Economic Stabilization Task Force (Sunset January 2021)

Regular Meeting

Juneau, AK · November 19, 2020

Minutes

Economic Stabilization Task Force Appointed by the City & Borough of Juneau’s Mayor Meeting Minutes from November 19, 2020 Call to Order The Economic Stabilization Task Force Meeting was called to order at 3:01 p.m. by Linda Thomas. Task Force Members Present: Linda Thomas, Max Mertz, Lauren MacVay, Laura Martinson, Susan Bell, Eric Forst, and Ken Koelsch. Task Force Members Absent: Theresa Belton, Bruce Botelho, and Terra Peters Staff Present: CBJ Finance Director, Jeff Rogers; Budget Analyst, Adrien Speegle; CBJ Administrative Assistant, Jensina Sundberg. CBJ Assembly Members Present: Loren Jones Special Guest Speakers: Executive Director of Catholic Community Services, Erin Walker-Tolles; Director of Shore Operations for Princess Cruises, Kirby Day. Approval of Agenda Ms. Thomas suggested an agenda change moving the Housing Assistance Grant update towards the end of the program so that Ms. Walker-Tolles could join as a guest speaker. Ms. Thomas asked for any other suggested changes to the agenda. MOTION: Ms. Thomas asked for any objections to the proposed agenda change. Hearing no objections, the motion was approved. Approval of Minutes MOTION: by Ms. Thomas to approve the Economic Stabilization Task Force meeting minutes from November 9, 2020. Mr. Forst seconded the motion. Hearing no objections, the motion was approved. Extreme Hardship Grant Mr. Mertz stated that he and Mr. Rogers had a conversation concerning the eligibility criteria contained in Section 4(c)(3) of Ordinance 2020-09(U)(b). Mr. Mertz affirmed that this section requires businesses to have suffered at least a fifty percent loss in gross receipts for out-of-borough sales as well as in- borough-sales. Mr. Mertz proposed that grant applicants might be better served if the grant focused on local, net taxable revenue rather than gross receipts. Mr. Mertz then asked Mr. Rogers if he would like to add to this idea. Mr. Rogers stated that using taxable sales in the calculation does not include the eligibility of sales that are exempt. The most significant exemptions are goods for resale, out of borough sales, and non-profit sales. He reiterated that initially using taxable sales made more sense, as it was a direct connection to CBJ revenue. The shift towards gross sales was intended to include businesses such as wholesalers, distributors, non-profits, and exporters who may have had a large volume of gross sales but not taxable sales. Mr. Rogers predicted that there are going to be winners and losers either way, and it is likely that moving to gross sales will induce a different set of issues for specific businesses. Using gross sales as a measure is a more broad approach, whereas taxable sales are a better approximation of sales that generate municipal revenue. Mr. Rogers reflected back to the original purpose of the ordinance, to assist industries that have been disproportionately affected by the COVID-19 pandemic: examples include hospitality, tourism, and service industries. Most of these industries qualify better under a taxable model, as most of the business they perform is taxable rather than exempt. He expressed that he has questioned whether it was possible to use both taxable and gross, however due to the proportionality that is not a feasible option. He stated it is necessary to have some metric for the proportionality, therefore it is not possible to use either taxable sales or gross sales. Mr. Rogers concluded that he is comfortable using either taxable or gross sales as an eligibility requirement. Ms. MacVay asked whether it is possible to have an exception for businesses that may not qualify under the taxable sales eligibility requirement, but are profoundly impacted and would qualify under gross sales. Mr. Rogers responded by stating that an exception process can work, though it is hard to say how this would affect the calculation. A business could be qualified based on taxable or gross sales, however ultimately the proportionality determination will be based on the eligibility requirements in the ordinance. Ms. Martinson asked if it is possible to specify the exemption, specifically for retailers that do online business during the winter. Mr. Rogers expressed that it is possible to draw out a more complex criteria for eligibility and for proportionality, though doing so would create additional complexities and subjectivity within the ordinance. Mr. Mertz responded to Ms. Martinson by stating that most sales are happening inside the borough, and that out-of- borough sales may not have a significant impact, as most small local retailers often cater towards tourism during the summer months. He added that the denominator is being inflated when adding gross sales, potentially skewing towards the larger businesses. He asked Mr. Rogers if any of the bigger distributors have qualified for the Business Sustainability Grant. Mr. Rogers expressed that it does not appear many large, conventional wholesalers and distributors have applied for the Business Sustainability Grant Program, or that they were not qualified. Mr. Mertz agreed in saying that it is important to have either taxable or gross sales, and elaborated on the idea of ‘one-off’ exception considerations to make sure impacted businesses are not being excluded. This would involve changing the exception language in Section 4(g) of the ordinance. An exception might allow a business to qualify that mathematically was excluded under taxable sales. Mr. Rogers summarized the proposed change by confirming that the Task