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Economic Stabilization Task Force (Sunset January 2021)

Regular Meeting

Juneau, AK · October 8, 2020

AgendaMinutes

Minutes

Economic Stabilization Task Force Appointed by the City & Borough of Juneau’s Mayor Meeting Minutes from October 8, 2020 Call to Order The Economic Stabilization Task Force meeting was called to order at 3:02 p.m. by Mr. Mertz. Task Force Members Present: Linda Thomas, Max Mertz, Susan Bell, Theresa Belton, Bruce Botelho, Eric Forst, Ken Koelsch, Lauren MacVay, Laura Martinson, and Terra Peters Task Force Members Absent: None Staff Present: CBJ Deputy City Manager, Mila Cosgrove; CDD Administrative Officer, Brenwynne Grigg; and CBJ Finance Director, Jeff Rogers CBJ Assembly Members Present: Mayor Beth Weldon and Loren Jones Special Guest Speakers: President of Juneau Soccer Club, Whit Adams; President of Falcons Full Court Club, John Blasco; Representative for Glacier Swim Club, Amy Bowers; Pastor of Shepherd of the Valley Lutheran Church, Tari Stage‐Harvey; President and CEO of Tlingit Haida Regional Housing Authority, Jacqueline Pata; Executive Director of Juneau Community Foundation, Amy Skilbred; Executive Director of Catholic Community Services, Erin Walker‐Tolles; and, Concerned Business Coalition Members Kristin Mabry and Leeann Thomas Approval of Agenda Mr. Mertz asked that Mr. Rogers give a brief update on remaining CARES Act funding and present on an updated pie chart and table immediately after the approval of minutes. MOTION: by Mr. Botelho to approve the agenda as amended. Ms. Thomas seconded the motion. Hearing no objections, the motion was approved. Approval of Minutes MOTION: by Mr. Botelho to approve the Economic Stabilization Task Force meeting minutes from September 24 and 28, 2020. Mr. Forst seconded the motion. Hearing no objections, the motion was approved. CARES Act Funding – Pie Chart & Table Mr. Rogers presented an updated pie chart and table, sharing an overview of programs that have received CARES Act funding. He stated that dependent upon whether the nonprofit grant program can fully expend its funds, he estimates there is between $3.5 and $5 million remaining in CARES Act money. Juneau Lifeline: Funding for Businesses Substantially Harmed by Shutdown Mr. Mertz introduced members of the Concerned Business Coalition to speak on their proposal for Juneau Lifeline: Funding for Businesses Substantially Harmed by COVID‐19 Related Shutdowns. He introduced Ms. Leeann Thomas and Ms. Kristin Maybry as spokespeople for the coalition. Ms. Thomas stated the Concern Business Coalition is requesting funds for year‐round operations suffering extreme hardship due to COVID‐19. Since the original request from the Juneau/Lynn Canal Cabaret, Hotel, Restaurant, and Retailers Association (CHARR), the proposal has broadened to include gyms, personal services, and year‐round tourism. Most business in Juneau struggle in the winter months in normal years, but many of these have lost more than 50% of sales revenue during their bread and butter months in the summer. These summer months are what they rely on to get them through the winter. Additionally, they are incurring increased costs for new cleaning protocols and testing of staff. Many of the bars and restaurants have lost product during shutdowns due to perishable items. The businesses facing extreme hardship rely on face‐to‐face customers and they need people to walk through their doors, though many of their customers are still afraid to patronize their businesses due to COVID‐19. The businesses have worked diligently to stay open and stay safe, while still losing over 50% of sales in their third quarter. This $2 million grant proposal extends a lifeline to help these businesses facing extreme hardship to stay open during the winter in hopes that summer will bring more economic activity. To be eligible, the business must be a year‐round operation, which is verifiable by reviewing sales tax quarterly returns. If the program becomes oversubscribed, Ms. Thomas recommends reducing grants at the levels that are oversubscribed. The three levels of grants are $20 thousand grants for bars, $15 thousand grants for restaurants, and $15 thousand grants for other affected businesses. After gathering data, she believes approximately 128 businesses will apply. Ms. Mabry introduced herself as Co‐Owner of The Gym in Juneau. The Gym endured a forced closure from March 18 to May 9 and lost many membership subscriptions as a result. When allowed to reopen, it was only at 25% of their capacity. They have been forced to lay off all their staff just to continue covering expenses and their overall membership levels are still down. She thanked the Economic Stabilization Task Force for hearing this proposal and allowing them to be a part of the discussion. Mr. Botelho asked if the financial distinction in the proposal between bars and restaurants is because bars were shut down entirely. Ms. Thomas affirmed his assumption, stating this program targets those who have been forced to close completely, and those who are only allowed to operate at 25% to 50% of their capacity. Mr. Botelho asked how she arrived at 30%, where it states in the proposal that businesses must pledge that amount of their grant proceeds on payroll expenses or employee benefits. Ms. Thomas replied that Mr. Mertz assisted them with that number, but they believe most employers will in fact spend over 30% of their grant toward staffing. MOTION: by Mr. Koelsch to recommend to the Assembly the Juneau Lifeline Proposal. Mr. Botelho seconded the motion. DISCUSSION Mr. Koelsch stated that through his past roles working as a High School Activities Director, working on Glory Hall property acquisition, and as the City & Borough of Juneau’s Mayor, he became very aware that businesses in this targeted market have consistently supported the Juneau community by donating to fundraising efforts and charitable organizations. He believes it is time for the Juneau community to give back. Ms. Thomas mentioned the large number of letters and emails received over the past few days from a broad base of companies sharing their stories and requesting help. The letters claim that this proposal will make a difference in their payrolls and allow them to last a while longer – hopefully until summer. She reminded the Task Force that this assistance proposal is beyond the Business Sustainability Grant, because it requires evidence of extreme hardship to qualify. Ms. Bell stated that since her time at McDowell Group, they have performed numerous economic impact studies. It is clear there is a misperception on how much seasonal business and local ownership supports Juneau’s economy. She added that seeing the collective impact of how this community is hurting is profound. She expressed support for the motion and asked to capture the statements of Mr. Koelsch in the recommendation of the Task Force. Ms. MacVay shared that she read every email and letter submitted for this proposal. Many of these businesses are claiming an 80% to 90% decrease in revenue, and this money will be well‐spent if the Task Force is interested in having a business community next year like the one we have previously enjoyed. Mr. Botelho said that it is becoming apparent there may not be another federal stimulus package anytime soon, and this aid will help these businesses make it until the end of the year. Mr. Mertz shared data on the number of qualifying businesses, including an expanded category for Single‐ Employee/Owner/Juneau‐Based. The original proposal shows 74 restaurants, but information provided by Mr. Clinton Singletary, CBJ Sales Tax Administrator, reflects 80 restaurants. Mr. Mertz stated that he was moved by the comments received and felt there was an oversight in the proposal. There are single owner businesses that may not have opened their doors all year, but still have Juneau residences and children in Juneau schools. These owners are working their business all year, even if their doors are not open, by collecting other revenue and gearing up for next season. For these reasons, he believes it is fair to include this group. Therefore, if they do not have a 3rd quarter sales tax record because there is zero business, but can demonstrate that they live in Juneau there should be a way for them to participate. However, because they do not have employees, the grant amount should be reduced. Modified & Expanded Extreme Hardship Proposal Numbers Type Grant Amount Total 14 Bars $20,000 $ 280,000 80 Restaurants $15,000 $1,200,000 40 Other Year Round $15,000 $600,000 25 Single‐Employee/Owner/Juneau‐Based $7,500 $187,500 $2,267,500 ⁓$2,300,000 Mr. Mertz asked for an amendment to the motion to correct the number of restaurants from 74 to 80, and allow provisions for small single owner Juneau based businesses. This brings the total request from $2 million to $2.3 million. AMENDMENT: by Mr. Botelho to increase the request for the Juneau Lifeline Proposal to $2.3 million and including a category for single‐employee business owners who are based in Juneau. Ms. Peters seconded the motion. Hearing no objections, the amendment was approved. Mr. Mertz stated there was now an amended motion on the table and asked for objections. OBJECTION: by Ms. Thomas for the sake of discussion. Ms. Thomas stated that for the sake of conversation, she would like to discuss what objections the Assembly or others might have regarding this program. She suggested that perhaps some would rather see additional funding for nonprofits. However, nonprofits have been unable to spend the money allocated so far unless they shift the focus away from sustainability and toward new programs. Ms. MacVay said the major downside to this program is that there will be some other need competing for the funding. The Assembly will have to weigh that when they consider all proposals. She added the larger risk is that some CARES Act funding will be returned to the federal government if unspent. To lose the opportunity for that money to be spent in Juneau is unacceptable. She asked if the $2.3 million allocated to the Juneau Lifeline Program is unsubscribed, could the remaining amount be divided evenly among grant applications? She asked for that to be considered in the writing of the ordinance. WITHDRAWAL OF OBJECTION: Ms. Thomas asked for more discussion, and hearing none, withdrew her objection. Hearing no objections, the amended motion was approved. Trail Projects Status Update Mr. Botelho shared that the Conservation Corps Grant Program was ending. There were conversations with the CBJ and Trail Mix around extending additional funding for projects, but it was decided there was not enough time to complete those projects, now that crews are starting to run out of daylight to work. Trail Mix, Eaglecrest, and CBJ Parks and Recreation have improved the following trails:  Horse Tram Trail  Anne Coleman Beach Access Trail  Eagle Valley Cabin Trail  Dicks Lake Trail  Eaglecrest Mountain Bike Trail  Eagle Valley Ropes Course Trail  Red Mill Trail  Granite Creek Trail  Eagle Valley Elevated Walkway Replacement Additionally, Trail Mix has documented 136 hours of job skills training per crewmember. Trainings include trail design and layout, safe rigging practices for trail work, wilderness advanced first aid, basic chainsaw operation, trail mix orientation, and basic trail skills. Mr. Botelho expressed that this program has been a successful undertaking and Juneau citizens will enjoy the fruits of this for years to come. Nonprofit Grant Update Ms. Thomas shared that $1.8 million of $3 million allocated to the Nonprofit Sustainability fund has been approved and will be awarded as grants. Since additional funds remain in the program, the City Manager extended the application period to October 21. There was a request to increase the grant amounts, which would result in total grant amounts of $2.4 million, an increase from the original $1.8 million. However, now that the application period is extended, the total grant amounts could be greater if additional applications are submitted. Advertisement efforts are underway for the extended application period. Ms. Thomas also noted that there are four additional social services program requests. These are: 1. Tlingit and Haida Regional Housing Authority requesting funds to purchase and renovate property to provide shelter for youth who are experiencing homelessness. 2. Family Promise requesting funds to purchase and operate a facility for their operations in supporting families that are experiencing homelessness. 