAS, because initial federal CARES Act guidance required funds to be spent prior to December 31, 2020, or be returned to the Federal Treasury, some of the CARES Act funds originally allocated for other purposes but unspent late in 2020 was used by the City just prior to the deadline as allowed by the Act, for first responder payroll; and, WHEREAS, these funds remain available in the General Fund if further assistance is necessary to support individuals and businesses that continue to be impacted by the COVID-19 pandemic; and, WHEREAS, the funding for this program can be attributed to some of the CARES Act funds the City had originally allocated to use for direct assistance to businesses, nonprofits, individuals, and Kenai residents; and, WHEREAS, the City continues to identify a need to provide economic recovery from the COVID- 19 Public Health Emergency, and this program meets an identified need and is in the best interests of the City. 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 program up to $200,000 to provide individuals who self-certify that they have been financially impacted by the COVID-19 Public Health Emergency, vouchers in $100 increments up to $200, to use at local retail establishments selling groceries or necessary household goods, upon submission of receipts from similar retail establishments on a dollar for dollar basis. Section 2. That the City Manager is authorized to execute a professional service agreement with the Kenai Chamber of Commerce and Visitor Center, Inc. for administration of the program for a total cost not to exceed $15,000 including up to $5,000 to promote the program and up to $10,000 for program administrative support. Section 3. That estimated revenues and appropriation be increased as follows: General Fund: Increase Estimated Revenues – Appropriation of Fund Balance $215,000 Increase Appropriations – Non-Departmental Professional Services $ 15,000 Ordinance No. 3191-2021 Page 3 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Grants to Others 200,000 $215,000 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 17th day of February, 2021. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Approved by Finance: _________ Introduced: February 3, 2021 Enacted: February 17, 2021 Effective: February 17, 2021 MEMORANDUM TO: Council Members FROM: Mayor Gabriel DATE: January 28, 2021 SUBJECT: Ordinance 3191-2021 Grocery and Necessary Household Goods Ordinance 3191-2021 is intended to help Kenai residents impacted by the COVID-19 Public Health Emergency stretch their dollars at local grocery retailers for groceries and other necessary household goods. The program provides residents who self-certify that they have been financially impacted by the COVID-19 Public Health Emergency up to $200 in vouchers in increments of $100 at local grocery retailers for residents who spend $100 or $200 at local grocery retailers and provide receipts. The program is funded at $200,000, which would allow 1,000 residents to participate if individuals provided $200 in receipts each, and more if some provide $100. While the funds for this program would come from the General Fund, they can be traced back to CARES Act funding. Because initial federal CARES Act guidance required funds to be spent prior to December 31, 2020, or be returned to the Federal Treasury, some of the CARES Act funds originally allocated for other purposes but unspent late in 2020 were used by the City just prior to the deadline as allowed by the Act, for first responder payroll. These funds remain available in the General Fund if further assistance is necessary to support residents and businesses that continue to be impacted by the COVID-19 pandemic. While the City has already provided funding to the Food Bank for free food distribution programs, through Alaska Housing Finance Corporation for mortgage and rental assistance, direct funding through Relief and Recovery grants to local businesses and nonprofits, and a Shop Local program encouraging shopping at small businesses selling discretionary items, this program, administered through the Kenai Chamber of Commerce and Visitor Center directly benefits Kenai residents impacted by the Public Health Emergency double their money for groceries and necessary household goods. Data from the Food Bank, City Water and Sewer Fund, and HEA indicate there is a need for this program in the community. While the primary effect is to help families and individuals, this program will have a secondary effect of helping local grocery retailers by encouraging shopping for groceries and necessary household items in Kenai. The program is designed to be open to all businesses in Kenai selling groceries that are agreeable to participating in a voucher program with the City and Chamber to enable residents flexibility in their preferred shopping. In order to ease administration of the program, receipts and vouchers will not be limited to specific Page 2 of 2 purchases, but instead the participating stores that sell the groceries and necessary household items. Your consideration is appreciated. Kenai Grocery and Necessary Household Goods Program Budget: $200,000 Purpose: To help individuals financially impacted by the COVID-19 Public Health Emergency double their money for the purchase of groceries and necessary household goods Dates: March 1 – April 30, 2021 Program