HomeMy WebLinkAboutOrdinance No. 2159-2006Suggested by: Councilor Swarner
CITY OF KENAI
ORDINANCE NO. 2159-2006
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ENACTING
KMC '7.40 TITLED "GRANT ADMINISTRATION," WHICH ADOPTS PROCEDURES FOR
THE ADMINISTRATION OF GRANTS BY THE CITY OF KENAI.
WHEREAS, the City of Kenai does not currently have a set of rules and procedures
regarding the administration of grants: and,
WHEREAS, loss or liability to the City of Kenai from grant administration may occur
from administrative costs, loss of interest income, ineligible expenditures, and a
grantee's failure to perform; and,
WHEREAS, adopting standard grant administration procedures can reduce the loss or
liability to the city for grant administration; and,
WHEREAS, it is in the best interest of the City of Kenai to adopt KMC 7.40.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that KMC 7.40 is adopted as shown on Attachment A.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3=d day of May,
2006.
~~(-~.~
PAT PORTER, MAYOR
ATTEST:
~~~~~~
Carol L. Freas, City Clerk
Introduced: April 19, 2006
Adopted: May 3, 2006
Effective: June 3, 2006
7.40 GRANT ADMINISTRATION
7.40.010 Purpose.
(a) The purpose of this chapCer is to set forth the procedures fox handling pass-through grants,
which are govemed by AS 37.05.315. Tlie procedures are designed to minimize any liability or
loss to the city which may arise from adminisYering said grants, while at the same time
maximizing the amount of said grant funds going Yo the ~urposes of the grants.
(b) Loss or liability may arise out of the following: admiiustrative costs, Ioss of interest income,
ineligible expenditures, and the granYee's failure to perform. Most administrative costs ean be
determined soon after the completion of consYruction ar of the grant project. Ineligible
expeiiditurES can be determined only after a sYaYe audit. A grantee's failure to perfonn can only
be determined after a term equal to the practical life of the facility constructed with the grant
funds.
7340.020 Definitions.
(a) "Administrative costs" means the costs to the city of administering the ~rant.
~ ~ (b) "GranY' means all grants to or administered by the city, to include without limitarion, a state
grant governed by AS 37.05315, other state grants, federal grants or other grants; provided,
however, fhe term "granY' excludes all grants for which the recipient or administering agency is
prohibited by law from reTaining or taking an administration fee.
(c} "Grant agreement" means the contract document, including but nof limited to rules,
regulations and laws, pertaining to the grant between the city and the grantee.
7.24.030 General provisions.
(a) The city council may authorize flle mayor or eity manager to enYer into grant agreements with
grantees which set forth fhe terms and conditions of the grant and its administration.
(b) The grant agreement with a grantee shall set Forth all terms and conditions for administering
the grant including but not limited to scope of work, payment and process schedule, State of
Alaska Municipal Grant Agreement, and such security devices as are deemed reasonable by the
city manager.
(c) Grant funds are not to be disbursed uniil the city and grantee have entered into a grant
agreement.
Ordinance No. 2159-2006 Page 1 of 2
Attachment A
7.40.040 Grant admiuistration fee schedule.
(a) To achninister ~ants, unless the Councii determines it is otherwise appropriate, the City shall
retain fees from the grant funds computed as follows:
Grant Amount Base Amount % Fee
$ 0 - $ 10,000.00 $ 0 +10% $
$ 10,001.00 - $ 50,000.00 $ 1,000.00 + 8% over $ 10,000.00
$ 50,001.00 - $100,000.00 $ 4,200.00 + 6% over $ 50,000.00
$100,001.00 - $150,000.00 $7,200.00 +4%over $100,000.00
$150,001.00 - $200,000.00 $ 9,200.00 + 2% over $150,000.00
$200,001.00 - Upward $10,200.00 +l/2%over $200,000.00
(b) If the City Manager detennines that administration of a specific grant will place extraordinary
burdens upon the City, a higher administrative fee may be charged with authorization of the City
Council if in compliance with the terms of the grant.
Ordinance No. 2159-2006 Page 2 of 2
Attachxnent A