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
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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
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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
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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.