Force has indicated that its desire is for businesses to qualify primarily under the taxable basis. It is possible for a business, as necessary, to qualify under gross, if the City Manager and grant administrator believe it to be warranted. The proportionality calculation will happen on a taxable basis, even for those businesses that qualified on a gross basis. MOTION: by Mr. Koelsch to amend Section 4(c)(3) of Ordinance 2020-09(U)(b) to strike “gross receipts” in the first sentence and replace it with “net taxable sales.” This change will also need to be incorporated in section 4(f) of the ordinance. The Task Force will include in their recommendation to the Assembly that they underscore the Manager’s authority to allow for an exception for those who wish to apply, yet have been mathematically excluded due to the change from gross sales to net taxable sales. Mr. Koelsch asked for unanimous consent. Hearing no objections, the motion was approved. Task Force Review Ms. Bell brought forward a proposal for an end-of- year Task Force report for the Assembly and the public. She stated the report is intended to provide some context to the Economic Stabilization Task Force Charter and work approach, the committee members who served, and the number of initiatives that were recommended. Ms. Bell agreed to edit and finalize the document once information was compiled. Mr. Forst agreed that the Task Force review was an important document to compose, as it would give some historical context to people who may look back on this committee in the future as a ‘road map’ in the case of another crisis. Ms. Thomas mentioned that pulling information from the previous meeting minutes would be tedious, and asked if the committee could divide up the workload for greatest efficiency. Ms. Bell agreed that fact-finding groups should work together to gather information, as these groups had been previously designated and assigned. Ms. Thomas stated that it was a good idea to compile information before the next meeting (December 3, 2020) so that there is time for review, as there are only two meetings remaining before the end of the year. Public Comment Matrix Ms. MacVay stated that they did not receive any new comments from the public since the last meeting, therefore no Public Comment Matrix is presented. Good of the Order Ms. Thomas asked if there as anything that the Task Force believed needed to be addressed to be completed or analyzed before year end. Delinquency Rates Ms. MacVay mentioned that she was digging into delinquency rates, and stated that Juneau’s delinquency rates are higher than other Southeast Alaskan communities by a significant margin. She stated that the city delinquency rate is about 7.35%. She questioned the composition of that specific portfolio and what is being counted as delinquent, as well as other unknown variables. Ms. MacVay said that if this Task Force does get reconstituted next year with a new round of stimulus, housing will need to be analyzed as it will be a continued stressor and priority. Mr. Mertz asked Ms. MacVay if this percentage has gone up. Ms. MacVay responded that city delinquency rates have increased. Across the board, state data (up to September 30, 2020) indicated delinquency rates were still within expected margins. With this year being a large anomaly, however, it is hard to compare from previous data. Child Care Ms. Martinson touched on daycare centers for children who are not yet in kindergarten, stating that most of them are running at about 50% capacity. This is largely due to an abundance of caution from both staff and parents, and due to staffing difficulties at the care centers. Staffing issues are stemming from a combination of concerns due to COVID-19, employees who are more comfortable collecting unemployment, and from the work being low-wage and unbenefited. This is an issue that the community will continue to face, and most daycares do not have enough staff to operate at full capacity even if they wanted to. There is an ongoing survey for parents with children in kindergarten through fifth grade with about 500 respondents being sorted through. There are still fewer than 40 youths enrolled in RALLY; there will be more information on this topic once the survey results are in. Ms. Martinson spoke briefly on some churches in the community implementing safe space ‘bubble learning,’ stating that this strategy appears to be going well. Staffing Ms. MacVay stated that as employers, a large issue has been managing staff who have been exposed to COVID-19. She added that once new testing is available in December it would be beneficial to have an outreach guideline (potentially joint with the Juneau Chamber of Commerce) concerning how to handle staffing practices. She hopes that there will be more certainty once testing becomes more rapid. Extreme Hardship Grant Mr. Forst asked Mr. Rogers to update him on the process of the Extreme Hardship Grant timeline. Mr. Rogers responded by saying that the ordinance will be up for public hearing and adoption at the Monday, November 23 2020 Assembly Meeting. If the Assembly adopts the ordinance, the Juneau Economic Development Council, (JEDC) will take action as rapidly as possible, standing up an application process most likely within a week to 10 days. There is an advantage in that everyone who applies to the program, based on the language in the ordinance, will already have received a grant through either JEDC or the Juneau Community Foundation. Not having to address new circumstances will help speed up the application approval process. Mr. Rogers stated that he engineered the