3. Southeast Alaska Food Bank requesting funds to purchase a 6‐month supply of food and rent heated storage space for that food. 4. Shepherd of the Valley requesting funds to operate a Safe Place for Schooling program to support children during online school. Funding Request for Homeless Youth Shelter Mr. Mertz introduced Ms. Jacqueline Pata, President and CEO of Tlingit Haida Regional Housing Authority, and asked her to present on the funding request submitted to the Task Force. Ms. Pata stated that Tlingit & Haida Regional Housing Authority (THRHA) is a part of the Juneau Homeless Coalition, and that they work with a Youth Homeless Coalition as part of a statewide effort in Alaska. Currently, Juneau does not have a sheltering facility for youth, despite having 100 – 150 youth who are vulnerable and/or couch surfing at any given time. Zach Gordon Youth Center and THRHA have collaborated on this proposal to create a homeless youth shelter, and have applied for a variety of funds. To date, they have received $150 thousand of CARES Act funding from the U.S. Department of Housing and Urban Development (HUD). A property on Hurlock Avenue has been identified as a location for this youth shelter, as it was used in this capacity in prior years, formerly known as Cornerstone. The CBJ Planning Commission considers approval of their request for a Conditional Use Permit on October 13. If approved, THRHA plans to acquire the property from its current owners, Alaska Legacy Partners, and give the property and building back to the CBJ. The CBJ would then lease the property to THRHA for use. THRHA will serve as the property managers and Zach Gordon will provide the shelter services. The proposal budget includes $924 thousand in renovations, which includes a new roof. THRHA plans to continue pursuing additional funding for this youth shelter. Funding Request from Family Promise Mr. Mertz asked Pastor Tari Stage‐Harvey of Shepherd of the Valley Lutheran Church to present her proposal with Family Promise. Pastor Stage‐Harvey stated that Family Promise relies heavily on volunteers and church buildings in meeting the needs of displaced families. Since the COVID‐19 pandemic, many of the church buildings have been closed down and most of the volunteers struggled to serve in a similar capacity as they had pre‐COVID. Currently, Family Promise is relying heavily on Chapel by the Lake in Auke Bay to fill the gaps by hosting families and Day Center services in their facility. At some point, Chapel by the Lake will need to reclaim their space and there will be a gap if congregations are not yet be able to host families. A building has become available that is within their means that can be used as a Day Center. The building will not shelter families overnight, but families are welcome during the day when they are not working, and staff will use some of the space for offices. Mr. Mertz thanked Pastor Stage‐Harvey and Ms. Pata for their presentations. He added that CARES Act funding is running against the calendar at this point, since money must be expended on active programming prior to December 30, 2020. He asked Mr. Rogers to report on this. Mr. Rogers stated that, according to the U.S. Treasury Guidance on CARES Act funds, expenditures must be for things deemed necessary and for expenses incurred due to the public health emergency of COVID‐19. Mechanically, funds must be spent by December 30, 2020, and not just obligated. Hypothetically, if a facility was purchased with CARES Act funding, the CBJ would expect the facility to be in use by December 1, 2020. The CBJ Assembly’s next meeting is on October 26, where they could pass an emergency appropriation resolution if that is their will. Their next regular meeting is November 23, where it will be possible for an ordinance to move, but there will be new Assembly members who may have a learning curve. Mr. Mertz asked if the Task Force would like to refer the two programs funding requests to Mr. Rogers and Mr. Palmer to vet the information, their eligibility for CARES Act funding, and their ability to be operational prior to the deadline. Mr. Botelho said he would like to hear from Ms. Pata and Pastor Stage‐Harvey regarding whether they feel they can meet the mechanical requirements as Mr. Rogers presented. Ms. Pata stated they feel they can have the youth shelter operational by the deadline, because the building is habitable as is. They can purchase the necessary equipment for furnishing and renovate in stages while operational. Additionally, THRHA has their own construction crew and are not bound to an outside contractors’ schedule. THRHA is concerned because homeless youth are currently receiving their services from adult service providers, and this is an unsafe place for them to be. Pastor Stage‐Harvey shared the building they would like to purchase is move‐in ready and would not be a radical change in use from its current use. Staffing at Family Promise has grown from one to six to meet the needs created by COVID‐19, so at minimum, the extra office space needed is directly linked to COVID‐19. They are ready to move swiftly. Ms. Thomas stated that in considering the best use of the remaining CARES Act funds, she is bothered that there is not a grant program focused on providing food and shelter. She added that the Alaska Community Foundation is due for another round of funding, which will be out in two weeks. The next couple of weeks are critical for nonprofits and the program funding being requested. The next Task Force meeting on October 22 will still allow for a timely Assembly recommendation. Ms. Thomas reminded the Task Force of two additional nonprofit requests which are directly linked to food and shelter. The Southeast Alaska Food Bank is requesting $79.3 thousand to rent two heated storage spaces for November and December, and to purchase and store six‐months of nonperishable food. Additionally, there is the outstanding request of $95 thousand to fund the Safe Space for Schooling program. Pastor Stage‐Harvey informed the Task Force of a vote that is happening tonight on the five locations for the Safe Space for Schooling program, which are scattered throughout the valley, in the downtown, and in Douglas. Mr. Mertz asked Mr. Rogers if purchasing a six‐month supply of food is CARES eligible. Mr. Rogers replied that the U.S. Treasury Guidance broadly allows for advanced purchasing of supplies related to the pandemic. Ms. Thomas recommended deferring action on these programs until October 22 to allow time to gather additional information, as this still may not represent a complete picture of the need. Mr. Botelho asked if there was a reason to defer on the request from the Southeast Alaska Food Bank. Mr. Mertz stated he does not feel the need to defer on the Southeast Alaska Food Bank request or the Safe Places for Schooling program. Ms. Thomas stated that if this group, which is very aware of what is happening in the community, is not aware of a higher and better use in the area of food and shelter, she agrees to move forward. Ms. Martinson agreed, stating that the Task Force is always looking for gaps in food and shelter, but these items are important and if the drafting of an ordinance can be set in motion sooner, that is ideal. MOTION: by Ms. Martinson to recommend to the Assembly funding for the Safe Space for Schooling program and funding for the Southeast Alaska Foodbank. Ms. Bell seconded the motion. Hearing no objections, the motion was approved. Mr. Mertz asked Mr. Rogers and Mr. Palmer to gather additional information on the requests from Family Promise and THRHA to determine if this is technically allowable through the U.S. Treasury Guidelines for CARES Act funding. Housing Assistance Update Mr. Mertz asked Ms. Erin Walker‐Tolles for an update on the Housing Assistance program that was passed by the Assembly on October 1. He added that this is an important program, and there may be a demand for additional funding down the road. Ms. Walker‐Tolles shared that staff at Catholic Community Services (CCS) has been moving quickly to ready this program. They are already receiving phone calls requesting details and wanting to know when the application period begins. CCS has created a messaging system to ensure interested individuals are receiving correct information regarding eligibility requirements. CCS is not accepting applications at this time, but they are meeting with the CBJ Information Officer, Lisa Phu, for assistance with advertising. They expect the application period to open one week after Ms. Phu initiates the information release. Mr. Forst suggested outreach to the landlords of the larger apartment complexes, since they may know of some tenants who could benefit from this program. Ms. Walker‐Tolles said that was a great idea and replied that information will also be shared with the nonprofit network, tribal corporations, the business community, and anyone in an affected industry. Additionally, they plan to release information to the Interfaith Council, Love Inc., and the broader faith community through churches. CCS will share this as broadly as possible and will post flyers around town. She welcomed any ideas for places of notice. CCS plans to donate a radio advertisement and a digital ad in a media outlet such as KINY, but asked if the CBJ can support funding for additional advertising. Ms. MacVay said she would reach out to local banks, informing them of the program so they can promote it to those they see are in need. Ms. Belton added that Central Council for Tlingit and Haida Indian Tribes of Alaska would provide advertising through their communications department in digital and ink forms. Ms. Bell suggested the utility companies might include an advertisement for the program on their statements. Ms. Walker‐Tolles added they know many families who faithfully pay their utilities and house payments in order to avoid homelessness, but cannot afford to buy their children winter boots and scrimp on food. This program will provide some temporary relief. Mr. Rogers said the CBJ will pay for additional advertising, and that he will work with Ms. Phu. Mr. Mertz asked if it makes sense to set aside leftover CARES Act funds in the event the Housing Assistance Program needs additional funding, since there seems to be much demand. Mr. Forst agreed, adding that this program could be a way to sweep up any excess funds that are unspent. He added that this is an ideal program for this purpose, since it reaches the broadest part of the population and is not targeting a specific industry. MOTION: by Mr. Forst to increase funding to the Housing Assistance program by $1 million. Ms. Bell seconded the motion. Ms. Bell asked Mr. Rogers to consider a mechanism in the ordinance for capturing excess funds into this program as the deadline nears. Mr. Rogers stated that it is in the Assembly’s power to authorize additional payments directed at public assistance in late December. There are no restrictions on expanding the Housing Assistance Program, even toward the end of the year. In January 2021, CBJ Finance will reconcile how much has been spent and find expenditures from 2020 that qualify as COVID‐19 eligible to reimburse the internal government organization. At the very least, Bartlett Regional Hospital and the Juneau School District will be able to reconcile everything that might remain. Mr. Mertz suggesting changing the parameters of the program by increasing the income level if there are not enough expenditures. Ms. MacVay suggested increasing the payouts. Mr. Mertz suggested considering the additional $1 million as a placeholder item and including this topic as an agenda item at the October 22 meeting. By then, the application should be out and an update may better inform the motion for an additional $1 million in program funding. MOTION WITHDRAWN: The motion to increase funding to the Housing Assistance Program by $1 million was delayed until the October 22 Task Force meeting. Business Stabilization Grants Update Mr. Rogers informed the Task Force that a supplemental grant agreement has been signed, and additional funds are on their way to JEDC. JEDC staff is still reviewing applications, but many of the applicants have received the 75% prepayment authorized by the CBJ. Informational Item: Youth Activities Mr. Mertz introduced Mr. John Blasco, President of Falcons Full Court Club; Ms. Amy Bowers, Representative for Glacier Swim Club; and, Mr. Whit Adams, President of Juneau Soccer Club, who had submitted a letter to the Task Force. Mr. Blasco shared that coaches and youth recreation advocates are increasingly concerned about the minimal social interaction available to children due to online learning and canceled recreation activities. Data across the country shows an increase in mental health issues and substance abuse in children. Bartlett Regional Hospital is reporting an increase in Emergency Department visits from children for substance abuse and depression. Contributing factors include isolation from social support networks and lack of sports. Mr. Blasco stated that he, Ms. Bowers, and Mr. Adams are interested in finding a way for kids to re‐engage safely in activities in gyms, the field house, and the pools. They understand that CARES Act funding for 2020 is almost depleted, but are requesting that, if there were another round of federal stimulus, the Task Force prioritize the support of youth recreation for the health and well‐being of the children in Juneau. Ms. Bowers added that parents are hungry to involve their children in activities. Glacier Swim Club (GSC) is surprised at the demand and their resulting wait lists. Addressing the wait list is challenging due to the limited times and lanes allowed in the pool. Additionally, there are over 500 children not being served in the Fourth Grade Learn to Swim program this year. Expenses for GSC are higher than usual due to expensive protocols with decreased enrollment and fundraising budgets. Mr. Adams stated that the Juneau Soccer Club (JSC) normally hosts 140 to 160 children. In March, all activity ceased. Since then, they have struggled to find coaches, because many former coaches are considered critical workers in the community and cannot be involved with that many children. This week, the JSC is operating in a limited capacity by offering services to 10 to 14‐year‐olds on co‐ed teams. Typically, JSC coaches players from age 3 to 18. Sadly, this means a large majority of regular soccer players in Juneau do not have access to the sport. Ms. Bell added that from a business perspective, youth activities are struggling financially because many raffle and fundraising events are not happening. If federal funding expands, she supports the idea that this is a real area of concern. Mr. Forst, a parent of a 14‐year‐old, stated that children are struggling with being unable to play sports, attend school in‐person, and have a real social life. Social interaction with parents can get old fast – they need interaction with their peers. He encouraged the Task Force to keep this at the top of their list if additional funding is dispersed. Mr. Mertz expressed his agreement with everyone, adding that he and Mr. Rogers had discussed how hindsight is revealing that this is a big deal. He appreciates the work of the youth activities groups and hopes to be looking at a support package later. Public Comment Matrix Ms. MacVay shared that proponents of the Juneau Lifeline proposal were motivated to submit public comment, and some very moving and informative emails were received. Mr. Forst encouraged the Task Force to read all the letters if they have not already. He relates with many of the frustrations, concerns, and worry found in them, and hopes the Assembly recognizes this as well. Good of the Order Ms. Thomas informed the Task Force that Mr. Bradley Grigg, Chief Behavioral Health Officer from Bartlett Regional Hospital, would be providing updates on the impact of COVID‐19 on children’s mental and behavioral health at the next meeting on October 22. Ms. Thomas also stated that she and Ms. Bell began work on the report of Task Force activities, and are developing a format for everyone to complete. However, she suggested waiting until November due to many programs on the agendas that have time constraints. Mr. Mertz shared that the request for proposals are live for the ArtWorks Program. There is a Q&A meeting at noon on October 15, and proposals are due October 26. It appears there is a huge demand; the Juneau Arts and Humanities Council is receiving a lot of feedback from the Juneau Arts Community. They have even received feedback and enquiry from all over the state, and have had to turn artists away who are not local to Juneau. It appears this program is a good fit and is timely. He will ask Ms. DeCherney, the Executive Director of the Juneau Arts & Humanities Council, to give an update at a future Task Force meeting. Adjourn At 4:49 p.m. the meeting was adjourned.

