City Council Meetings

Watertown City Council Mayor Steve Washburn Deborah Everson Lindsay Guetzkow Adam Pawelk Michael Walters 12/23/2020 - Minutes 1. Call To Order And Roll Call The joint Economic Development Authority and City Council meeting was called to order by Mayor Steve Washburn at 9:35 a.m. on Wednesday, December 23, 2020 via Zoom. EDA members present: Roxanne Wilmes, Ken Grotbo, Lindsay Guetzkow, Deborah Everson, Cory Mitteness Council Members present: Mayor Washburn, Michael Walters, Lindsay Guetzkow, Deborah Everson, and Adam Pawelk Staff Present: City Administrator Shane Fineran and City Clerk/Treasurer Lynn Tschudi 2. Adopt Agenda EVERSON MOVED, WALTERS SECONDED A MOTION TO ADOPT THE AGENDA AS PRESENTED. ALL PRESENT VOTED AYE. MOTION CARRIED 5-0. 3. Consent Agenda Discussion And Approval 3.A. Transfer Of Unrestricted Fund Balances To Capital Investment Funds City Administrator Fineran said there are unrestricted fund balances identified in the water, sewer and general funds from the 2019 audit. Staff is recommending the transfer of these funds to the capital investment funds prior to the end of 2020. WALTERS MOVED, GUETZKOW SECONDED A MOTION TO ADOPT RESOLUTION 2020-153, APPROVING THE TRANSFER OF UNRESTRICTED FUND BALANCES IN SEWER, WATER, AND GENERAL OPERATING FUNDS. ALL PRESENT VOTED AYE. MOTION CARRIED 5-0. 4. New/Old Business 4.A. Coronavirus Business Relief Grant V.2 And Other City Support Efforts. City Administrator Fineran said on December 16, 2020, State Legislature passed additional relief measures for businesses impacted by the second shutdown under Executive order 20-99. Fineran said this is primarily affecting restaurants, bars, and fitness centers and that meet certain requirements related to filing status of sales tax and revenue loss. This program will provide between $15,000 and $45,000 in grant funds dependent upon the number of employees. 4.A. Coronavirus Business Relief Grant V.2 And Other City Support Efforts. City Administrator Fineran said on December 16, 2020, State Legislature passed additional relief measures for businesses impacted by the second shutdown under Executive order 20-99. Fineran said this is primarily affecting restaurants, bars, and fitness centers and that meet certain requirements related to filing status of sales tax and revenue loss. This program will provide between $15,000 and $45,000 in grant funds dependent upon the number of employees. Fineran also explained the Carver County CDA will offer a grant program similar to the program developed in the fall. The program will provide up to $20,000 in grant funds on a rolling basis to eligible businesses. Fineran said the application portal will open on January 1, 2021 for qualified businesses. Disbursements could occur in early to mid-January. Both state and county programs have disbursement in January, which may not be soon enough for some businesses. To help meet the need of the impacted businesses, staff is proposing a second Coronavirus Relief Grant program for the businesses impacted by the recent shutdowns. The program would provide $5,000 in grant funds, as a bridge to larger assistance that is coming available at the county, state, and potentially federal level in January. Staff is proposing a maximum of $50,000 be allocated to the proposed program. Fineran said if approved, the program applications would be accepted immediately and could be disbursing assistance the week of December 28th. Funds could be disbursed on a rolling basis as applications are received. The application period would run until January 8, 2021. Washburn said he spoke to the Chamber of Commerce president and he expressed that one of the business owners’ largest hurdles is cash flow. Business owner Mario Cortolezzis said that he has personally infused his business with over $20,000 to make payroll. He said the revenues for Mario’s Italian Kitchen are down 60% from this time last year. Cortolezzis fears he may not be able to stay open past February without serious help. Council Member Walters asked Fineran how many businesses would qualify for the grant. Fineran said there would be around ten businesses affected by Executive Order 20-99. Walters is in favor of the grant program as well as doing an additional Chamber Check program. Council Member Pawelk has reservations on another Chamber Check program due to the timing and how long it could take the businesses to see the revenue. Pawelk would propose increasing the grant amount rather than issuing the Chamber Checks. Council Member Guetzkow supports both programs but would like to focus on the direct support to the businesses before year-end. She asked if the City of Watertown grant would make any business ineligible for the CDA grant. Fineran said the businesses would be eligible for both grants because we are not using the same source of funds. Guetzkow asked if $50,000 is allocated to the program for $5,000 individual grants, and only five applications are received, could the remaining monies be re- invested? Fineran said the way the resolution is written the funds could be used for a similar program. Council Member Everson asked Fineran if he has determined if $5,000 will be enough for these businesses to bridge the gap. Fineran said the owners he spoke with said it will be helpful, but it will not be enough. Everson asked for clarification on the resolution. Fineran said it states there will be $50,000 transferred from the General Fund to the EDA to administer programs for business relief. EDA Chair Ken Grotbo proposed offering a higher grant amount now or revisiting an additional program after the first of the year for the businesses affected. EDA Member Roxanne Wilmes would like to see more focus on the grant program rather than the Chamber Checks. Then the suffering businesses are guaranteed to receive the funds. EDA Member Cory Mitteness is in favor of the Chamber Checks program because it helps residents who are struggling and bring revenue to businesses. Mitteness suggested having a meeting with all business owners to hear what they have to say regarding their struggles and what they need. Fineran asked if the group would like to amend the application to a larger grant of $7,500 by utilizing some EDA funds as well as taking a hard look at a Chamber Checks program the first couple weeks of January. Washburn clarified the resolution transferring funds would remain the same, but the EDA resolution would change to reflect an increase in the grant amount.  Fineran asked if the group would like to amend the application to a larger grant of $7,500 by utilizing some EDA funds as well as taking a hard look at a Chamber Checks program the first couple weeks of January. Washburn clarified the resolution transferring funds would remain the same, but the EDA resolution would change to reflect an increase in the grant amount. GUETZKOW MOVED, EVERSON SECONDED A MOTION TO ADOPT RESOLUTION 2020-154, AUTHORIZING THE TRANSFER OF FUNDS TO THE ECONOMIC DEVELOPMENT AUTHORITY. MOTION CARRIED 5-0. MITTENESS MOVED, WILMES SECONDED A MOTION TO ADOPT RESOLUTION 2020-14EDA, ESTABLISHING EMERGENCY ASSISTANCE ECONOMIC DEVELOPMENT PROGRAMS FOR LOCAL BUSINESSES IMPACTED BY THE COVID-19 PANDEMIC AND TO AMEND THE APPLICATION TO INCREASE THE GRANT AMOUNT TO $7,500. ALL PRESENT VOTED AYE, MOTION CARRIED. City Administrator asked for direction on a future Chamber Checks program. The Council and EDA are all in favor of a future discussion on issuing Chamber Checks to residents 5. Adjournment EVERSON MOVED, WALTERS SECONDED A MOTION TO ADJOURN THE JOINT CITY COUNCIL/EDA MEETING AT 10:52 AM. ALL PRESENT VOTED AYE, MOTION CARRIED. 309 Lewis Avenue South; P.O. Box 279, Watertown, MN 55388