proportionality calculation, and he will help the process move along as smoothly as possible. Mr. Rogers expressed that JEDC is doing well and moving as quickly as possible, however they have a lot on their plate. The decision to move through JEDC was a staffing decision. Disbandment Mr. Koelsch began by stating that the Task Force will be disbanded December 31, 2020 unless there is an extension. Mr. Koelsch mentioned that it is necessary to be cognizant of passing on suggestions and information to whomever may be taking the place of this committee. He added that someone will need to closely follow the bond package, and he wondered whether there is a timeline for projects such as the school roofing. He expressed concern for what will happen after December 31, 2020 once programs and projects that were receiving funds will no longer be receiving them, and may be without guidance. Mr. Rogers responded to Mr. Koelsch, stating that the bond package went in front of the Public Works and Facilities Committee on Monday, November 16, 2020. The bond package will also be on the Wednesday, December 9, 2020 Assembly Finance Committee meeting’s agenda for review. He elaborated that there likely will be an advance on bond proceeds for Public Works and Engineering to begin the design of work projects. The rapidness of these projects commencement directly correlates with contractors’ local staff capacity. Currently, the contractor community is fairly tapped. Once capacity is exceeded, it is common to get project bids back that are unrealistic, as they are coming from out-of- borough. Mr. Rogers stated that the Public Works and Engineering department believes the projects will be complete within the next two to three years. Mr. Mertz added onto Mr. Koelsch’s concern, hypothesizing that given the political state in Washington, D.C., it is highly unlikely that there will be additional stimulus between now and Inauguration Day. He reiterated that there will be a significant amount of stress in the community during this time, and asked what will happen to businesses in town once the liquidity in the market breaks down and whether Juneau is aptly prepared. Housing Assistance Grant Update Ms. Walker-Tolles provided an update on the Housing Assistance Grant Program. She stated that Catholic Community Services has requested CBJ disburse just under $700,000 for eligible grant applications. This is currently for 379 households. She stated that overall 1,250 applications have been received thus far, with about 600 more applications to process. Ms. Walker-Tolles mentioned that an interesting population group is composed of those who are unemployed not due to COVID-19, which raises the question of eligibility. She elaborated that people who are unemployed are eligible as long as they can prove they made a good faith effort to find employment, though checking this eligibility factor requires more extensive follow-up. Ms. Walker-Tolles reiterated that this program is intended for folks who actively searched for employment rather than those who assumed there would be none. There was a second surge in applications, leading Ms. Walker-Tolles to believe that the second round of publicity made an impact. There have been fliers made in Tagalog and Spanish, which will be sent out November 20, 2020. If the Assembly decides to add the additional $1,000 per eligible applicant for rent or mortgage assistance, she believes they will be very close to expending the full $3 million grant appropriation. Ms. Walker-Tolles added that she is receiving messages from community members saying they wish the Assembly would increase the income limit, as families over $94,000 household income have needs as well. Ms. Walker-Tolles stated that because of the way the ordinance is written there must be eligible household expenses from August through December in order to qualify for the grant. There are some folks who did not receive the full $1,500 for rent or mortgage expenses because they were already on subsidized housing. As long as an individual is paying at least $300 per month in rent or mortgage, they will receive the full $1,500 benefit. If this is increased to $2,500 for housing assistance, a person must be paying at least $500 a month to qualify. She would like the Task Force to be aware that there may be people who are expecting to get more money than they will qualify for, however the majority of people will be eligible. 2021 Cruise Ship Season Update Mr. Day stated that the CDC, rather than reinstituting a no-sail order, came out with framework guidelines for the cruise ship industry to restart sailings. He mentioned that having something to focus on as an industry is a positive note, though pieces of the guidelines need clarification. There needs to be elaboration and clarification on the process of certifying ships, practice sailings, testing sites at embarkation and disembarkation, how to operate shore excursions, medical aspects in each ports, etc. Hopefully the ports as a region can come together to establish local protocols that will be similar enough to maintain homogeny as an industry. Mr. Day emphasized that he wanted businesses to think ahead and imagine what the season would be like if cruises and businesses were only allowed to operate at a reduced capacity. There are countless health and safety scenarios that need to be preemptively planned accordingly before the beginning of the 2021 cruise season. Ms. Thomas expressed the sentiment that there is a lot of work to be done when looking towards the economic recovery of Juneau for years to come. Adjourn At 4:08 p.m. the meeting was adjourned.