Agenda

Page 1 of 45 Economic Stabilization Task Force Appointed by the City & Borough of Juneau’s Mayor Meeting Agenda Thursday, October 8, 2020 3:00 p.m. Members of the public may listen in or watch by following one these options Please click the link to join the meeting: https://juneau.zoom.us/j/96192521381, or call 1‐669‐900‐6833 or 1‐253‐215‐8782 or 1‐346‐248‐7799 or 1‐929‐436‐2866 or 1‐ Assembly Charge 301‐715‐8592 or 1‐312‐626‐6799, and enter The purpose of the task force is Webinar ID: 961 9252 1381 to review the economic landscape and make Send comments to Economic‐Stabilization@juneau.org recommendations to the assembly. In particular, the Time Agenda Item Presenter task force should: 3:00 p.m. Call to Order Mr. Mertz 1. Examine federal and state 3:01 p.m. Approval of Agenda Mr. Mertz government financial assistance programs and 3:02 p.m. Approval of Minutes Open identify and prioritize any “gaps” that exist. 3:05 p.m. Juneau Lifeline – Funding for Businesses Mr. Mertz Substantially Harmed by Shutdown 2. Identify and promote strategies that enable 3:30 p.m. Trail Projects Status Update Mr. Botelho businesses to continue operations safely such as 3:40 p.m. Non‐Profit Grant Update Ms. Thomas curbside pick‐up, take‐away, Funding Request for Homeless Youth Shelter delivery, and other innovative Funding Request from Family Promise services. Additionally, explore strategies that enable 4:00 p.m. Housing Assistance Update Ms. Walker‐Tolles businesses and Juneau’s economy to recover in the long 4:20 p.m. Business Stabilization Grants Update Mr. Rogers term. 3. Act as Liaison with the 4:30 p.m. Informational Item: Youth Activities Mr. Mertz Governor’s Alaska Economic Stabilization Team 4:40 p.m. Public Comment Matrix Ms. MacVay 4:45 p.m. Good of the Order Open 4:50 p.m. Adjourn Max Mertz, Co‐Chair • Linda Thomas, Co‐Chair • Susan Bell • Theresa Belton • Bruce Botelho Eric Forst • Ken Koelsch • Lauren MacVay • Laura Martinson • Terra Peters Page 2 of 45 Economic Stabilization Task Force Appointed by the City & Borough of Juneau’s Mayor DRAFT Meeting Minutes from September 24, 2020 Call to Order The Economic Stabilization Task Force meeting was called to order at 3:02 p.m. by Ms. Thomas. Task Force Members Present: Linda Thomas, Max Mertz, Susan Bell, Theresa Belton, Bruce Botelho, Eric Forst, Ken Koelsch, Lauren MacVay, Laura Martinson, and Terra Peters Task Force Members Absent: None Staff Present: CDD Administrative Officer, Brenwynne Grigg and CBJ Finance Director, Jeff Rogers CBJ Assembly Members Present: Mayor Beth Weldon, Loren Jones, and Alicia Hughes‐Skandijs Special Guest Speakers: President of Juneau/Lynn Canal CHARR, Jack Manning; President of Alaskan Brewing Company, Geoff Larson; and Executive Director of United Human Services, Joan O’Keefe Approval of Agenda Ms. Thomas stated that she would recuse herself from conversations around the following agenda items due to a potential conflict of interest:  COVID‐19 Testing Pilot Grant Proposal  Hospitality Industry Assistance Grant Request from CHARR Mr. Mertz will be stepping in as Chair for these two agenda topics. MOTION: by Ms. Bell to approve the agenda. Ms. Belton seconded the motion. Hearing no objections, the motion was approved. Approval of Minutes MOTION: by Mr. Forst to adopt the Economic Stabilization Task Force minutes from the September 10 meeting. Mr. Botelho seconded the motion. Hearing no objections, the motion was approved. Page 3 of 45 CBJ Revised Pie Chart re: CARES Act Funding Ms. Thomas introduced Mr. Rogers and asked him to update the Task Force on the status on expending the municipal allotment of CARES Act funding. Mr. Rogers shared an updated version of the CARES Act Pie Chart and Table, which has been used in many past Assembly meetings to inform discussions. This updated version removed all placeholder items and reported at a greater level of detail. Sections shaded in green represent funding already appropriated by the Assembly. Sections shaded in orange and yellow represent pending legislation. Mr. Rogers explained that some of the pending legislation listed is still in its generative phases; meaning ordinances are being drafted but have not been before the Assembly for introduction. Sections shaded in black represent the remainder of the CARES Act funding. Mr. Rogers introduced the possibility that some programs could expire with leftover funding, which could be repurposed if in time for the current December 30, 2020 deadline. Business Stabilization Grants Mr. Rogers shared that Mr. Holst gave notice that awards will exceed funding by approximately $2 million between Phases 1, 2, and 3 of the Business Stabilization Grants. Mr. Holst was preparing for the proration of grants based on Assembly guidance, and has done a great job informing staff and the Assembly of this. Due to the current state of things, the Assembly is considering an Emergency Resolution to fund the overage of $2 million. This would negate the need for proration and the delays caused by that. At the conclusion of the September 21 Assembly meeting, the City Manager directed JEDC to issue grant awards at 75% of their presumptive amounts to get funds into the hands of businesses quickly. The Assembly Finance Committee will discuss the Emergency Appropriation Resolution for $2 million at their September 30 meeting, and if they decide to move forward, could adopt the Resolution at the Special Assembly Meeting that directly follows. Mr. Mertz asked if there has been recent analysis to determine whether $2 million is a high or low estimate. Mr. Rogers stated that he has not heard, but other variables that are affecting this dollar value include nonprofits who originally applied for the Business Stabilization Grant, then also applied for the Nonprofit Sustainability Grant. Since nonprofit businesses may not double dip, this could free up some funds for other businesses. JEDC is still working out the details around this. Mr. Rogers is optimistic that $2 million will be enough. Mr. Mertz stated that theoretically, if the Assembly chose to fund everything currently on the table, they might still have $4 million in CARES Act money left. Mr. Rogers confirmed this is correct. Mr. Rogers stated that many across the nation have hoped Congress would allow States and local governments an extended timeline for which to spend the CARES Act funds. However, they have not seen any moving legislation to suggest this might be the case. The City is keeping a close eye on the topic, but unless something changes, the CBJ face paying for services currently being covered by CARES Act funding as of January 2021. Mr. Mertz asked about costs associated with continuing the Emergency Operations Center (EOC) if the CBJ is no longer able to use CARES Act funding to pay for it. Mr. Rogers shared a spreadsheet of current EOC costs. Monthly testing services at the Juneau International Airport, the Hagevig Testing Center, and other ad hoc testing centers, total $241 thousand in operations, while laboratory costs total $575,000. Laboratory costs are currently being paid by the State of Alaska, but the CBJ is unsure how long that will continue. Combined, the CBJ is potentially looking at $816 thousand a month to continue testing at its Page 4 of 45 current rate. Mr. Rogers is unclear how the loss of CARES Act funds on January 1, 2021 will affect current testing services. If Juneau is able to obtain testing equipment at Bartlett Regional Hospital, there will still be a cost associated with that. At this time, they are unsure of how that cost will compare to the costs of sending tests out to a private lab. In addition to testing costs, EOC expenses also include quarantine and isolation, sheltering in the Armory Building, the COVID hotline, PPE and supplies, wastewater testing, supplemental janitorial services, and a K‐5 Childcare Coordinator. Ms. Martinson asked to what extent Centennial Hall has seen use for quarantine and isolation to this point. Mr. Rogers replied the number is very small but he is unsure of the exact totals. He added that it is necessary to maintain a quarantine and isolation facility in the event that it is needed. Ms. Martinson asked how many people are staying in the Armory Building for sheltering. Mr. Rogers said on average, 50‐70 people per night. Some nights are as low as 30, but as we reach colder weather, we will see numbers increase to maximum capacity. Mr. Mertz asked if the FY21 allocation of CARES funds totaling 12.5 million is a benefit to the entire fiscal year instead of just July through December of 2020 from a cost standpoint. Mr. Rogers replied that yes, there is a benefit in balancing the FY21 budget, and this is in part how the Assembly did just that. This is reflected in the macro budget tool in past Assembly Finance packets. Since the CBJ is able to use CARES Act money to offset expenses in the Police Department and Fire Department budgets, this helped to offset some of the $16 million deficit from loss of sales tax revenue. The CBJ is losing at least $10 ‐ $12 million in sales tax this year and $15 million in Marine Passenger Fees from the summer. Mr. Mertz asked when the CBJ would begin estimating the FY22 budget. Mr. Rogers replied that analysis has already began, but officially, the budget process begins in November after the Assembly’s retreat, where they provide direction to the Manager on how to proceed with developing a more finalized budget. City departments begin preparing their budgets based on that direction in December, and budgets are introduced to the Assembly around the end of March or beginning of April 2021. Revenue projections are being currently being prepared, but will be further refined, as we get closer. The 2021 cruise season will have a large impact on CBJ revenues and there is still uncertainty around how that will look. Mr. Rogers stated that he heard from Mr. Charlie Ball, Executive Vice President for Land Operations and Customer Service at Holland America Group, and he is optimistic about the 2021 season. He believes that Alaska is an opportune travel destination, even in this environment. Even so, Mr. Rogers plans to project between 500 thousand and 700 thousand cruise ship passengers for the 2021 season at this time. Mr. Rogers added that when the local economy gains momentum in restaurants and entertainment facilities, this would have a large impact on sales tax revenue. At this time, he does not foresee any measurable decrease in property values, because the economic situation would have to become much direr. Ms. Bell stated that Juneau’s visitor volume and spending patterns are significant for the community, representing approximately 25% of the sales tax base. However, the State Legislative Session is also very important to our local economy. Ms. Bell added that the McDowell Group prepared an Analysis of Ward Cove Cruise Dock Impacts, published in June 2020, around this dock construction in Ketchikan. The report explains how variability in cruise passenger volume affects different aspects of the economy. In Ketchikan, property values in the downtown core were relatively stable in spite of that variability. She believes this information is also relevant to understanding patterns in Juneau and encouraged Task Force members to review the report, Page 5 of 45 which is a public document. Mr. Botelho asked where the CBJ would prioritize funds for 2021 should Congress extend the deadline for spending the CARES Act money. Mr. Rogers replied that testing and sheltering would remain a priority. Then, Police and Fire services would most likely consume the remaining funds. This path would allow the general fund to save the maximum amount of money to continue operations as normal. However, the Assembly ultimately decides and is responsible for balancing what is in the best interest of the public. COVID‐19 Testing Pilot Grant Mr. Mertz stepped in as Chair for the topic of a COVID‐19 Testing Pilot Grant, and Ms. Thomas recused herself from the discussion due to a potential conflict of interest. Mr. Mertz introduced Mr. Larson, President of Alaskan Brewing Company, who will speak on a grant request related to a COVID‐19 Monitoring and Testing Platform. Mr. Larson shared that Alaskan Brewing Company has been involved with providing hand sanitizer to the public, manufacturing a viral transport media for required testing protocols, and expediting rapid testing here in Juneau. During this time, Alaska Brewing has had discussions at the state and city levels on a number of ways to continue fighting this pandemic. The COVID‐19 Testing Platform that is being proposed is another way that could help fight this pandemic. Mr. Larson stated that this proactive solution monitors COVID‐19 in a way that prevents and contains the spread. Kallaco has created an IT platform, supported by testing, that is already in use at a number of Universities. Proactive testing, along with monitoring the health of individuals, is coordinated to respond quickly to a COVID‐19 case that might otherwise have larger implications. Participants will first acknowledge that their information will be shared with Alaska Brewing Company’s Human Resources Department. Then, they will take their temperature at least once a day; receive a prompting to answer seven health related questions; and input the data on a smartphone application. If there is a need for follow‐up, a message will be broadcast to staff of any information relevant to them, and close contacts will be followed up with for quarantine. In addition, routine testing will be conducted on a weekly basis. Mr. Larson emphasized that Kallaco balances the privacy of an individual with the public health need by tracking through analog analysis as opposed to GPS digital tracking. Analog analysis inquires about where you typically spend your time, and estimates your proximity to others. Alternately, digital tracking precisely monitors your every step. Alaska Brewing Company and several other businesses would like to test this program with the goal of moving to scale in the Juneau community if it proves successful. Mr. Botelho asked how this might work for the larger community. Mr. Larson replied that schools, for example, could potentially use facial recognition and thermal profiling to identify students and take their temperatures as they walk into the building. Mr. Larson added that participation among Alaskan Brewing Company employees is voluntary so this will be a good way of gauging how well a larger community might adopt this. MOTION: by Mr. Koelsch to recommend Emergency Appropriation Resolution 2910 for $175,000 to the Assembly. Mr. Forst seconded the motion. DISCUSSION