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HomeMy WebLinkAboutRes2017-001Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2017-001 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING AN ADDITIONAL $32,080.91 TOWARD HARBOR FLOAT CONSTRUCTION REPRESENTING THE STATE OF ALASKA'S ADDITIONAL ADMINISTRATIVE FEE REQUIRED AFTER PROJECT START, AND APPROPRIATING FUNDS WHEREAS, the City of Seward, by Resolution 2015-072, approved accepting grant funds from the State of Alaska Facility Grant Program in the amount of $2,684,000; and WHEREAS, the signed grant agreement stipulated that the State's share of administrative fees (Indirect Cost Allocation Plan or ICRP) on the grant would be equivalent to 2% of the grant, but that the "grantor reserves the right to modify the department's ICAP rates as necessary"; and WHEREAS, during the project on October 1, 2015, the State unilaterally raised the ICAP to 3.34% for all reimbursements between October 1, 2015 and July 1, 2016, and again on July 1, 2016, raised the ICAP to 3.97% for all reimbursements subsequent to July 1, 2016; and WHEREAS, the Facility Grant Funding amount went from $2,684,000 to a reduced amount of $2,594,520; $53,680 was appropriated in Resolution 2015-075 to cover a portion of ICAP, leaving a remaining shortfall of $35,795.08; and WHEREAS, the City came in under budget on the project by $3,714.17 which, when applied to the required ICAP, leaves a remaining shortfall of $32,080.91 which will be appropriated from the same source of CPV funds as used to fund the City's share of the project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. Funding in the amount of $32,080.91 is hereby appropriated from Commercial Passenger Vessel Tax Fund no. 11113-0000-3071-11372 to the A, B, C and S -float Replacement Project infrastructure account no. 113 72 0000 8101 to cover the shortfall. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9h day of January, 2017. 1 CITY OF SEWARD, ALASKA RESOLUTION 2017-001 THE CITY OF SEWARD, ALASKA can Bardarson, Mayor AYES: Casagranda, Keil, McClure, Altermatt, Bardarson NOES: None ABSENT: Squires, Slater ABSTAIN: None ATTEST: J'dI L' m'��A'ftzd nna Ki , CMC Clerk (City Seal) Z, a � ♦ �'aM Kf t•`M 1 Agenda Statement Meeting Date: January 9, 2017 f To: City Council Through: Jim Hunt, City Manager ` From: Norman Regis, Harbormaster Agenda Item: Authorizing an additional amount of $32,080.91 toward the Harbor Float Construction project to cover the shortfall when the State raised the ICAP (Indirect Cost Allocation Plan) rate after the Grant Agreement was signed, and appropriating funds. BACKGROUND & JUSTIFICATION: In resolution 2014-057 Council approved the City Manager to submit a Municipal Harbor Facility Grant Application for the replacement of A, B, C, and S -float. In October 2014 DOT reported that the City's grant application scored the highest compared to other harbors. The funds approved were $2,6 84,000. On June 30th 2015, the Governor signed the 2016 Budget in which the City will receive these funds. In Resolution 2015-072 Council approved accepting grant funds in the amount of $2,684,000 and executing a grant agreement with the State of Alaska Department of Transportation, Harbor Facility Grant Program. When the project was established the ICAP (Indirect Cost Allocation Plan) rate was 2%, which was appropriated in Resolution 2015-075. The ICAP rate increased to 3.34% on October 1 st 2015, and again the ICAP rate increased to 3.97% on 7-1-16. The City did not expect to incur those additional deductions in funding. The City's portion of the matching grant came from the Harbor Maintenance Repair and Replacement Fund, Capital Repair and Replacement fees and CPV funds. The Harbor carne in under Budget on the project with $3,714.17 remaining; these funds will be applied to the shortfall of $35,795.08 leaving $32,080.91 left to fund. Additional funding in the amount of $32,080.91 is needed to pay for this project, the funds will come from CPV Fund No. 11113-0000-3071-11372 and appropriated to the A,B,C and S -float replacement project fund 1 1372 0000 8 10 1. INTENT: Appropriate $32,080.91 from CPV Fund 11113-0000-3071-11372 to the A, B, C and S -float replacement project fund 11372-0000-8101 to cover the shortfall from the State deducting additional ICAP funds from the Facility Grant Program. FISCAL NOTE: Funding in the amount of $32,080.91 will be appropriated from CPV Fund 11113-0000-3071- 11372 to the A, B, C and S -float replacement project fund 11372-0000-8101. Approved by Finance Department: wW l , ( t I ATTORNEY REVIEW: Yes No X RECOMMENDATION: Council support Resolution 2017- 001 authorizing the appropriations of funds from the CPV fund 11113-0000-3071-11372 to the A, B, C, and S -float replacement fund 11372-0000- 8101to cover the shortfall from the State raising the ICRP rate.