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HomeMy WebLinkAboutRes2019-002 Sponsored by: Bridges CITY OF SEWARD,ALASKA RESOLUTION 2019-002 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, INSTRUCTING THE CITY MANAGER TO EXERCISE HIS AUTHORITY UNDER SCC 5.01.040(A) TO CANCEL CERTAIN ACCOUNTS RECEIVABLE OWED BY FEDERALLY FUNDED ENTITIES TO THE CITY OF SEWARD WHEREAS, a partial shutdown of the United States government began at 12:01 a.m. EST on Saturday, December 22, 2018, and it is unknown when the United States government shutdown will end; and WHEREAS, several federally funded operations rent facilities from the City of Seward, most notably the United States Coast Guard, and other federally funded agencies and individuals conduct business with the City of Seward; and WHEREAS,federally funded operations,agencies, and individuals may be unable to pay rents, utilities, and fees to the City of Seward until after the United States government partial shutdown ends, and may therefore become subject to non-payment penalties and late fees owing to the City of Seward; and WHEREAS, the federally funded agencies and individuals are important to the City of Seward as business partners, community members, and service providers; and WHEREAS, Seward City Code Title 14 —Utilities, 14.01.020 provides "The provisions contained herein may not be waived by an officer, agent, or employee of the city of Seward. Any modification or amendment shall be submitted to and approved by the council of the city of Seward"; and WHEREAS, Seward City Code 5.01.040(a)provides that"[t]he finance director may, on approval of the city manager, cancel any account receivable except bills which may become a lien against property for taxes, but shall report such cancellations to the city council," which allows the finance director to cancel certain payments owing to the City of Seward; and WHEREAS, the City Council of the City of Seward finds that it is in the City of Seward's best interest to instruct the city manager to exercise the discretion afforded him in the code to cancel any future non-payment penalties and late fees that any federally funded operation, agency,or individual may incur. CITY OF SEWARD, ALASKA RESOLUTION 2019-002 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The city manager is hereby instructed to approve the finance director's authority to cancel an account receivable for non-payment penalties or late fees incurred by a federally funded operation, agency, or individual due to the partial United States government shutdown currently in effect. Section 2. The city manager shall report all such cancellations granted pursuant to Section 1 to the City Council at the next regularly scheduled City Council meeting. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14`" day of January, 2019. THE CITY OF SEWARD, ALASKA CW-AM David Squires, Mayor AYES: Towsley, Horn, Lane, McClure, Osenga, Squires NOES: None ABSENT: Seese ABSTAIN: None ATTEST: :renda J. Ba o,MMC City Clerk opt isissa,, (City Seal) ..4OF SEly,;s,, : .•? . • • = SEAL Agenda Statement Meeting Date: January 14, 2019 To: City Council Through: Jeff Bridges, Interim City M Agenda Item: A Resolution of the City Coun ·1 of th City of Seward, Alaska, Instructing the City Manager to Exercise His Authon Under SSC 5.0l.040(A) to Cancel Certain Accounts Receivable Owed by Federally Funded Entities to the City of Seward. BACKGROUND & JUSTIFICATION: With the current federal government shut down, federally funded agencies and federal employees will not be receiving funding or paychecks until the shut­ down is over. As a result, certain fees for harbor and utility expenses will not be received by the City. There are currently two federal agencies that use the Seward Harbor and Seward utilities, the Coast Guard and NOAA Fisheries. Also, other federal agencies such as the Parks Service and Forest Service use city utilities. Further, federal employees may not be in a position to immediately pay their utility bills and harbor charges. The result of not timely paying these charges would result in penalty charges of 10.5% per month on the utility bills. The penalty for not paying the harbor fees are 10%. The expectation is that the non-penalty charges would be paid once the federal government shut down is over. INTENT: The intent of this resolution is to provide relief to federal agencies and employees of penalties for inability to pay bills and charges due to the federal government shut down. CONSISTENCY CHECKLIST: Yes No NIA 1. Comprehensive Plan (document source here): X 2. Strategic Plan (document source here): X 3.Other (list):X FISCAL NOTE: We know that the monthly moorage for the Coast Guard Cutter USCG Mustang is $1,594.60 per month and the NOAA Fisheries charges are $907 .04 for the year. As far as individuals we will have to communicate this relief to the community and have some proof of federal employment to provide the relief contained herein. Approved by Finance Department: Jlt��@ ATTORNEY REVIEW: Yes __ X __ No ____ Not Applicable __ _ 91 RECOMMENDATION: Approve Resolution #2019-002, A Resolution of the City Council of the City of Seward, Alaska, Instructing the City Manager to Exercise His Authority Under SSC 5.0l .040(A) to Cancel Certain Accounts Receivable Owed By Federally Funded Entities to the City of Seward. 92