Mr. Mertz asked how often antigen testing would be performed. Mr. Larson replied that antigen testing Page 6 of 45 would be administered weekly. If the antigen test registers a positive, there will be a follow‐up PCR test to rule out a false positive. Once a positive is confirmed, everyone potentially in contact will be tested every day or every other day for a period. By doing this, they hope to catch the virus prior to creating an environment in which many people are exposed to an infection. Ms. Martinson asked if the Pioneer Homes or other elder care facility is on the list of businesses that will be testing this platform. Mr. Larson replied that currently, the other businesses interested in testing the platform are those in the hospitality industry. The hospitality industry is especially motivated because they do not want closures due to an outbreak. Ms. Peters stated that a fast turnaround for test results is critical for business. Smaller businesses are struggling to maintain coverage when staff are quarantining up to 5 days, waiting test results due to having minor symptoms. Mr. Larson agreed but stated that monitoring for symptoms is just as important as testing in early detection of the virus. Mr. Mertz reminded the Task Force that there was a motion on the table and asked for any objections. Hearing no objections, the motion was approved. Post‐Secondary Education Grant Program Ms. Thomas resumed her duties as chair and asked Mr. Mertz to share an update on the Post‐Secondary Education Grant Program. Mr. Mertz shared that on September 14 the Assembly voted to move forward with spending additional CARES Act funds, and since then, has been fielding ideas. The Post‐Secondary Education Grant Program was created because many individuals who are trying to attend or return to school have been financially harmed by COVID‐19. This program would provide grants at $150 per credit hour, with a total award of up to $1,800 per student. The total funding amount for this program is proposed at $500 thousand. Recipients of the grant awards will need to meet certain income thresholds. Mr. Mertz stated that his intent is to introduce this topic to the Task Force, give them time to consider it over the weekend, and revisit the topic at the next Task Force meeting on Monday, September 28. Hospitality Industry Assistance Grants Mr. Mertz stepped in as Chair for this topic, and Ms. Thomas recused herself from the discussion due to a potential conflict of interest. Mr. Mertz introduced Mr. Manning, President of Juneau/Lynn Canal CHARR, who will speak on funding needed by industry businesses and employees affected by the various levels of COVID related closures, specifically mandated to the hospitality industry. Mr. Manning began by stating that the local Juneau Hospitality Industry has endured multiple closures and restricted openings throughout the course of the COVID‐19 pandemic. This has resulted in a great loss of perishable goods and product, an unstable employment base, and other unique challenges. As the fall and winter months approach, it is important to stabilize this industry, as well as provide a safe social outlet for the community in a controlled and regulate environment. The amount requested for this assistance program is $1.3 million, with $930 thousand directed at licensed businesses, and $370 Page 7 of 45 thousand to support qualified hospitality employees who are losing considerable wage due to a decrease in tips and scheduled hours. Mr. Manning stated that recently, the Anchorage Assembly approved $7 million in aid for hospitality and tourism industries, in addition to small business grants. Award amounts would be dispersed based on license type according to the chart below: License Type Award Amount Number of Licenses Beverage Dispensary Licenses (BDL) $30 thousand 18 Restaurant Eating Place Licenses (REPL) $15 thousand 17 Brewery / Distillery Licenses $15 thousand 5 Club / Rec / Seasonal Licenses $5 thousand 12 Mr. Botelho stated that the Task Force recently received a public comment asking why this program is needed when the hospitality industry qualified for the business relief already provided. Mr. Manning replied that the hospitality industry has been subject to State of Alaska and CBJ mandates that have required they close their doors repeatedly. Funding is needed to provide the staff and supply supports needed to be able to reopen their doors when they are mandated to close. Ms. Martinson appreciated this concept and added that it could be used as a model for assisting other industries that have been disproportionately impacted by COVID‐19. Ms. Bell asked if the number of business licenses represented in the memo also represents the total licenses in Juneau. Mr. Manning replied that it does – the numbers were pulled from the State of Alaska Alcohol Beverage Control data. Ms. MacVay agreed that unemployment claims support the need for assistance in the hospitality industry. She asked if there are other programs for industries significantly impacted, such as tourism and transportation. Mr. Manning was unsure, but added that employees in the hospitality industry suffer disproportionately because they are coming into contact with customers, and must quarantine if exposed, guaranteeing they lose wages because they are unable to work from home. Mr. Mertz added that he is unaware of other industries coming forward with similar requests. Mr. Mertz asked when a bar becomes a restaurant and vice versa. Mr. Manning replied that a bar has a BDL. Ms. Leeann Thomas, owner of The Triangle Club, was on the call with Mr. Manning. She stated that a restaurant has a REPL, which allows for beer and wine, but 50% of their revenue must be from food sales. A BDL may choose whether to have food. Therefore, some BDL’s are full bars with food and some have none. Mr. Mertz asked Mr. Manning to clarify that he is requesting the Task Force to recommend introduction of this grant request to the Assembly as an ordinance. Mr. Manning replied in the affirmative. Mr. Botelho stated that he is struggling with the equity issue, because there are employees in other industries that are impacted disproportionately. These industries could also choose to come forward and claim to be in the same situation, and he is interested in equal treatment. Were this to happen, this could expand the overall grant amount by two or three fold. Page 8 of 45 Ms. Martinson agreed with Mr. Botelho and advocated that the Task Force review unemployment data to target the hardest hit areas. Mr. Forst disclosed that he works in the hospitality industry and felt that he could share some additional insight into the situation the industries’ employees are facing. Much of employees’ wages come from tips, and when restaurants and bars are only open at 50% of their capacity, employees make significantly less income. Employees are also typically younger and have fewer resources than others have in more established careers. Additionally, the majority of the businesses being discussed operate year‐round and are not seasonal, which is another differentiating element from other industries. Mr. Mertz stated that he is sympathetic to bars and restaurants because they are facing unique costs other industries are not facing. For example, 1. Opening and closing with zero notice and how that impacts inventory; and, 2. Trying to sustain their workforce when dealing with these closures. Mr. Mertz feels comfortable recommending this proposal to the Assembly because of how the industry is uniquely impacted. The tourism industry is approaching its natural low point and they have known what they were dealing with. The bars and restaurants thought they were coming back online only to close again. However, he added that Ms. MacVay brings up a great point up and the Task Force may need a working group to survey the transportation industry and other industries. Ms. Bell suggested reviewing past grant recipients and labor data over the weekend and revisiting the topic at the Task Force meeting on Monday, September 28. Mr. Koelsch said the tourism industry has experienced hard times and has similar arguments as the hospitality industry. He suggested that any assistance should be inclusive of this as we move forward, and is in favor of discussing this more at the next Task Force meeting. Mr. Botelho asked if Mr. Kirby Day, Director of Shore Operations with Princess Cruises, could provide data regarding employment in the tourism industry. Mortgage and Rental Assistance Grants Ms. Thomas resumed her position as Chair for the meeting and asked Mayor Weldon and Ms. MacVay to speak on the Mortgage and Rental Assistance Grant proposal. Mayor Weldon introduced Emergency Appropriation Resolution 2911 for $2 million in mortgage and rental assistance. This assistance program is based on a similar program, which has been very popular, in Ketchikan. Currently, Mayor Weldon is considering Catholic Community Services to serve as the Grant Administrator, with administrative fees at approximately $30 thousand. Grant awards will be limited to one grant per residential dwelling unit with an award amount of $1,500. Household income must not exceed $94,240, and applicants must describe how they have been financially harmed. All awards will be paid directly to the lending company or landlord. Ms. MacVay stated there is currently little data around the community need due to the deferments and federal support that has supported the market since March 2020. She has conducted an informal survey among Alaska‐based financial institutions and reported they are all seeing the same thing. There is not much evidence of problems currently, but the need will manifest itself quickly as we move into October Page 9 of 45 and the winter months. Mr. Mertz asked how the Mayor and Ms. MacVay feel about the income threshold of $94,240 for Juneau, since Ketchikan’s income threshold was $68,000 in the first round. He stated that $94,240 is 80% of the area median household income (AMI) in Juneau as defined by HUD, and asked Ms. MacVay how she felt about that threshold. Ms. MacVay replied that given more time, she could take the unemployment numbers and pull earnings data to develop a better threshold. However, she does not believe the current threshold to be too high and feels it will capture the population that will be in need. Ms. MacVay added that the notion that people who earn higher levels of income have more in savings to bridge them through this pandemic is a bad assumption. The income bracket where people materially have more in savings is a substantially higher income bracket than those being discussed. Mr. Mertz stated that the household AMI in Juneau is $117 thousand. While Ketchikan’s original threshold was $68 thousand for the first round, they increased that threshold to around $90 thousand for the second round. He emphasized reaching the right group of people in need but cautioned against being so generous that everyone in town qualifies for the assistance, because the funds are limited. Mayor Weldon stated that she felt Ketchikan’s original threshold of $68 thousand was too low but also feels that $117 thousand is too high. Her concern is that a household of one earning $94 thousand is a good bit of money, but a household of two or more earning $94 thousand is not much at all. She feels that it would be wise to see the response to the program before increasing the threshold. Ms. Martinson asked if the household income threshold is based on 2019 taxes or actual projected 2020 income. She stated that many people went from a high income to zero income in year 2020. Mayor Weldon replied that this was a good question and they would have to give it some thought. Ms. Bell stated she would work with Mr. Jim Calvin, a Senior Economic Analyst, to see what kind of data they could bring to this discussion on Monday. Heating Fuel and Electricity Assistance Grants Ms. Hale introduced Emergency Appropriation Resolution 2909 as a Heating Fuel and Electricity Assistance Program for $1 million. She began by stating that receiving a PFD in July was great for many people, but many others rely on the PFD coming in October to heat their homes through the winter. She added that many even on the middle‐income spectrum live paycheck to paycheck. Applicants to this program could provide 2019 taxes and self‐certify how COVID‐19 has negatively affected them financially. She advocated for the income threshold to be set at the household AMI level of $117 thousand. She added that while we definitely need to care for those in the low‐income bracket, those in the middle‐income brackets can shift to low‐income in this type of environment and we do not want to see that. Mr. Mertz suggested that combining the mortgage and rental assistance with the heating assistance into one program with one application process could make sense and be simpler. He added that the Task Force might see a combined ordinance by their September 28 meeting at the $3 million amount. Ms. Hale shared that the award amount of $500 per qualifying applicant would cover much of the fuel and electric costs for November and December so people can fill their fuel tanks for the winter. Page 10 of 45 Mr. Koelsch stated he is in favor of the $117 thousand household income threshold at minimum, and does not understand why a threshold is needed if someone can show they have been financially negatively affected by COVID‐19. If a family is in need then they should be able to apply for assistance. He continued that Juneau has a very high cost of living, and children receiving their education at home have driven costs for families even higher. He does not feel there needs to be criteria to establish that families are hurting. Mr. Koelsch shared that in Skagway, citizens are receiving $1,000 a month without having to prove anything except that they will use it. Ms. Belton shared that many people are unable to survive an emergency today because they do not have $500 in savings. She added that the Central Council of Tlingit and Haida Indian Tribes of Alaska (CCTHITA) is starting an Education Assistance Program and a Household Expense Assistance Program. There is no income requirement, just self‐verification and proof of expenses. She added that tribal enrollment is around 32 thousand, which is similar to Juneau’s population. They have found that having only one application is ideal, because many do not have the technology needed to fill out a document on a computer and submit it. Instead, they are receiving photos of applications completed by hand. Ms. Hale stated that she appreciates this discussion, Mr. Koelsch’s perspective