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2020-05-05 Special Meeting MinutesSpecial Meeting Alameda City Council May 05, 2020 1 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL TUESDAY- -MAY 5, 2020- -7:01 P.M. Mayor Ezzy Ashcraft convened the meeting at 7:16 p.m. ROLL CALL - Present: Councilmember Daysog, Knox White, Oddie, Vella and Mayor Ezzy Ashcraft – 5. [Note: The meeting was conducted via Zoom.] Absent: None. AGENDA ITEMS (20-298) Recommendation to Receive an Update on the $600,000 COVID -19 Small Business Relief Grant Program to Help Mitigate Barriers to Capital for the Most Vulnerable Alameda Small Businesses and Restaurants; and Provide Direction to Staff Regarding Additional Funding or Other Program Modifications. The Community Development Director noted the presentation for the item is with th e Economic Development Manager who is unable to join the meeting due to technical difficulties; inquired whether another item may be considered prior to the current item. Mayor Ezzy Ashcraft responded in the affirmative. The City Manager stated the current meeting will need to be recessed. *** Councilmember Vella moved approval of recessing the special meeting to consider the regular agenda. Vice Mayor Knox White seconded the motion which carried by the following roll call vote: Councilmembers Daysog: Aye; Knox White: Aye; Oddie: Aye; Vella: Aye; and Mayor Ezzy Ashcraft: Aye. Ayes: 5. Mayor Ezzy Ashcraft recessed the meeting at: 7:18 p.m. and reconvened at: 7:36 p.m. *** The Community Development Director gave a brief presentation. Mayor Ezzy Ashcraft inquired whether the award announcement will be made May 21st. The Economic Development Manager responded in the affirmative; stated staff will be accepting applications through the end of the day on May 7 th; grant winners will be announced May 21st. Mayor Ezzy Ashcraft inquired how the decision will be made. Special Meeting Alameda City Council April 21, 2020 2 The Economic Development Manager responded staff will be checking business licenses and the Business Improvement Assessments (BIA) to ensure applicants paid last year; stated if eligible, participants will be entered into a lottery; applications will be reviewed to ensure the 20% loss of income qualification threshold has been met. Mayor Ezzy Ashcraft outlined a portion of the staff report; stated Council is directing staff to look into supporting the assistance of small businesses; however, the direction is not exclusive to small businesses; noted Council is also including renters. Councilmember Oddie noted there are 470 members of the Downtown Alameda Business Association (DABA); inquired the amount for the West Alameda Business Association (WABA). Mayor Ezzy Ashcraft requested clarification that the inquiry only includes qualifying members. Councilmember Oddie stated that he would like to understand whether the ratio is the same. The Economic Development Manager responded the ratio is not the same; stated there are 212 WABA members on the list. Mayor Ezzy Ashcraft noted WABA includes Target, Safeway and some of the Alameda Landing businesses that could not apply for the small business grant. The Community Development Director stated staff has received 10 applications from Alameda Landing. Councilmember Oddie inquired whether additional funding could be provided for the program; inquired the options available for consideration; noted should all applicants be awarded, the cost will be $1.485 million. The Economic Development Manager responded the City has allocated $502,500 and $97,500 from Alameda Point. The City Manager stated three approaches to funding the grant program could be: 1) requesting support through a foundation or contributions to le verage the funds, 2) reviewing current budgeted expenditures that could be reduced and reallocated, and 3) allowing spending from the reserves; noted a revolving loan program is a good option but has a time restriction; stated there are ways to expand the current $600,000 by allowing businesses to take less than the $7,500 maximum award. Councilmember Oddie stated that he recommends a loan program through the City to businesses; the City can loan money to the fund; should a non -profit move forward, the money can be repaid to the General Fund. Special Meeting Alameda City Council May 05, 2020 3 The City Manager stated staff can look into the strategy. Councilmember Oddie stated 49 of the applicants are restaurants; noted all residents can apply for the Great Plates State project; expressed support for City restaurants benefitting from the program and putting more money into the program. Mayor Ezzy Ashcraft inquired whether applicants are being asked about other forms of assistance they have applied for; inquired whether applicants are solely relying on City grant funds; noted some restaurants have stayed open for take-out and delivery; inquired whether the businesses open status could be a funding consideration; stated some consideration should be given to businesses trying to keep employees on staff and serve the community; inquired whether said considerations can be factored into the process. The Economic Development Manager responded staff is requesting applicants apply for loans, grants and other program information as part of their application; sta ff is not factoring whether a restaurant is open; noted there are many considerations for a restaurant to open or not open; stated applicants are being requested to certify under penalty of perjury that they plan to open after the shelter in place order; staff is factoring whether the business projects a closure within six months after reopening. Mayor Ezzy Ashcraft inquired the enforcement for such assurances. The Economic Development