HomeMy WebLinkAboutRes2020-094Sponsored by: Regis
CITY OF SEWARD, ALASKA
RESOLUTION 2020-094
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ACCEPTING KENAI PENINSULA BOROUGH CARES ACT
GRANT FUNDS IN THE AMOUNT OF $1,495,170.49, AND
DISTRIBUTING $1,000,006 TO BUSINESSES THAT RECEIVED ROUND
ONE GRANT FUNDS PREVIOUSLY AND $336,000 TO PREVIOUSLY -
FUNDED NON -PROFITS, AND APPROPRIATING FUNDS
WHEREAS, the City recently received $1.4 million in Kenai Peninsula Borough &,Rant
funds; and
WHEREAS, the City shifted the non-profit grant distributions, including the Alaska
SeaLife Center, from the federal grant to the borough grant in order to fully expend the $1.4
million received, and also to follow the allowed expenditures assigned by the borough; what
remained in the federal grant was $1,336,006; and
WHEREAS, this action opened up federal grant money to Seward that needs to be spent
by the end of 2020; and
WHEREAS, the remaining half of the balance of $1,000,006 will be distributed to
Seward businesses who previously received Round One grant funds; and
WHEREAS, this business grant allotment program will only allow businesses that have
previously applied and been accepted in the first program to be eligible; and
WHEREAS, no further business applications will be accepted; and
WHEREAS, the eligible award amounts will use the same qualifying tiers to determine
the amount of funds granted to business; and
WHEREAS, the award amounts are based on 2019 gross sales as follows:
and
I
Tier I - 2019 revenues of $20,000 to $50,000
Tier 2 - 2019 revenues of $50,001 to $100,000
Tier 3 - 2019 revenues of $100,001 to $250,000
Tier 4 - 2019 revenues of $250,001 to $500,000
Tier 5 - 2019 revenues of more than $500,000
CITY OF SEWARD, ALASKA
RESOLUTION 2020-094
WHEREAS, based on the amount of $1,000,006 for business allotment, award
amounts are as follows:
Tier 1 - $960.31
Tier 2 - $3,201.04
Tier 3 - $6,402.09
Tier 4 - $9,603.13
Tier 5 - $12,804.17
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The City Council hereby authorizes the City Manager to accept grant funds in
the amount of $1,495,170.49 to State Grant Revenue account no. 80083-0000-4251 and
appropriating to Pass-Thru Payments account no. 80083-0000-7809.
Section 2. The $1,336,006 amount will be divided as follows: $1,000,003 to Pass-Thru
Payments account no. 80081-0000-7809 for business grant allotments for businesses that applied
and were accepted for Round One of the first Business CARES Grant Program and $336,000 to
Pass-Thru Payments account no. 80081-0000-7809 for previously -funded non -profits.
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 December, 2020.
AYES:
Seese, Baclaan, McClure, Osenga, Te
NOES:
None
ABSENT:
None
ABSTAIN:
Casagranda, DeMoss
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CITY OF SEWARD, ALASKA
RESOLUTION 2020-094
ATTEST:
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City Clerk
(City
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• SEAL •
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Agenda Statement
Meeting Date: December 14, 2020
To: City Council
From: Norm Regis, Acting City Manager
Agenda Item: A Resolution of the City Council of the City of Seward, Alaska, to
Distribute Half of the Remaining $1,336,006 CARES Grant Funds to Cover
CARES -Eligible City Payroll and the Other Half a Business Grant
Allotments, and Appropriating Funds
BACKGROUND & JUSTIFICATION:
The City recently received $1.4 million in Kenai Peninsula Borough grant funds, allowing Seward
access to federal grant money that is required to be spent by the end of 2020.
The City and City Council have agreed that these funds best used to cover COVID related city
payroll expenses and as business grant allotments to the community. The funds will be split evenly
between both programs. This will work as follows:
• $668,003 to cover COVID related payroll expenses to Public Safety, the City Manager
Department, Mayor & Council, and the City Clerk Department
• $668,003 to the Seward community in another business grant program
Requirements for the business grant program:
• Only businesses that have previously applied for the CARES business grant program are
eligible
No further business applications will be accepted
The award amounts are based on the 2019 gross sales:
o Tier 1 - 2019 revenues of $20,000 to $50,000
o Tier 2 - 2019 revenues of $50,001 to $100,000
o Tier 3 - 2019 revenues of $ I00,001 to $250,000
o Tier 4 - 2019 revenues of $250,001 to $500,000
o Tier 5 - 2019 revenues of more than $500,000
Based on the remaining amount of $668,003 for business allotment, award amounts are as
follows:
o Tier 1 - $641
o Tier 2 - $2,138
o Tier 3 - $4,277
o Tier 4 - $6,415
o Tier 5 - $8,553
"v,
INTENT:
To use the half of the federal grant money to cover CARES -eligible City payroll expenses and the
other half as business grant allotments
CONSISTENCY CHECKLIST:
Yes
No
NIA
1
2.
Comprehensive Plan
Strategic Plan
3.
Other (list):
FISCAL NOTE:
This action will expend the remaining grant funds by the deadline of December 31, 2020.
Administration will bring forward a final, comprehensive report on how both the Borough and
Federal grants were spent once final grant reports have been finalized and submitted to the
appropriate granting agencies.
Approved by Finance Department: IV
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
City Council approve Resolution 2020- , for the Acting City Manager to accept $1.4 million
in federal funds, and to use half to pay for CARES -eligible City payroll expenses, with the other
half to be used as business grants for the Seward community.
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