Description: Individuals who self-certify that they have been financially impacted by the COVID-19 Public Health Emergency will receive vouchers in increments of $100, up to $200, after providing receipts from stores selling groceries and necessary household goods. Vouchers will be issued on a first-come, first-serve basis, concluding on April 30, or when funds run out. Vouchers must be spent by May 31, 2021. Vouchers will be issued to a Kenai store selling groceries and necessary household items of the individual’s choice that are participating in the program and located in Kenai. Definitions: • Stores Selling Grocery and Necessary Household Items include Kenai Walmart, Kenai Safeway, IGA, Three Bears, Maggie’s General Store, and convenience stores. Financially impacted by the COVID-19 Public Health Emergency means, a person has lost income, or experienced increased personal expenses due to impacts from the COVID-19 public Health Emergency. 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 and Visitor Center. • Submitted receipts must be from a store selling grocery and necessary household items located within the Kenai City limits. The receipts must be accompanied by a self- certification form certifying that the individual submitting receipts has been financially impacted by the COVID-19 Public Health Emergency. • Receipts must be readable. The date, name of the business, and the full total must be included. Receipts must be dated between March 1, 2021 and April 30, 2021. • Online orders do not qualify for expenditures. • After submitting receipts, individuals choose a participating store selling grocery and necessary household items they would like to receive up to two $100 shopping voucher(s) 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 the $100 or $200 increment. • 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. • SNAP and WIC benefits are excluded as eligible payments. • Tobacco and liquor are not eligible purchases. Participating Business Rules: • Voucher merchants must be a store selling groceries and necessary household items 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. Additional Details: • Payments for vouchers submitted by participating businesses to the Kenai Chamber of Commerce and Visitors Center 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. Professional Services Agreement Last Revised January 2014 CITY OF KENAI AGREEMENT BETWEEN OWNER AND SERVICE PROVIDER FOR KENAI GROCERY AND NECESSARY HOUSEHOLD GOODS PROGRAM TO BENEFIT KENAI RESIDENTS MADE AS OF THE ______ DAY OF _______________________ 2021. BETWEEN the OWNER: CITY OF KENAI 210 Fidalgo Avenue Kenai, Alaska 99611 AND the SERVICE PROVIDER: Kenai Chamber of Commerce and Visitor Center, Inc. 11471 Kenai Spur Highway Kenai, AK 99611 FOR the PROJECT: Grocery and Necessary Household Goods Voucher Program 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 Grocery and Necessary Household Goods 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 March 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 $5,000 to promote the program and up to $10,000 for program administration and support. And fund the program through the Service Provider for up to $200,000 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 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 Provider’s own expense, secure and maintain the following insurance: i. 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; ii. worker's 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 worker's 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: i. 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 8 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: _________ GROCERY AND NECESSARY HOUSEHOLD GOODS VOUCHER PROGRAM Name: Physical Address: City: Kenai State: AK Zip: 99611 Optional Mailing Address: If you would like vouchers mailed to you City: State: AK Zip: Phone: Email: Optional Optional Have your personal finances been impacted by the COVID-19 public health emergency? ☐ Yes ☐ No (Impacts could include, but are not limited to, loss of income from wages, loss of work or increased household expenses (purchases of personal protective equipment, at home school supplies, etc.) Signature Date MEMORANDUM TO: Council Members FROM: Mayor Gabriel DATE: February 11, 2021 SUBJECT: Ordinance 3191 - 2021 After further communications with the Kenai Chamber related to this program, the Chamber has indicated it needs more funding to administer the program and less to advertise. The Chamber has proposed $10,000 to run the program, and $5,000 to promote the program. This appears reasonable given the program design. The following amendments are required: Amend Section 2. Of the Ordinance to read: Section 2. That the City Manager is authorized to execute a professional service agreement with the Kenai Chamber of Commerce and Visitor Center, Inc. for administration of the program for a total cost not to exceed $15,000 including up to $5,000 to promote the program and up to $10,000 for program administrative support. Amend the Agreement with the Chamber by Amending Article 3 to read: 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 $5,000 to promote the program and up to $10,000 for program administration and support. And fund the program through the Service Provider for up to $200,000 Your consideration is appreciated.