on the $117 thousand income threshold, and Ms. Belton’s point around many households who lack savings. She added that many people who are in need are not qualifying for assistance for one reason or another, and it is important to sustain the middle‐income households as well as help the low‐income households. Ms. Thomas asked for further suggestions on the program prior to moving this to the Assembly. Mr. Mertz suggested the Task Force spend some time considering the program over the weekend. Ms. MacVay will gather information around income as conversations continue on how broad the program should be. Mr. Botelho said it would be helpful to see how Juneau’s population of 32 thousand fits into the different income thresholds. This data would be helpful in balancing the availability of funds. Ms. Hale asked Ms. Belton if CCTHITA is issuing checks directly to tribal members or paying the mortgage lenders, landlords, and utility companies individually. Ms. Belton replied that some individuals have requested the checks go directly to their landlords, but most are receiving the funds directly. Ms. Hale stated that the CBJ program is currently structured to pay the fuel and electricity companies directly, but it causes her to question why we would not trust Juneau citizens to use the money the way it is intended to be used. Ms. Belton replied that they chose send payments directly to their tribal members because they live all over the United States, and this was more practical. Mr. Forst stated that by directing payments to the lenders, landlords, and utility companies, this provides some relief for those agencies as well, because they do not have to use resources to collect potentially late payments. Mr. Mertz agreed and added that it guarantees the money stays in Juneau; however, the other side of that discussion is that it frees up other income in the household just the same. Mr. Koelsch asked if the Task Force could see data on how much the program would cost if everyone who was eligible for the program applied. Ms. Bell stated she and Mr. Calvin would do their best to provide that information. Page 11 of 45 United Human Services Multi‐Tenant Nonprofit Center Funding Request Mr. Mertz introduced Ms. O’Keefe, Executive Director of Southeast Alaska Independent Living (SAIL) and United Human Services of Southeast Alaska, to speak on the funding request of $1.1 million to go toward the total project cost of $5.5 million to construct a multi‐tenant nonprofit center. Ms. O’Keefe thanked the Task Force and stated that this project, which is being called the Southeast Community Services Center, will be before the Assembly Finance Committee on September 30. She is asking the Task Force to provide a recommendation to the Assembly for the funding needed. Ms. O’Keefe began by stating that the United Human Services of Southeast Alaska, established in 2009, see their mission being accomplished through this project as it collocates social service agencies to create efficiencies, save money, increase sustainability, and build strong relationships. Their one‐stop model is to decrease transportation barriers and facilitate resource connections, which improves outcomes for their most vulnerable population. In 2019, SAIL collaborated with the Glory Hall to purchase property adjacent to St. Vincent de Paul. Their plan is to subdivide and build two separate but complementary buildings, with the vision of creating a campus of cohesive services. Based on extrapolating data from a report written by Rain Coast Data on the Glory Hall project in February 2020, this project is estimated to create 59 direct and indirect jobs during construction, and just over $3 million in direct and indirect wages. Mr. Forst asked if they would need to engage in additional fundraising efforts if they receive the $1.1 million from the CBJ. Ms. O’Keefe replied that CBJ investment would leverage funds from other agencies, because they are looking for community investment prior to granting awards. United Human Services has applied for $1 million from the Rasmuson Foundation, $350 thousand from the Mental Health Trust, and $350 thousand from the Murdock Foundation. Additionally, they have a capital campaign in a special fund account opened at Juneau Community Foundation. Mr. Mertz stated that this request is already before the Assembly, and the Task Force does not need to make an additional recommendation at this point, but could consider possibly discussing the economic impact at the next Task Force meeting on September 28. He added that a $1 million investment from the CBJ could turn into $5 million in construction jobs. Ms. Thomas shared that part of the Task Force’s strategy is to enable businesses, which include nonprofits, and Juneau’s economy to recover in the long‐term. She thanked Ms. O’Keefe for providing the economic impacts of the project to the Task Force for their consideration. The topic will be revisited on September 28, and the Task Force will decide whether they will provide written correspondence to the Assembly for the Finance meeting on September 30. Good of the Order Ms. Bell gave an update that she has created a framework for summarizing Task Force activities, and now she and Ms. Thomas need to come together and consolidate their information. They hope to bring it before the Task Force at their meeting on October 8 for review. Mr. Mertz shared that the Mayor has extended the work of the Task Force through the end of 2020 with the option of another extension. He added that once the current rush is resolved, meetings would scale back to every other Thursday. Page 12 of 45 Ms. Peters asked if anyone is aware of funding for employees who must quarantine for two weeks when businesses do not have sick leave to provide. Ms. Bell suggested looking into the Families First Coronavirus Response Act, which allows employers to receive a payroll tax credit if they continue to pay employees, were they unable to work due to COVID‐19. Mr. Mertz suggested researching this thoroughly because he is unsure of whether it applies to micro employers. Ms. Thomas informed the Task Force of a proposal that will come before them at their next meeting on September 28, entitled Safe Space for Children. This project is a collaboration of various religious congregations in Juneau that seek to provide extra space, Wi‐Fi connectivity, adult supervision, and tutoring services for students during the school day. Adjournment At 5:30 p.m., the meeting was adjourned. Page 13 of 45 Economic Stabilization Task Force Appointed by the City & Borough of Juneau’s Mayor DRAFT Meeting Minutes from September 28, 2020 Call to Order The Economic Stabilization Task Force meeting was called to order at 12:01 p.m. by Ms. Thomas. Task Force Members Present: Linda Thomas, Max Mertz, Susan Bell, Theresa Belton, Bruce Botelho, Eric Forst, Ken Koelsch, Lauren MacVay, Laura Martinson, and Terra Peters Task Force Members Absent: None Staff Present: CDD Administrative Officer, Brenwynne Grigg and CBJ Finance Director, Jeff Rogers CBJ Assembly Members Present: Mayor Beth Weldon and Loren Jones Special Guest Speakers: President of Alaskan Brewing Company, Geoff Larson; Executive Director of Juneau Community Foundation, Amy Skilbred; Executive Director of Catholic Community Services, Erin Walker-Tolles; and, Executive Director of Southeast Regional Resource Center (SERRC), Sheryl Weinberg Approval of Agenda Ms. Thomas noted that she would recuse herself from conversations around the following agenda items due to a potential conflict of interest:  COVID-19 Testing Pilot Grant Proposal  Hospitality Industry Update Mr. Mertz will be stepping in as Chair for these two agenda topics. Ms. Thomas asked to move the item, Nonprofit Grant Ordinance Including Food and Shelter Programs, after the approval of minutes on the agenda. MOTION: by Mr. Botelho to approve the agenda as amended. Ms. MacVay seconded the motion. Hearing no objections, the motion was approved. Approval of Minutes There were no minutes to approve. Page 14 of 45 Nonprofit Grant Ordinance Including Food and Shelter Programs Ms. Thomas introduced Ms. Skilbred, Executive Director of Juneau Community Foundation (JCF), who will update the Task Force on awards from the Nonprofit Grants that are being issued, those that overlap with the Business Sustainability Grant awards, and how an extended award might impact the total funding amount. Ms. Skilbred began by stating there were 48 applications submitted to the Nonprofit Grant Program with 47 grants awarded. One organization submitted two applications and JCF combined them into one grant. Under the rules for the application that was set forward, these applications resulted in $1.8 million in award. This award value represents over $7 million in documented need due to COVID-19 related damages. She elaborated that the grant awards take into account, and deduct, any funding received from the Business Stabilization Grant Program. Mr. Larry Persily was hired to manage the Nonprofit Grant Program for JCF. He has worked one-on-one with applicants to ensure all the information needed to establish damages was submitted. He also worked with the CBJ and the applicants to bring them into compliance as to their nonprofit tax status. Most of these nonprofits agencies are tax exempt, but compliance with the CBJ requires them to submit a form claiming their exempt status. After the grant award amount was totaled at $1.8 million, and since there were additional funds remaining in the program, Ms. Skilbred began to brainstorm on ways to meet more of the $7 million in need. She met with Mr. Rogers, Ms. Thomas, and Mr. Mertz to create a streamlined formula to meet the larger need. From there, they calculated an enhanced grant award that is being presented to the Task Force today. The original nonprofit award amount already deducts the Business Sustainability Grant award amounts. The enhanced grant award considers elevating applicants up one level from where they were originally eligible. Then, deductions are applied for any CARES Act funds they may have received, such as PPP funds as grants, or Alaska Community Foundation funds. This results in an enhanced total grant award of $2.41 million of the total $3 million that is available. Ms. Skilbred stated that this approach seems like a good approach to funding nonprofits who are able to demonstrate their need without requiring another round of grant applications for a Phase 2 of the Nonprofit Grant Program. Mr. Mertz asked about entities in the spreadsheet that are showing noncompliance with CBJ sales tax requirements. He asked whether they would receive a grant award. Ms. Skilbred replied that for these entities to become compliant, a form must be submitted to the CBJ. However, this is not to say that they owe back taxes, because they are tax exempt. However, the grant award will not be issued until the CBJ receives the paperwork that is needed. Ms. Thomas asked the Task Force to consider whether the enhanced grant amounts are reasonable and whether the Task Force should request this of the Assembly. Then if so, to discuss the details of how to administer the enhanced awards with CBJ Attorney. At this time, there is uncertainty whether allowance for the enhanced awards fall under the City Managers authority, or whether it needs to be requested before the Assembly. If a request to the Assembly is needed, their next meeting is October 26. Mr. Mertz added that there are three or four proposals from Family Promise, Southeast Food Bank, and others, who are requesting the residual funds from this program. He asked if there is harm in continuing fact-finding around additional proposals, in addition to the enhanced award amount, for evaluation at the Task Force meeting on October 8. Ms. Skilbred replied that recently she spoke with Pastor Tari Stage-Harvey from Shepherd of the Valley Lutheran Church, who is proposing a $175 thousand program for providing a safe place with WiFi connectivity for students in the mornings and afternoons so they can engage in their schoolwork. Shepherd of the Valley Page 15 of 45 Lutheran Church recently received $80 thousand from the Alaska Community Foundation on September 25. This program is different from programs covered under the Nonprofit Grant Program, because it is a new effort and not a stabilization for existing services. Ms. Skilbred and Pastor Stage-Harvey discussed using the school breakfast and lunch program to assist with food costs, which were originally budgeted at $44 thousand. This would reduce the remaining $95 thousand needed considerably, depending on how many of the children qualify for the school districts breakfast and lunch program. Ms. Skilbred also spoke to the Southeast Alaska Food Bank and they shared they do not need additional CARES Act funds because of their inability to spend it by the end of December 2020. Ms. Thomas suggested working out the details of the potential expanded nonprofit grant award, and the additional requests from Shepherd of the Valley Lutheran Church and the Southeast Alaska Food Bank, for presentation at the October 8 Task Force meeting. Ms. Skilbred replied that even with the expanded nonprofit grants, there would be $600 thousand left in the fund for potential reallocation to other programs, and she would like to see the expanded grants move forward. Mr. Forst stated that if the program were opened for another round, there might be nonprofits that would apply in the second round who should have applied in the first round and did not. Ms. Skilbred replied that she is not aware of many nonprofits who did not hear of the program and have an opportunity to apply. The advertisement of the program was quite extensive. She added that if there was a desire to fund a round of nonprofit grants to new programs, there might be demand. MOTION: by Mr. Botelho to recommend to the Assembly the expanded grant awards after deductions from other CARES Act grant awards. Ms. Martinson seconded the motion. OBJECTION: by Mr. Koelsch because he has not had adequate time to read the information submitted. WITHDRAW: Mr. Botelho withdrew his motion and tabled it to the October 8 Task Force meeting. The expanded Nonprofit grant award was tabled and will be discussed at the October 8 Task Force meeting. Ms. Skilbred asked if they should award the original grant amounts in order to issue funds to the nonprofits; then, if the expanded awards were approved later, they would be issued in a second payment. Mr. Rogers stated that another recommendation by the Task force is not needed to move forward with how the grant is written today. Mr. Mertz stated that for the