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HomeMy WebLinkAboutOrdinance No. 3266-2022______________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3266-2022 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING FUNDS IN THE AIRPORT FUND, AND ACCEPTING TWO GRANTS FROM THE FEDERAL AVIATION ADMINISTRATION UNDER THE AMERICAN RESCUE PLAN ACT OF 2021 (H.R. 1319, PUBLIC LAW 117-2). WHEREAS, on March 11, 2021, the American Rescue Plan Act of 2021 was signed into law by the President which includes $8 billion in funds to be awarded as economic assistance to eligible U.S. airports to prevent, prepare for, and respond to the coronavirus disease 2019 (COVID-19) pandemic; and, WHEREAS, to distribute these funds, the FAA has established the Airport Rescue Grants; and WHEREAS, on December 14, 2021, the Kenai Municipal Airport received the Airport Rescue Grant Offer, Grant No. 3-02-0142-070-2022, in the amount of $1,719,887 for costs related to operations, personnel, cleaning, sanitization, janitorial services, combating the spread of pathogens at the airport, and debt service payments; and, WHEREAS, on _____, the Kenai Municipal Airport received the Airport Rescue Grant Offer, Grant No. 3-02-0142-_____-2022, in the amount of $_____ to provide relief from rent and minimum annual guarantees to eligible in-terminal airport concessions; and, WHEREAS, keeping the Airport in reliable, safe operation is in the best interest of the City; and, WHEREAS, the executed grant, Grant No. 3-02-0142-070-2022, followed by the city attorney’s certification must be completed no later than January 30, 2022; and, WHEREAS, the executed grant, Grant No. 3-02-0142-_____-2022, followed by the city attorney’s certification must be completed no later than _____. 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 accept Grant No. 3-02-0142-070-2022 in the amount of $1,719,887 for costs related to operations, personnel, cleaning, sanitization, janitorial services, combating the spread of pathogens at the airport, and debt service payments, and Grant No. 3-02-0142-_____-2022 in the amount of $_____ for eligible in-terminal airport concessions relief. Section 2. That the estimated revenues and appropriations be increased as follows: AMENDED BY SUBSTITUTION Ordinance No. 3266-2022 Page 2 of 2 ______________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Airport Fund: Increase Estimated Revenues - Federal Grants $__ ___ Increase Appropriations – Administration: Contingency $1,719,887 Grants to other Agencies XX,XXX $X,XXX,XXX Section 3. That the City Manager is authorized to accept grant funding totaling $_____ from the Federal Aviation Administration and to execute grant agreements and to expend grant funds to fulfill the purpose and intent of this ordinance. 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 19th day of January, 2022. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Finance: _____________ Introduced: January 5, 2022 Enacted: January 19, 2022 Effective: January 19, 2022 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Eland Conway II, Airport Manager DATE: December 22, 2021 SUBJECT: Ordinance No. 3266-2022 – Kenai Airport ARP Act Grant, Accepting and Appropriating Airport Funds Air travel remains well below pre-pandemic levels (ENA enplanements ↓30% compared to 2019)— airport concessionaires, and the aviation industry as a whole continue to suffer from the many economic consequences of the COVID-19 pandemic. These funds are critical to sustaining the operation of the airport, regulatory compliance, and acceptable service levels. Airport concessionaires are struggling or unable to meet the terms of their lease(s). On December 14, 2021, the Kenai Municipal Airport (ENA) received Airport Rescue Grant Offer, Grant No. 3-02-0142-070-2022, from the Federal Aviation Administration for funds under the American Rescue Plan Act: $1,719,887 – Funds may be used for costs related to operations, personnel, cleaning, sanitization, janitorial services, combating the spread of pathogens at the airport, and debt service payments. ENA is anticipating a second Airport Rescue Grant Offer, Grant No. 3-02-0142-___-2022, from the Federal Aviation Administration—before the January 12, 2022 deadline allowing a substitute to this ordinance to be advertised—in the amount of $81,591. These funds provide relief from rent and minimum annual guarantees to eligible in-terminal airport concessions. Ordinance 3266-2022 provides legislative action designating authority for acceptance and appropriation of grant funds. Thank you for your consideration.