Council Subcommittee

MINUTES OF THE GILBERT COUNCIL SUBCOMMITTEE ON AZ CARES ACT, JANUARY 14, 2021, 2020, AT 4:00 P.M., VIRTUAL MEETING, GILBERT, ARIZONA COUNCIL PRESENT: Chair Aimee Yentes, Vice Mayor Yung Koprowski and Councilmember Scott September COUNCIL ABSENT: None STAFF PRESENT: Town Manager Patrick Banger, Deputy Town Clerk Chaveli Herrera, Parks and Recreation Director Robert Carmona, Department of Economic Development Director Dan Henderson, Volunteer and Community Resources Manager Melanie Dykstra, and Economic Development Deputy Director Jennifer Graves, CALL TO ORDER Chair Yentes called the meeting to order at 4:01 pm AGENDA ITEMS 1. Review of outstanding items from previous meeting. No discussion 2. Review, discussion and possible action of non-profit assistance program and CDBG funds. Manager Dykstra provided information on the funding recommendation review. She stated that 35 applications were received, and 28 organizations were recommended for funding while 22 were fully funded through the program. She provided additional information on the application and funding efforts and discussions. She provided information on the substantial amendment and stated that Gilbert had received CDBG- CV funds and allocated $150,000 to Economic Development. She stated that the recommendation was to disburse these funds back to CDBG-CV for re-allocation due to the $18,000,000 received through AZCARES. She provided background information on the HUD requirements to complete a Substantial Amendment for this process. She provided details on the staff recommendation including assistance to AZCEND Senior Nutrition Program, A New Leaf Homeless Shelter Program and Emergency and Minor Home Repair Program. Councilmember September asked for clarification that the funds were already allocated to Gilbert and we would be approving an amendment to re-allocate the funding which Manager Dykstra confirmed. Vice Mayor Koprowski stated she would be in support of the staff recommendation. Manager Dykstra provided information on a new request using un-allocated AZCARES funding of $30,000 to assist 75+ seniors in the vaccine process. She stated the County was overwhelmed and the hope was that the Town could facilitate some of the assistance needed. Chair Yentes asked if this would be new funds or from the same pot and Manager Dykstra stated it would be from the original $2,000,000 allocated. Chair Yentes asked if there was a breakdown on how the funds would be allocated. Manager Dykstra stated that they were discussing possibilities but there were many options and areas of need. Vice Mayor Koprowski discussed the critical issues being faced by our residents. There was discussion on some of the continued challenges. She encouraged that support be provided to the senior population and any resident who has a critical need and it not be worded too strictly. Councilmember September spoke in support of the critical issues for the community and stated it was a great idea to provide logistical support. He stated that he would like to see how money would be spent conceptually. Chair Yentes reiterated that there was general support but asked for more detail to ensure it was the right amount to serve the needs. Town Manager Banger further elaborated on some of the details and challenges being faced. He discussed the use of volunteers to help in these efforts and asked for Council’s support to begin offering the services now but still bring back data and information to the subcommittee. He elaborated on the need to begin assistance immediately. The consensus from the subcommittee was to move forward with these efforts and report back. Lastly, Manager Dykstra discussed some areas of awareness in additional funding opportunities from the United States Department of Treasury Emergency Rental Assistance and CDBG-CV3. She stated that any distribution of these funds would be brought to Council for approval. 3. Review, discussion and possible action of #GilbertTogether Business Relief Program. Economic Development Director Henderson provided a brief reminder on the three phases of the #GilbertTogether Business Relief Program, relief, recovery and resiliency. He provided an update on the Gilbert Grant Program and discussed the deployment of the program, marketing efforts, effectiveness of the program and lessons learned in administering the program. He provided information on the current parameters surrounding the program and the overall performance of the program. Statistical data was provided on the measures and program breakdown. Deputy Director Graves provided information on lessons learned and stated that they analyzed the declined applicants of the program. She stated that they partnered with the Gilbert Chamber and conduced a business survey in which there were 72 respondents. The data from the survey was provided in the PowerPoint presentation. She talked about the current parameters being some of the reasoning that some of those declines happened. She talked about the gross revenue decline threshold and stated that many applicants did not meet the threshold. She provided additional information on the business survey. Director Henderson discussed modifications to the Business Relief Grant that would expand the applicant pool, eliminate the $5,000,000 or less in gross revenue in CY2019, and reduce and adjust the decline