Manager responded a lien could be placed. Mayor Ezzy Ashcraft questioned whether the process has been approved by the City Attorney’s office, to which the Economic Development Manager responded in the negative. Councilmember Vella inquired whether it is possible to weigh a restaurant considering closure or bankruptcy to ensure funds are put toward keeping businesses afloat; inquired the application contents to ensure accurate information. The Economic Development Manager responded in the negative; stated staff is not asking whether additional businesses are owned; noted staff is asking whether or not the applicant has been in business for longer than one year. Councilmember Vella inquired whether businesses younger than one year are ineligible. The Economic Development Manager responded the businesses are eligible, but staff will know the age of the business. Councilmember Vella inquired how the 20% loss will be calculated. The Economic Development Manager responded the applicants will use the month of Special Meeting Alameda City Council April 21, 2020 4 February financials. Councilmember Vella inquired whether the month prior will be used, to which the Economic Development Manager responded in the affirmative. Public Comment Read Into Record: Discussed issues on the policy and implementation of the program; stated not allowing publicly traded companies is a good step at limiting large businesses; urged the allowance of sole proprietors; stated a ranking system should be developed; urged discussion to ensure a simple and safe guarded program: Ronald Mooney, Alameda. Urged Council consider raising the loss level from 20% to a higher amount to target businesses most at-risk; stated those with a 50% or higher loss are more at risk : Text Message Submittal. Mayor Ezzy Ashcraft inquired whether a ranking system will be used. The Economic Development Manager responded a lottery system will be used. Mayor Ezzy Ashcraft expressed support for finding the businesses which have been impacted most. The Community Development Director stated there is a lottery program; the minimum criteria must be met in order for applicants to be eligible; the criteria includes a minimum loss of income of 20%; sole proprietorships with one employee are not eligible for funding; noted staff has balanced ensuring expediency as well as reaching vulnerable businesses; stated Council approved the eligibility criteria at the previous meeting. Mayor Ezzy Ashcraft stated more is known as time goes by; noted nuances should be considered due to businesses relying on the funds to survive; the requirement to include businesses with at least one employee came from the intention of helping more people; there is no easy way to say yes to some businesses and no to others; expressed concern about the survival of small businesses; inquired whether there is more the City could do. Vice Mayor Knox White stated that he is uncomfortable changing the criteria after it was approved at the previous meeting; applications close tomorrow; there is never a perfect way to move forward; $7,500 may not save a business which has lost 50%; expressed support for working with the State program; other money sources could be explored; the program is currently over-subscribed; expressed support for discussing increasing funding by $200,000 to $300,000; there are options for quick funding such as gofundme.com; expressed concern about a delay in setting up a community fund; stated Council must act now; expressed support for the use of a gofundme.com campaign, and directing staff to look into the use of gofundme.com; expressed concern about the materials for the funding applications not being in multiple languages; inquired Special Meeting Alameda City Council May 05, 2020 5 whether a grant program can be opened for those in the three highest language categories; stated the outreach will be very useful; the grant application process does not work when applicants are submitting via Microsoft Edge; expressed support for adding language stating: “please do not use Microsoft Edge;” stated the response to the program has been tremendous. Mayor Ezzy Ashcraft inquired whether the deadline is May 7 th, to which the Community Development Director responded in the affirmative. Mayor Ezzy Ashcraft inquired how the City could work with a gofundme.com campaign; inquired whether the City should put money into WABA’s gofundme.com campaign. Vice Mayor Knox White responded in the negative; sta ted there is interest in starting an Alameda Business gofundme.com campaign; should the City promote the campaign, with a list of 190 possible applicants, the following businesses would be considered to receive funding after the grant fund cutoff; noted little staff time would be used; stated work and fundraising would be from the private sector. Councilmember Vella expressed concern about changing the criteria; expressed support for changing the criteria if a second round of applications are done, prioritizing businesses that have taken a harder hit in the potential second round, and conducting a lottery; noted many financial issues for businesses are related to cash flow; expressed support for the City loaning money to the program , and pursuing public/private funds, which look at grants, non-profits and different donors; stated a gofundme.com campaign would be appropriate; she would like to consult with the City Attorney’s office to further understand the legality of collecting and administering funds; expressed support for promoting the opportunity on social media and websites; noted individual gofundme.com campaigns have been successful; stated that she would like to get to businesses that may not have the same social media following as