HomeMy WebLinkAboutOrdinance No. 3204-2021KENAI
CITY OF KENAI
ORDINANCE NO. 3204-2021
Sponsored by: Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND TO PROVIDE
FUNDING FOR APPROVED SMALL BUSINESS GRANTS IN EXCESS OF BUDGETED
AMOUNTS FOR THE GRANT DISBURSEMENT PROGRAM FOR SMALL BUSINESSES THAT
DID NOT PREVIOUSLY APPLY FOR FULL ASSISTANCE FROM THE CITY IN 2020.
WHEREAS, on April 9, 2020, President Donald J. Trump approved a Disaster Declaration for the
State of Alaska; and,
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 with an application period of June 4, 2020 to June 19, 2020;
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 pandemic to seek relief without materially affecting available
future funding; and,
WHEREAS, on September 2, 2020, the Council amended the Grant Disbursement Program to
provide a second round of grants, with an application period of October 1, 2020 to October 30,
2020 that increased the amount available to City of Kenai businesses so that the total of the City
grants equaled the size of the business grants offered by the Kenai Peninsula Borough to borough
businesses located outside of the City limits; and,
WHEREAS, Administration reached out to numerous businesses that did not apply during one or
all of the grant application periods to determine why they did not apply, with the primary reasons
given being that their business was faring well at the time, they felt the funds should go to other
businesses that had a greater need, and in some cases missing the opportunity to apply; and,
WHEREAS, the magnitude and length of the COVID-19 pandemic is still unknown, and its
associated negative impacts to our economy are still creating uncertainty for local businesses;
and,
Ordinance No. 3204-2021
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WHEREAS, on February 17, 2021, the Council enacted Ordinance No. 3190-2021 approving a
grant disbursement program for small businesses that did not previously apply for full assistance
from the City in 2020 benefiting businesses that previously did not have a need, or missed the
grant opportunities for some other reason and appropriated $200,000 to fund the program; and,
WHEREAS, the application period for the program opened on February 22, 2021 and closed
March 22, 2021 with the City receiving 16 total applications and approving 11 for a payment total
of $233,250, exceeding the amount appropriated for the program by $33,250; and,
WHEREAS, pursuant to KMC 1.15.70(d) the City may introduce and finally pass on the same day,
an ordinance making, repealing, transferring or otherwise changing an appropriation; and,
WHEREAS, introduction and passage of this ordinance ensures payment to all of the eligible
businesses is not unnecessarily delayed and the grant funds can be utilized as quickly as possible
to offset impacts to these businesses due to the COVID-19 pandemic; and,
WHEREAS, the success of the City is dependent upon the success of the local economy and its
businesses, and increasing the appropriation by $33,250 to provide full grant funding for all
eligible businesses that applied 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 estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues —
Appropriation of Fund Balance $33.250
Increase Appropriations — Non -Departmental
Grants to Others $33,250
Section 2. 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 3. 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 7"' day of April, 2021
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BRIAN GABRIEL SR., MAYOR
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Ordinance No. 3204-2021
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ATTEST:
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Approved by Finance:
Clerk
$00 Introduced: April 7, 2021
Enacted: April 7, 2021
Effective: April 7, 2021
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KENAI
_._, _- . ,enai 1210 Fida6 Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenaixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Paul Ostrander, City Manager
DATE: March 24, 2021
SUBJECT: Ordinance 3204-2021 — Providing Funding for Approved Small
Business Grants in Excess of Budgeted Amounts for the Grant
Opportunity for Businesses that Did Not Previously Apply for Full
Assistance in 2020
The purpose of the memo is to recommend introduction and adoption of Ordinance 3204-2021 at
the April 7, 2021 meeting of the Kenai City Council
Introduction and Adoption in a Sinale Msetina.
Generally, Ordinances are introduced at one meeting and voted on at the subsequent meeting to
provide public notice of the action at two separate meetings. KMC 1.15.070(d), as cited below,
provides for introduction and passage of appropriating ordinances in a single meeting.
KMC 1.15.070(d)
No ordinance, except an emergency ordinance or an ordinance making, repealing, transferring,
or otherwise changing appropriations, may be finally passed on the same day that it is introduced.
By unanimous consent of all Council Members present, such ordinances may be read a second
time and then, by the required vote, be passed on the same day on which they are introduced. All
persons present shall be given an opportunity to be heard before the vote on final passage.
Since COVID-19 began impacting the daily lives of our residents in March of 2020, the
administration has worked diligently to identify areas of need in the community and recommend
ways in which the City could help meet those needs. When Federal CARES Act funding was
made available through the State, and later, when additional funding was provided through the
Kenai Peninsula Borough, it was clear that utilizing a portion of these funds to support our
business community was going to be essential to offset the negative economic impacts of the
pandemic.
City Council approved a first round of grants that included small businesses and non-profit entities
for the period of June 4-19, 2020, and re -opened the first round for an additional period of July
10-17,2020. Council then authorized a second round of grants for small businesses for the period
of October 1-30, 2020. Depending on the business' total gross sales, Kenai businesses were
eligible for up to $35,000 in grants from the City through these programs.
On February 17, 2021, the Council enacted Ordinance No. 3190-2021 approving a grant
disbursement program for small businesses that did not previously apply for full assistance from
the City in 2020, benefiting businesses that previously did not have a need or missed the grant
opportunities for some other reason and appropriated $200,000 to fund the program. The
application period for the program opened on February 22, 2021 and closed March 22, 2021, with
the City receiving 16 total applications and approving 11 for a payment total of $233,250,
exceeding the amount appropriated for the program by $33,250.
Ordinance 3204-2021 appropriates an additional $33,250 to provide full grant funding for all
eligible businesses that applied. Introduction and adoption of this ordinance is being requested
so that payment to these eligible businesses is not unnecessarily delayed and the grant funds
can be utilized as quickly as possible to offset impacts to these businesses due to the COVID-19
pandemic.
As a reminder, grant amounts under this program are not in excess of what other City businesses
received or what was offered to Kenai Peninsula Borough businesses outside of the City limits.
Your consideration is appreciated.
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