record, there is consensus to issue the grant awards in their original amounts immediately. Emergency Appropriation: Mortgage, Rental, and Utility Grant Assistance Ms. Thomas asked Mr. Mertz to present on the Draft Emergency Appropriation Resolution 2912, appropriating up to $3 million for a COVID-19 Housing Assistance Grant Program. Mr. Mertz introduced Ms. Erin Walker-Tolles, Executive Director at Catholic Community Services (CCS), as the Page 16 of 45 Grant Administrator for this potential new assistance program. The Housing Assistance program is a combination of the mortgage, rental, and utility assistance programs presented at the last Task Force meeting by Mayor Weldon and Assembly Member Hale. This program concedes that eligibility is based on self-assertion of need due to impacts from COVID-19 and self-assertion of income. The application for this program will be written in a way that requires clear documentation of how they have been harmed financially and the reason for their need. Applicants would be eligible for $500 in utilities and $1,500 in rent or mortgage assistance. The expense period is from October to December 2020. This period was chosen to reduce the likelihood that a household would be unable to account for that level of expense in the designated period. Mr. Mertz added that the McDowell Group calculated estimates showing that roughly 50% of households in Juneau would be eligible for this program at the 80% area median income (AMI) level of $94,240. Ms. Martinson expressed concern that the application process could ask for 2019 wages as proof of income, when 2020 wages could be significantly lower. She is satisfied with the program moving forward as long as current wages are considered in the application to assess the need. Ms. MacVay expressed concern for this same issue, adding that the Ordinance is unclear whether current wages would be used to assess the need. Mr. Mertz stated that in the Resolution, it reads that you must have been financially harmed by COVID-19. The application will be developed around this premise. Mr. Palmer added that the applicant could self-attest, and the grant administrator can request additional information if anything in the application raises concern through Section 3(c)(6) Additional Information. Ms. MacVay noted a portion of Section 3(c)(3) Income. The household income must not exceed $94,240 She asked with the specificity provided, in what period does the income apply. Is it current 2020 monthly earnings annualized or 2019 wages documented in tax returns. Mr. Palmer replied that the language is currently vague and legislative intent can massage that. If the Task Force wants to be more specific they can be, but with more specificity comes more strict adherence to the rules and they could accidentally put themselves into a corner. Ms. Martinson suggested that applicants could provide a current paystub showing year-to-date income. Mr. Palmer replied that currently, these are self-attestations. The applicant only has to certify they make less than $94,240. If the grant administrator has to ask for proof of income, which the Ordinance allows for but does not require, it will slow down the process. Ms. MacVay referenced Section 3(c)(3) Income. Proof of income can be evidenced by the most recent tax return or other reasonable and verifiable information. Page 17 of 45 She suggested this implicates the $94,240 household income limit is speaking to 2019 income. She suggested removing that language in order to provide greater flexibility. Mr. Palmer replied that the Task Force could remove that language if it is the will of the body. MOTION: by Mr. Mertz to delete the following sentences from Section 3(c)(3) Income. Proof of income can be evidenced by the most recent tax return or other reasonable and verifiable information. The Grant Administrator shall not keep a copy of the income verification. Ms. Bell seconded the motion. Hearing no objections, the motion was approved. Ms. Thomas asked for Ms. Walker-Tolles’ comments as the Grant Administrator. Ms. Walker-Tolles said she spoke with James Johnson at Community Connections in Ketchikan on the details of their Housing Assistance Program. She likes the idea of keeping Juneau’s program flexible in terms of income. Despite the simplicity of the application form, there will still be numerous phone calls for follow-up documentation or questions. When there is simplicity and flexibility in a program, it allows the Grant Administrator to determine when to request additional information and when it is not necessary. There is still much work to do on the details of how to determine which mortgage company or utility company receives a check and the process around that. Ms. Bell stated that she prefers the simplicity of the combined programs. She thanked Mr. Jim Calvin, Senior Economic Analyst, for gathering information on employment and income. This data shows that according to the American Community Survey in 2018, 53% of Juneau households would have qualified for the program with the household income limitations. Mr. Koelsch believes the income threshold of $94,240 is too high of a barrier, and many households financially harmed by COVID-19 will not qualify for this program. With children at home during the school day and some parents working from home, there are additional costs in heating. For parents who are unable to be at home with their young children, there are additional childcare expenses that caught many families unprepared. He advocated for allowing these families to present their case for help if they exceeded the income limit. Ms. MacVay also expressed support for increasing the income limit or providing some level of flexibility for families that exceeded the income limit. Mr. Forst communicated concern that by raising the income level, this increases the pool of eligible people for the program. In turn, this increases the risk that the program may run out of funding and some in the lower income levels may not receive assistance when they need it the most. Ms. Thomas stated that the Assembly is requesting a recommendation from the Task Force today and added that if there are changes to the program, those changes need the support of the Task Force. Ms. Martinson asked how many households at the income level of 80% AMI are renters versus owners. She Page 18 of 45 added that the information may not be easy to access, but it could make a difference. Ms. Walker-Tolles stated that though this information is unknown to her today, CCS will collect data throughout the application process and will report out at the close of the application period. She asked that if the intent is to supply support to people who are financially harmed by COVID-19, what are the Task Force’s thoughts around those who have not lost income but have seen increased expenses for childcare due to schools being closed. Mr. Mertz stated that when over half of Juneau will qualify for this program, he believes the $94,240 threshold is too high. He would ask where the Task Force wants to target the need first? He feels the need is greatest at the bottom income rung. Mr. Forst stated that higher income levels may be at duress but they also have greater resources to deal with that duress than people do at lower income levels. Mr. Botelho replied that he would not vote to increase the income threshold, as he shares the view of Mr. Forst and Mr. Mertz. He would also speak against the idea of granting greater flexibility, since this creates an opportunity for increased arbitrariness. MOTION: by Mr. Mertz to recommend Draft Emergency Appropriation Resolution 2912, appropriating up to $3 million for a COVID-19 Housing Assistance Grant Program, with the modification adopted earlier. Ms. Bell seconded the motion. ROLL CALL VOTE ON MOTION Ayes: Bell, Belton, Botelho, Forst, Mertz, Martinson, Peters, and Thomas Nays: Koelsch and MacVay Motion passed. Eight (8) Ayes, Two (2) Nays Emergency Appropriation: COVID-19 Testing Platform Grant Ordinance Mr. Mertz stepped in as Chair for the Emergency Appropriation of a COVID-19 Testing Platform Grant, and Ms. Thomas recused herself from the discussion due to a potential conflict of interest. Mr. Mertz introduced Mr. Larson, President of Alaskan Brewing Company, for continued discussion on a grant request related to a COVID-19 Monitoring and Testing Platform, from the September 24 Task Force meeting. The newly drafted Ordinance is Emergency Appropriation Resolution 2910, appropriating up to $175 thousand for a grant to the Greater Juneau Chamber of Commerce to administer a COVID-19 Detection Platform. Mr. Larson was grateful for the opportunity to provide input with the ordinance language. He expressed the importance of having alignment between the CBJ, the Greater Juneau Chamber of Commerce, and participants in the program. He expressed two points for Task Force consideration. 1. He asked the Task Force to consider this pilot program as a test run for possible use with the entire community of Juneau. Page 19 of 45 2. Then, to consider the importance of safeguarding participant’s personal private information with more substantial language in the Ordinance. COVID-19 detection and monitoring programs have only become available in the last 7 months. Since they are yet untested, the risks are large. Mr. Larson stated that Alaska Brewing Company is risking potentially negative public relations by testing this pilot program, so they must have assurances that information will be private. If this pilot program is successful and expanded for use in the school system or legislature, there must also be assurances of confidentiality. The administrative costs to businesses are significant but volunteer businesses in the program feel it is in their best interest to keep business open. Mr. Botelho asked if the Ordinance is inadequate in how it addresses confidentiality in Section 3(d). Mr. Larson replied that he believes the language in the Ordinance is insufficient. He would ask for language stating that the inspectors of information, such as the Incident Commander, Planning Section Chief, and the State of Alaska, have the responsibility to safeguard personal and confidential information. Secondly, Mr. Larson would like language stating that, “nothing in this resolution allows any other confidential information from the businesses or individuals’ personal information to be released publically”. The intent is to bolster the responsibility of the inspectors to safeguard that information when inspected. Mr. Botelho also asked for recommendations on specific language he would insert into Section 3(a) Intent, which captures the vetting aspect. Mr. Larson stated he had proposed a paragraph in the intent language to vet the program, focusing more on its ability to mitigate COVID-19. The intent language should capture the spirit of having a proactive platform that creates personal awareness and monitors the virus. The benefit for the CBJ is to test this program at a very low cost to determine whether this might work to scale citywide. MOTION: by Mr. Botelho to recommend Emergency Appropriation Resolution 2910 to the Assembly, subject to City Attorney Rob Palmer, Mr. Geoff Larson of Alaska Brewing Company, Mr. Bruce Botelho and Mr. Max Mertz of the Task Force, refining the language of Ordinance prior to presentation to the Assembly. Ms. Bell seconded the motion. DISCUSSION Ms. Martinson asked if Alaska Brewing Company has received feedback from their employees on whether or not they are comfortable with participating in this program. Mr. Larson replied that in the last few weeks, leadership has discussed this program with every employee. We asked if they would support a testing and monitoring program to improve the health of employees at work. We have seen a resounding show of support for this. This was somewhat surprising, because in Alaska, we have many people concerned about their privacy. Mr. Mertz asked to hear from Mr. Palmer on whether the motion on the table is sufficient. Mr. Palmer stated that he could work with Mr. Mertz, Mr. Botelho, and Mr. Larson on revised language. He added that there is a basic understanding missing from this conversation. He stated there is no one in the CBJ, Public Health, or the community at large who believes his or her personal information should be shared. The point being discussed is if information is shared through this program to the State, Incident Commander, or Page 20 of 45 Planning Section Chief, what happens to the information at that point. Both entities are covered under the Alaska State Public Records Act, which prohibits sharing personal information. Therefore, just because the information may be shared with the State Department of Public Health, the Incident Commander, or the Planning Section Chief, they cannot share it further, except if there is a reason to share it further. For example, to prevent or mitigate the spread of a COVID-19 positive case. This is current practice and the Health Insurance Portability and Accountability Act (HIPAA) also currently provides for the dissemination of information through whatever means are needed to prevent the spread of a contagious disease. Mr. Palmer believes the language in the Ordinance currently provides for this, but if there is language that can be revised to provide further comfort to employees so they are willing to participate, then he believes they can find common ground. Mr. Botelho stated it might be good to provide reference in the Ordinance to the section in the Alaska State Public Records Act that provides for that confidentiality. Mr. Palmer said that could be included. Mr. Mertz asked for any objections to the motion on the table. Hearing no objections, the motion was approved. Post-Secondary Education Grant Program Ordinance Ms. Thomas resumed as Chair for the meeting and asked Mr. Mertz to speak on Draft Ordinance 2020-09(O), an ordinance appropriating up to $500 thousand for Post-Secondary Education Assistance Grants related to COVID- 19. Mr. Mertz introduced Ms. Sheryl Weinberg, Executive Director of Southeast Regional Resource Center (SERRC), as the Grant Administrator of the program if recommended by the Task Force and funded by the Assembly. SERRC provides educational support to school districts around the State of Alaska, and provides other educational programs supporting those returning to school, finishing their GED, or pursuing technical programs. He added that the Ordinance provides for assistance for enrolled students who were financially harmed by COVID-19, at the rate of $150 per credit hour up to 12 credit hours, to help defray the cost of post-secondary