others; expressed support for looking at businesses with multiple locations in the criteria for the next round; stated there are daycare providers and preschool operators, which have multiple locations and larger staff that should remain operational; expressed support for keeping businesses operational; stated daycare and preschool are important and should be included for eligibility. Councilmember Daysog stated the $600,000 being invested by the City represents a substantial amount of taxpayer dollars; some entities migh t not survive; there is risk involved; the risk is worth taking; the times are not ordinary; Council is making a reasonable and prudent decision; expressed support for the item , and the City Attorney’s office protecting Council from outstanding legal issue s which may arise from the use of gofundme.com; stated the amount of responses is a good indication that business communities are struggling. Councilmember Oddie expressed support for the item, finding more funding if possible and the exploration of gofundme.com campaigns; expressed concern about payments over $5,000; stated that he would support different criteria if there is another round of Special Meeting Alameda City Council April 21, 2020 6 funding; the issue is cash flow; expressed support for sole proprietors. Mayor Ezzy Ashcraft stated that she would like more information provided on the Great Plates program. The City Manager stated Great Plates is another way to help restaurants; staff supports looking into the program. Mayor Ezzy Ashcraft noted the program is for middle income seniors in need of meals. The City Manager stated there are about four programs within the community which provide meals to seniors; expressed concern about using the program and staff resources; noted the program requires an implementation plan; expressed support for using gofundme.com; expressed concern about the lack of regulation with gofundme.com; stated that he would like to ensure those donat ing understand donations will be used towards the cause; foundations and municipal trust options could be funding sources as well. Vice Mayor Knox White discussed the Meals on Wheels program; stated there is a huge need for assistance; noted a partnership with Meals on Wheels could be explored. Mayor Ezzy Ashcraft inquired whether staff has received sufficient direction. The City Attorney responded in the affirmative; stated Council can provide additional direction, but is not required to do so; Council may take a vote on any specific action, but a motion is not required. Vice Mayor Knox White inquired whether the City Manager has received direction and plans to investigate and report back at the next meeting on steps that can be taken for the Great Plates program and additional funding; expressed support for $300,000 and supporting the public-private partnership with the City Attorney’s input and the City Manager’s agreement. Mayor Ezzy Ashcraft stated the City Manager is keeping a close eye on the City’s finances to come back with an amount; expressed support for all three approaches provided by the City Manager. Councilmember Vella stated Meals on Wheels and the senior meal delivery at Masti ck Senior Center have increased delivery; the demand has gone up; expressed support for the programs to be run through or coordinated with an existing program or partnership; expressed concern about duplication of resources and staffing. Mayor Ezzy Ashcraft stated the Great Plates program signs up participating restaurants; the restaurants have criteria to meet from the Department of Agriculture and nutrition standards; the restaurants provide delivery with staff that has been through a background check; the City is not involved in the delivery, but would be involved with Special Meeting Alameda City Council May 05, 2020 7 informing qualifying seniors. Councilmember Vella stated many people have been contacted; noted Meals on Wheels or the Mastick Senior Center may not be serving everyone; inquired whether the City can work with the list of those unable to be served. Mayor Ezzy Ashcraft noted there is no income limit for Meals on Wheels. The Community Development Director stated neithe r Meals on Wheels nor the program at Mastick Senior Center are limited by income restrictions; noted there is a 6.2% administrative fee that the City must pay for the Great Plates program; inquired whether or not the money paid toward the administrative fee could be augmented or used to grow the grant fund, and whether staff can provide an update to the Great Plates program outside of a Council Meeting. Mayor Ezzy Ashcraft noted the administrative fee is reimbursable through Housing and Urban Development (HUD); stated that she will reach out to Congresswoman Lee’s office for a proper HUD point of contact; the money is put out initially and then reimbursed. Vice Mayor Knox White stated that he supports giving the option for the 80 selected businesses to receive less money; the option may not be taken by many businesses, but could allow the assistance of an additional 2 to 5 businesses. Councilmember Daysog expressed support for the proposal of using loans; outlined loaning Community Development Block Grants (CDBG) funds in the 1990s; stated the City can also look into working with HUD on waivers for income restrictions to loaning CDBG funds. Councilmember Oddie expressed support for allowing awarded businesses to take less of the grant to help additional businesses. Mayor Ezzy Ashcraft stated it is wise to consider. ADJOURNMENT There being no further business, Mayor Ezzy Ashcraft adjourned the meeting at 8:34 p.m. Respectfully submitted, Lara Weisiger City Clerk The agenda for this meeting was posted in accordance with the Sunshine Ordinance.