threshold. Chair Yentes asked about some of the respondents of the survey and where they fell on the revenue requirements. Director Henderson provided information on the data and applicant pool and the use of accounting practices. Vice Mayor Koprowski asked if the Economic Development Team could provide a calculation on what the difference would be without the $35,000 cap or if the cap was higher. Director Henderson stated those calculations could be done and provided. Vice Mayor Koprowski spoke in support of the proposed modifications but stated she would support eliminating gross revenues in CY19 or raising $15,000,000 and reducing gross revenue decline threshold from 15% to 10%. She spoke of the risk in gross profit numbers. Chair Yentes discussed revenue streams and stated that many businesses were hit hard from a supply chain standpoint and products and profit margins. She discussed the complexity and issues around businesses not bringing home the same numbers and stated that adjustments should be made. Councilmember September stated that he supported Vice Mayor Koprowski’s recommendations and removing the revenue threshold although the $15,000,000 would also be fine. He stated that he had conversations with many restaurant owners who did not qualify for assistance because they did not qualify due to their costs. He stated that this was an important piece to make possible provisions. Deputy Director Graves discussed suggestions to the program and the adjustment calculator, and Chair Yentes asked if these changes would impact those who already applied for assistance. Deputy Director Graves stated that applicants would not need to go back through the process and these changes could be handled administratively. There was discussion and clarification on the employee impacts being from 2017-2020. Vice Mayor Koprowski asked if the number of employees was verified as it pertained to employee impacts. Deputy Director Graves discussed the various documents submitted through the application process and the various verifications and wages paid by employer throughout the year. Vice Mayor Koprowski responded to comments about gross profit and stated that it made sense to those challenges being seen in supply changes. She stated that she would be in support of adding that as an element if there was a way to tie expenses to those other than the owners draw. There was discussion with Deputy Director Graves on ways that may be implemented. Councilmember September discussed supporting other businesses who have been hurt but who fall outside of these parameters such as dry cleaners. He asked how the Town was addressing businesses like that. Deputy Director Graves discussed the difficulty in making those determinations and Director Henderson expressed the Town’s endeavor to do more although there was not a clear understanding at this time. Councilmember September asked if it was possible to look at the business square footage as a means to quantify award amount as is done with employees and those impacts. He talked about additional possibilities concerning rental or property tax and connection in that regard. Deputy Director Graves provided information on abilities of the calculator and stated it was a two-pronged approach. Chair Yentes encouraged staff to communicate to any business who may inquire about assistance. Deputy Director Graves stated that they have done that across the board. Chair Yentes clarified the recommendations of the subcommittee: there was consensus on elimination of $5million or less on gross revenue and the option of raising that to $15,000,000. There was discussion on the cap amount. There was additional consensus on including not just gross revenue but also profit with a caveat of requiring additional information or documentation. There was a consensus on reducing the overall decline from 15% to 5% and consensus on the adjustment recommendation. Lastly, she stated that this improvement will help to broaden the net. Director Henderson offered clarification on increasing the cap and stated that there was no recommendation to do so at this time. Director Henderson completed his presentation of the grant overview and provided additional overviews on all components of the #GilbertTogether recovery program. He provided data on the success of the program. Chair Yentes thanked him and his team for the tremendous job done. Councilmember September asked if the same method to survey the respondents could be utilized in order to reach more people. Director Henderson confirmed that was possible. Councilmember September thanked Director Henderson and Deputy Director Graves for their work. 4. Next steps including timelines and checkpoints. Chair Yentes stated that a follow up meeting would not be needed at this time unless something came up that needed additional review. Town Manager Banger discussed a future discussion regarding COVID sick leave, and Chair Yentes stated that Director Carmona was collecting more information and the subject could be a future meeting item or discussed at the Council Retreat. ADJOURN A MOTION was made by Councilmember September, seconded by Vice Mayor Koprowski, to adjourn the meeting. Motion carried 3-0. Chair Yentes adjourned the meeting at 5:24 pm ATTEST: ___________________________ ___________________________________ Aimee Yentes, Chair Chaveli Herrera, MMC, Town Clerk