education. Mr. Mertz added that Ms. Weinberg had a suggestion to include computer support for parents of K-12 students who do not have the necessary technology in the home. Ms. Weinberg wished everyone Yom Kippur and appreciated the work the Task Force has been doing on health, education, and income stability for Juneau’s citizens during this time of COVID-19. She stated that the Ordinance aligns with the mission of the SERRC organization that Alaska’s learners, leaders, and educators are prepared to meet the future. It also aligns with the mission of their Learning Connection Program, which serves many vulnerable adults, including out of school youth who are 16 years and older, as well as adult learners. SERRC endeavors to help them have a better life through education. Ms. Weinberg would like to suggest expanding the scope of the Ordinance to include parents when determining eligibility. The school district has issued computers and connectivity for K-12 learners, but many parents have Page 21 of 45 indicated to SERRC that they have much learning to do themselves in order to support their young students with the technology and the academic content. Additionally, many households are competing for connectivity and computers now that their children are learning from home. Ms. Weinberg suggests to consider a household member that is supervising a K-12 student eligible and to consider connectivity an eligible expense up to $100 per month. Mr. Forst likes the Ordinance, and after performing some rough math, he sees this might service approximately 260 people if everyone received the maximum award amount of $1,800. He appreciates the addition of expanding the program to parents for connectivity assistance, but is concerned that it will overwhelm the program at its current funding level. Mr. Mertz thanked Mr. Forst for his comment and suggested moving forward with the current funding amount. Then, if the demand is such that the funding is quickly exhausted, he believes there will be time to expand the funding level. Additionally, if the Task Force were to adopt the recommended changes, it needs to specify that the award for parents to purchase a computer must be for a computer that is similar to the Chromebooks being purchased by the schools. MOTION: by Ms. Peters to recommend Ordinance 2020-09(O) to the Assembly as written. Mr. Forst seconded the motion. DISCUSSION Mr. Botelho stated that he had not originally understood that the focus was on parents and is puzzled by this addition, wondering if he misunderstood the intent. Mr. Mertz replied that Mr. Botelho was correct in his original understanding, but Ms. Weinberg is proposing this additional eligibility, and the question to the Task Force is whether they want to recommend the Ordinance as it is currently, or to expand the Ordinance to this other purpose. Ms. Thomas stated that there is a motion to approve the Ordinance as presented. She asked the Task Force if anyone wants to make an amendment to the motion to expand the program to include parents of K-12. Hearing no amendments to the motion, Ms. Thomas asked if there were any objections to the motion. Hearing no objections, the motion was approved. Ms. Thomas then asked if there was any interest in discussing the expanded program at the next Task Force meeting. Ms. MacVay asked if the school district has a program that will support this need of parents with K-12 students. There was uncertainty among the Task Force, but Ms. Weinberg does not believe the school district is offering support to parents of K-12 students similar to the suggestions provided for the expanded program. Mr. Mertz asked if this discussion could be included into the larger discussion of the Nonprofit Grant Program. Page 22 of 45 There was consensus to accept Mr. Mertz recommendation. Hospitality Industry Update Mr. Mertz stepped in as Chair for the Hospitality Industry Update and Ms. Thomas recused herself from the discussion due to a potential conflict of interest. Mr. Mertz stated that Ms. Martinson has been gathering input from various sources and asked her to present. Ms. Martinson stated that the fact-finding group, which consists of herself, Mr. Mertz, and Ms. Bell, has been examining ways this proposal from CHARR could work for the Hospitality Industry and be inclusive of other industries that are also disproportionately affected. There is still work to do and the proposal is not yet ready to bring before the Task Force. Mr. Mertz stated that the Task Force would have a more detailed update at their meeting on October 8. Good of the Order Ms. Thomas stated that Task Force meetings are tentatively scheduled at 3 p.m. on October 8 and 22. Ms. Martinson asked for an update at a future meeting from Mr. Bradley Grigg from Bartlett Regional Hospital on trends in the Behavioral and Mental Health Departments. Adjourn At 1:24 p.m. the meeting was adjourned. Page 23 of 45 Date: October 7, 2020 To: ESTF From: Concerned Business Coalition (CBC) Regarding: Funding for year-round operations suffering disproportionate extreme hardship For many businesses in Juneau, facing the prospect of keeping employees and the doors open during the upcoming winter months in a normal year is hard enough. But for those still open and trying to survive a loss of more than 50% in sales revenue during the summer months of July-Sept 2020 vs. 2019, this will be a winter that requires a lifeline to get through. Businesses that have endured the federal, state and city mandated closures, or even partial closures, are struggling to continue to employ locals and provide services as they enter the fall/winter season. They have suffered the increased costs of PPE and testing to provide Covid safety to staff and customers, as well as the costs of destroying perishable products when the mandates are enacted with no warning. They have experienced the loss of business in our normally thriving time of the year, and they have worked diligently to keep a least a bare skeleton of their businesses operational. But when the normal rate of cash sustaining income is cut by more than 50%, the considerations to remain open become stark. No doubt operations will be cutback, as many already are. But if the Juneau community hopes to keep from having huge swaths of our businesses completely boarded up for the winter, a lifeline will be needed. The CBC group is requesting up to $2 million in CARES community funds to be utilized by those businesses suffering disproportionate extreme hardship, and intending to continue operating and/or employing local residents during the winter ---- The funds would be distributed to eligible businesses in the form of a grant based on the following criteria: Extreme Hardship = A minimum of 50% loss of gross receipts during Q3 (July – Sept) 2020 as compared to Q3 2019. This amount would be verifiable using CBJ sales tax returns. Year-round Operations = Must be able to provide proof of operations in Juneau during Q4 2019 and Q1 2020. This would be verifiable via 941s or sales tax returns (in the case of sole proprietors) for those two quarters. Business in Good Standing = All local property taxes, sales tax and other fees must be current. 30% Grant to Payroll = Businesses must pledge to spend 30% of their grant proceeds on payroll expenses or employee benefits. Grant could be administered directly from CBJ as sales tax data is already within CBJ offices. We suggest a two- week application window. If grant is oversubscribed, grants would be proportionately reduced. Funding levels: It is anticipated the grants would be distributed as follows: Bar businesses w/o food (fully closed mandates) would receive $20,000 each. 14 x $20,000 = $280,000 Restaurants (partially closed mandates) would receive $15,000 each. 74 x $15,000 = $1,110,000 Other affected similarly affected businesses would receive $15,000 each. 40 x $15,000 = $600,000 Total grants to businesses disproportionately affected by mandated closures = $1,990,000 Total businesses receiving funds = 128 Page 24 of 45 October 5, 2020 Mayor Beth Weldon City and Bureau of Juneau (CBJ) 155 S. Seward Street Juneau, AK 99801 Re: Hurlock Avenue Property Dear Mayor Weldon, Tlingit Haida Regional Housing Authority (THRHA) is requesting COVID-19 funding from the CBJ for renovations to the property located at 9290 Hurlock. As you know, THRHA is working with the CBJ and Alaska Legacy Partners to transfer ownership of this property back to the CBJ to be operated by THRHA under a long term lease to provide housing for youth in need of transitional housing. Juneau has been without an emergency youth shelter for the past year. In and of itself this presents many safety issues for youth; however these issues have been exacerbated by the global pandemic we find ourselves living in. Access to safe emergency shelter for youth is now more critical than ever. Many homeless youth hop from place to place, staying with friends and strangers who may put them in unsafe situations, and bartering with their lives for a place to stay. The pandemic has made this type of “couch surfing” considerably less safe and many previously safe places to stay are no longer willing to let a youth crash on their couch due to social distancing needs. Because of this, we are already seeing an increase in teens using adult shelter spaces that are simply not safe or appropriate for them. We anticipate this need increasing as the social and economic impacts of the pandemic continue to hit our community. According to reports from the Centers for Disease Control and Prevention’s Youth Risk Behavior Surveillance System, youth experiencing homelessness have a higher risk of being in a gang, using heroin, feeling depressed, attempting suicide, or experiencing trauma and violence than their housed counterparts. There is no official census that has been conducted to determine the total number of runaway and homeless youth (RHY) in Juneau. The Juneau School District has consistently reported between 150-200 identified homeless students for the past several school years. A recent change in the McKinney Vento definitions lowered this number in the 2019-2020 school year to 85. This number is a known dramatic undercount of the RHY population in school. The school numbers also do not take into account youth who have dropped out or been expelled. We know the ratio of RHY in this population to be significantly higher than for those attending school, due to the social and economic hardships associated with high-school dropouts. Zach Gordon Youth Center provides outreach and navigation support to homeless teens and averages 40-60 teens annually, many of whom are not in school, again, we expect this number to rise in light of the economic impacts of the pandemic. Our target population for the shelter includes RHY ages 10 to 18. Currently, RHY spend time at Zach Gordon Youth Center (ZGYC) for meals and support, but most couch surf. The primary goal of the shelter is to provide RHY with immediate access to shelter and comprehensive services to maximize their safety, well-being, self-sufficiency, and adult permanent connections. Our shelter services will include emergency shelter, food, clothing for up to 21 days, counseling and support services, referrals, and aftercare—all within a Culturally Responsive, Trauma Informed, and Positive Youth Development framework. Page 25 of 45 Each youth will receive an initial health and safety screening and assessment, an individualized plan of care, counseling, and support services. We will actively engage parents and legal guardians, and provide family mediation to facilitate re-unification. Youth will receive educational and employment supports, skill development in areas such as basic living skills, anger management/positive communications, and substance abuse education. BCP youth will also receive referrals for behavioral health treatment as needed. The ZGYC drop-in center, which is already a popular place for RHY youth to spend time, will provide critical support pre and post discharge as well as serve as a place of intake. In order to provide the above services in a safe environment during this pandemic, updates to the building will include remodeling bedrooms to be single occupancy spaces in order to meet social distancing needs. Staff offices and youth congregate areas will be designed for social distancing needs as well. The building needs some repair work before it can be occupied. There is rot that needs to be repaired, and the degree of roof rot requires it to be replaced. The cost of replacing the roof and trusses on only the main building is $500,000. The are plumbing and electrical repairs needed, and the bathroom and kitchen need to be converted to ADA accessible. The budget for the renovation is $927,935. We have already applied for and received a HUD CARES Act grant for part of the renovations that must be expended by 6/30/21. The operations will be funded by the HUD Youth Homeless Demonstration Program grant . We plan to be operating and housing youth by the end of the year. Project Funding Summary: Reimburse Alaska Legacy Partners $165,000 Renovations $927,935 HUD CARES Act grant received $150,000 Funds remaining to be secured $942,935 THRHA is committed to the housing needs of Juneau and the outlying communities in Southeast and believes this proposal is a step in the right direction not only for the Hurlock property but for CBJ to address the needs of our homeless youth. Please feel free to reach out directly to me at jpata@thrha.org or 202-277-9146 with questions or concerns. We look forward to the CBJ’s response. Sincerely, Jacqueline Pata President/CEO Tlingit Haida Regional Housing Authority Page 26 of 45 Family Promise mission: Help families who are experiencing homelessness achieve sustainable long term housing through a community-based response. Family Promise of Juneau serves the Juneau area by providing food, shelter, and case management for children and their families who are experiencing homelessness; funds and case management for families who are at risk of becoming homeless; and support for graduate families so they remain housed. We also educate the entire community about the causes of homelessness the trauma experienced by families and how we as a community may respond to prevent it. In June, the board decided the core of our identity that needed to be sustained without any change in model was: • Serving families • Building bridges • Congregational rotation, volunteers and support • Respecting dignity of families We discussed the obstacles created by COVID-19 as: • Financing • Risk of spreading virus • Adapting to quick and big changes • Reduction in volunteer base • Available congregations for overnight hosting • Doubling up on space with day center and shelter The board decided unanimously that pursuing our own building for the day center was best for the short and long term efficacy of working with children and their families who are experiencing homelessness. The day center is currently housed at Chapel by the Lake. When this arrangement began, we had one full time position plus one part-time. We now have three full-time and three part-time positions. This expansion of staff has allowed us to serve 23 households through our homeless prevention program and 7 families through the shelter program so far in 2020. The three full-time positions are: Executive Director: Katti Carlson, MSW Homeless Prevention Program: Kate Wolfe Family Support Specialist: Vacant, interviews and selection nearly complete. ** This positions will be full time in coordination with St. Vincent’s and AHDC so families receiving their services may move from transitional housing into sustainable housing quicker and with increased success. The intensive case management helps families set goals and remain accountable to themselves for more sustained change in their lives. We do not duplicate current services in Juneau but seek to fill the needs that arise with guidance and support from other community providers. We currently provide a wraparound program approach so households may have a network of stable support for their particular situation. Our Page 27 of 45 case-management services are unique to each person and complement shelter services. This unique support is so successful that we will be providing case- management assistance to other agencies serving families within Juneau. Before COVID-19, we faced some challenges hosting at our day center in a congregation. Families spend the day at the day center taking showers, doing laundry and other things they would normally do during the day. Weekends were difficult with church activities overlapping with families need for space to be families. We have restrictions of building usage for our families for up to 5 hours daily. The space also lacks windows for the offices and the heat is a challenge. Our staff has to double up in offices, which can be difficult when sensitive meetings need to happen. We have done our due diligence with requesting extra space from Chapel and they lack the ability to meet our needs. With COVID-19, we needed to move to a static site program where families stay in one location for the night with paid staff. Congregational volunteers continue to bring meals on their regularly scheduled host weeks. Chapel by the Lake has been very generous in allowing us to expand our space so we can shelter two families and have our day center there, but this is temporary. This is not sustainable since Chapel is opening their space again for activities, we are at capacity with families, and having the day center and shelter in the same space makes it challenging for families to start the day. If we can move the day center to our own space, then we can expand our shelter capacity at Chapel until March when they expect to use their entire space again. This is an estimated timeframe and is review by Chapel and FPJ leadership on a monthly basis. COVID-19 impacted our mission by forcing us into a space that is too small and uncertain to serve families. Moving our day center into our own space makes it possible for us to serve more families with greater stability. Please see our plan for moving forward related to building purchase, community leverage and cost analysis. FPJ potential building purchase 2020 Total Purchase Price $350,000.000 CBJ Request $300,000.00 Gaguine Foundation $25,000.00 Request Board Fund Raising $25,000.00 Maintenance $3,500.00 (in-Kind) Washer and Dryer $1,500 (in-kind) Page 28 of 45 Current and potential building costs Current Current Rent $300.00 Monthly Staff time related to building $100.00 Monthly logistics Potential HOA Fees $522.00 (includes: water, sewer, garbage, insurance, snow removal, lawn and outdoor maintenance) Electricity $300.00 (doubled from previous tenant actuals) Insurance $100.00 We need to come up with $522.00 monthly in additional costs for this potential building. $200.00 Monthly in increased donations throughout the Juneau community. $200.00 Monthly from charity sales with EBay enterprise and Alaska Dames. $200.00 Monthly from increased access to grants now that we have been operating for more than 3 years. Page 29 of 45 Comparison of sector elements of the Juneau visitor industry 2016 Industry Businesses Total Wages Total Sales Jobs Ea7ng and Drinking 86 $17,184,296 NA 952 Full-Service Restaurants 24 $7,470,261 Both categories 357 Other Eateries 28 $7,118,130 $61.3 million 415 Coffee Shops 10 $995,128 na 79 Drinking Places (Alcoholic) 10 $1,600,777 $10.3 million 101 Food Truck 14 NA na na Retail Tourism 63 $7,176,426 NA 284 GiR, novelty, and souvenir stores 18 $2,206,825 $16.7 million 126 Jewelry stores 15 $2,036,071 na 54 Clothing and Clothing Accessories 30 $2,933,530 na 104 Tourism Transporta7on 38 $28,344,740 NA 754 Scenic and sightseeing 24 $12,473,299 na 370 Air transportaVon 10 $15,282,128 $24.5 million 361 Passenger car rental 4 $589,313 $5.6 million 23 Arts, Entertainment and 37 $7,011,977 na 368 Recrea7on Accommoda7on 21 $9,325,930 $33.4 million 411 Page 30 of 45 Juneau Businesses COVID-19 Impacts June Survey Total Businesses Responding = 130 Southeast Conference: Juneau breakout of Southeast Alaska Business Climate and COVID-19 Impacts Survey 2020 Page 31 of 45 Revenue Decline 2020 (through June) Please estimate the percent revenue decline to your business due to COVID-19 in 2020 so far (compared to same period in 2019)? Overall Average in Juneau = - 46% Page 32 of 45 Revenue Decline By Industry: Juneau Average percent revenue decline to your business due to COVID-19 in 2020 Arts Visitor or Tourism Other manufacturing Child Care, Education, Social Services Retail / Wholesale Trade Food/Beverage Services Real Estate Communications / Information Technology Professional & Business Services / Consultant Health Care Financial Activities Seafood, Commercial Fishing, Maritime Construction / Architecture / Engineering Other Non-profit Mining 0% 50% 100% Page 33 of 45 Is your business at risk of closing permanently because of impact caused by COVID-19? I'm already closed Yes - Significant risk Yes - Moderate risk Uncertain No - Not at risk 0.0 0.1 0.3 0.4 0.5 Risk of closing = 19% Page 34 of 45 Is your business at risk of closing permanently because of impact caused by COVID-19? Yes - Moderate risk No - Not at risk Yes - Significant risk Arts Mining Visitor or Tourism IT/Communications Child Care, Social Services Construction Food/Beverage Services Financial Activities Seafood Health Care 0% 25% 50% 0% 50% 100% “Uncertain” was also a potential response Page 35 of 45 Juneau Economic Outlook 2020: What is the economic outlook for your business or industry? 32% Positive 68% Negative Page 36 of 45 Juneau Economic Outlook: by Industry 2020: What is the economic outlook for your business or industry? Same (generally negative) Worse Much Worse Much Better Better Same (generally positive) Arts Food/Beverage Services Mining Visitor or Tourism Retail / Wholesale Trade Financial Activities Seafood 0% 33% 67% 100% 0% 50% 100% Page 37 of 45 Jobs Outlook in 2020 and 2021 Over the next 12 months, do you expect your organization to add jobs, maintain jobs, reduce jobs, or are you unsure? (For those business with staff) 2020: Juneau Jobs Outlook Page 38 of 45 Decreasing Jobs in 2020 and 2021 Over the next 12 months, do you expect your organization to add jobs, maintain jobs, reduce jobs, or are you unsure? (For those business with staff) Reduce total jobs Add jobs Retail / Wholesale Trade Health Care Visitor or Tourism Non-profit Child Care/Social Services Financial Activities Professional Services 0% 17% 33% 50% 0% 25% 50% Page 39 of 45 To: Rorie Watt, CBJ Manager CC: Jeff Rogers, CBJ Finance Director Mila Cosgrove, CBJ Deputy Manager From: Brian Holst, JEDC Executive Director Date: Wednesday, September 30, 2020 Re: Update on COVID19 CBJ Sustainable Business Grant Programs Reporting Period: Wednesday, September 23 to Tuesday, September 30 1. INTRODUCTION AND OBJECTIVES CBJ Assembly adopted Ordinance 2019-06 (AC)(b)(am) which provides for $3.5 million in grants to Juneau businesses experience financial hardship due to COVID19. Per the Ordinance, businesses must demonstrate Financial Hardship by showing a decline in business of 20% or more from 2019 to 2020. Once the qualify, they can then submit actual and estimated expenses for the period of April through August 2020 in three categories of “fixed” expenses: 1) utilities, 2) long-term debt, and 3) rent/leases. Thirty-three percent of those expenses, up to $33,000, can be granted to businesses, including non-profits. CBJ Assembly adopted Ordinance 2019-06 (AG)(d) which provides for $8.5 million in grants to Juneau businesses experience financial hardship due to COVID19. Similar to the Phase One Ordinance, this second ordinance, covering Phase Two, requires that business demonstrate Financial Hardship by showing a decline in business of 20% or more from 2019 to 2020. Some additional expenses qualify and there is a greater period of time for the application. Between Phase One and Phase Two, up to $99,000 can be granted to businesses, including non-profits. Additionally, an Small Business Express Grant (Phase Three) was including, permitting very small businesses adversely impacted by COVID19 to get awards up to $5,000 based on 2019 revenues. Overall, this program represents $12 million in assistance to Juneau’s small business community. 2. PROGRAM SECTION a. Summary of Main Activities CBJ Assembly adopted Ordinance 2019-06 (AC)(b)(am) on Monday, June 8. On Wednesday, June 17, JEDC received and signed an agreement with CBJ to operate the program. CBJ Assembly adopted Ordinance 2019-06 (AG)(d) on Monday, August 3. The Ordinance stipulated that a three week application would begin by August 10. JEDC opened a portal for new applications on August 10 that will extend through August 31. Additionally, JEDC has created an abbreviated application for businesses that have already applied for a Phase One award so that they only need to add additional information that might lead to a higher average award. b. Significant Events and Accomplishments • JEDC has received 245 applications for Phase One. • JEDC has rcevied 422 application for Phase Two/Three. Phase One Summary Page 40 of 45 • CBJ has reviewed tax compliance for all Phase One applications and about 360 of the Phase Two/Three applications to date. • The 206 businesses with approved grants have 672 part-time and 785 full-time positions during the period of April through August 2020, as reported/estimated by each applicant. This data is voluntary for the applicant. Full-Time Part-Time CBJ Phase 1 Grant Status as of 9.29.2020 Applications Dollars Jobs Jobs Total Active 245 827 687 Post Approval 206 $ 1,983,414 785 672 Money Sent 197 $ 1,928,359 736 646 Documents Sent 6 $ 45,799 46 26 Eligibility Report Sent 0 $ - 0 0 Approved 3 $ 9,256 3 0 Pre Approval 16 42 15 Not Active (Duplicate, Disqualified, Withdraw 23 Phase Two and Three Summary The application period for Phase Two/Three closed on Monday, August 31. We are processing those applications. We received a total of 422 applications in this period. We have made initial calculations for the 360 applications that we have tax compliance information from CBJ. Due to a miscommunication, both CBJ and JEDC believed all tax compliance was completed last week. It is still in process. The total program needs another $2 million to meet the funding requests. On September 21, the Assembly considered and postponed a decision to add an additional $2 million to the program until October 1. CBJ Manager authorized JEDC to make partial grant awards on Tuesday, September 22. Later that day, JEDC initiated partial awards and has disbursed $3.5 million c. Anticipated Challenges/Problems/Opportunities/Recommendations • None. 3. ADMINISTRATIVE SECTION JEDC is tracking its programmatic costs in detail. • JEDC personnel has invested 2000+ hours of effort to date on Phases One, Two and Three. Page 41 of 45 Potential CBJ Allocation of CARES Act Funds FY21 COVID‐related Emergency Operations, $12,500,000 Business Sustainability Grants ‐ Ph 2 & 3, $8,500,000 Uncommitted, $3,336,188 FY20 COVID‐related Emergency BRH Patient Intake & Triage Operations, $8,000,000 Planning, $400,000 Hospitality Industry Assistance Grants, $1,500,000 Wastewater COVID Testing Program, $75,000 AML Supplemental Billing, $130,979 Kallaco Company COVID‐19 Detection Platform, $175,000 Business Sustainability Grants ‐ Phase 1, Rental Assistance, $200,000 $3,500,000 Art Sustainability Grants, $300,000 TJ "Juneau Cares Campaign", $383,775 Airlift Northwest Support, $500,000 Non‐Profit Organization Sustainability Grants, $3,000,000 FY21 JSD RALLY Support, $600,000 FY21 JSD COVID‐19‐related Operations, $700,000 Housing Assistance Grants, $3,000,000 COVID Testing Equipment & Operations, $700,000 Business Sustainability Grants Supplemental Funding ‐ Ph 2 & 3, $2,000,000 Juneau Conservation Corp Program, $1,000,000 Childcare Support, $1,057,000 FY21 JSD CARES Supplemental Request, $1,653,000 Page 42 of 45 Potential CBJ Allocation of CARES Act Funds Appropriation Amount Running Committed: FY21 COVID‐related Emergency Operations $ 12,500,000 Business Sustainability Grants ‐ Ph 2 & 3 $ 8,500,000 FY20 COVID‐related Emergency Operations $ 8,000,000 Business Sustainability Grants ‐ Phase 1 $ 3,500,000 Non‐Profit Organization Sustainability Grants $ 3,000,000 Housing Assistance Grants $ 3,000,000 Business Sustainability Grants Supplemental Funding ‐ Ph 2 & 3 $ 2,000,000 FY21 JSD CARES Supplemental Request $ 1,653,000 Childcare Support $ 1,057,000 Juneau Conservation Corp Program $ 1,000,000 COVID Testing Equipment & Operations $ 700,000 FY21 JSD COVID‐19‐related Operations $ 700,000 FY21 JSD RALLY Support $ 600,000 Airlift Northwest Support $ 500,000 TJ "Juneau Cares Campaign" $ 383,775 Art Sustainability Grants $ 300,000 Rental Assistance $ 200,000 Kallaco Company COVID‐19 Detection Platform $ 175,000 AML Supplemental Billing $ 130,979 Wastewater COVID Testing Program $ 75,000 $ 47,974,754 Pending Legislation: Hospitality Industry Assistance Grants $ 1,500,000 BRH Patient Intake & Triage Planning $ 400,000 $ 49,874,754 Uncommitted $ 3,336,188 Total $ 53,210,942 Page 43 of 45 Page 44 of 45 Page 45 of 45 Public Comment Summary October 7, 2020 New Comments since September 23rd