Agenda

Page 1 of 14 Economic Stabilization Task Force Appointed by the City & Borough of Juneau’s Mayor Meeting Agenda Thursday, November 19, 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/91986521134 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: 919 8652 1134 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 Ms. Thomas 1. Examine federal and state 3:01 p.m. Approval of Agenda Ms. Thomas government financial assistance programs and 3:02 p.m. Approval of Minutes Open identify and prioritize any “gaps” that exist. 3:05 p.m. Housing Assistance Grant Ms. Walker-Tolles 2. Identify and promote 3:20 p.m. Extreme Hardship Grant Mr. Mertz strategies that enable businesses to continue 3:30 p.m. Task Force Review Ms. Bell operations safely such as curbside pick-up, take-away, 3:45 p.m. Public Comment Matrix Ms. MacVay delivery, and other innovative services. Additionally, explore 3:50 p.m. Good of the Order Open strategies that enable businesses and Juneau’s economy to recover in the long 4:00 p.m. Adjourn term. 3. Act as Liaison with the Governor’s Alaska Economic Stabilization Team Page 2 of 14 Economic Stabilization Task Force Appointed by the City & Borough of Juneau’s Mayor DRAFT Meeting Minutes from November 9, 2020 Call to Order The Economic Stabilization Task Force meeting was called to order at 3:30 p.m. by Mr. Mertz. Task Force Members Present: Max Mertz, Theresa Belton, Bruce Botelho, Eric Forst, Ken Koelsch, Lauren MacVay, Laura Martinson, and Terra Peters Task Force Members Absent: Susan Bell and Linda Thomas Staff Present: Planning Section Chief for Emergency Operations Center, Robert Barr; CBJ Deputy City Manager, Mila Cosgrove; CDD Administrative Officer, Brenwynne Grigg; and CBJ Finance Director, Jeff Rogers CBJ Assembly Members Present: Mayor Beth Weldon, Loren Jones, and Gregory Smith Special Guest Speakers: Chief Behavioral Health Officer of Bartlett Regional Hospital, Bradley Grigg; and, Executive Director of Catholic Community Services, Erin Walker-Tolles. Approval of Agenda Mr. Mertz asked for any changes to the agenda. Ms. Martinson asked to add a brief cruise industry update after Mr. Rogers’ finance updates. Mr. Mertz asked that Ms. Walker-Tolles give an update on the Housing Assistance Grant after Mr. Griggs’ update on Children’s Mental Health. MOTION: Mr. Mertz asked for any objections to changes made to the agenda. Hearing no objections, the motion was approved. Approval of Minutes MOTION: by Mr. Forst to approve the Economic Stabilization Task Force meeting minutes from October 8, 2020. Ms. Peters seconded the motion. Hearing no objections, the motion was approved. Impacts of COVID-19 on Children’s Mental and Behavioral Health Page 3 of 14 Mr. Mertz introduced Mr. Bradley Grigg, Chief Behavioral Health Office at Bartlett Regional Hospital (BRH), and asked him to update the Task Force on trends in children’s mental and behavioral health since his last visit in August. Mr. Grigg stated that the data brought before the Task Force last August has been updated to include FY21 data from quarter 1, which is July through September of 2020. BRH is continuing to compare the first nine months pre-shutdown, which BRH is now calling pre-COVID, to six full months of COVID activity. Bartlett Regional Hospital is continuing to see an uptick in Emergency Department (ED) presentations for children, families, and adults. Teenagers are feeling the stress of COVID and its impacts at home, and do not have the tools to effectively manage that stress in ways that many adults do. Self-reports of stress-inducing factors include stress in the home, at work, at school, and with finances. From April – September 2020, 52 children age 13 and under presented in the ED compared to just six children the nine-months prior. In the 14 – 17 year age bracket, 68 children presented in the ED from in the six-months, post-COVID, compared to 33 children in the nine-months prior. The youngest child presenting in the ED was five-years-old. The most common age presenting during this time is 13-years-old. The middle school age seems to be the most seriously impacted by this time. Mr. Grigg also stated that BRH is seeing an uptick in new patients receiving Psychiatric Outpatient Services. Adults receiving psychiatric outpatient services for the first time went from a monthly average of six in the nine- months, pre-COVID, to 10 in July through September 2020. Children receiving psychiatric outpatient services for the first time went from a monthly average of four, pre-COVID, to almost 16 in July through September 2020. This data only represents what BRH is experiencing and does not include services being offered through SEARHC, Front Street Clinic, JAMHI, Juneau Youth Services, or other agencies in Juneau. Most of the new patients are citing COVID as a factor for why they are seeking services. However, many of the adults are saying the Housing Assistance program is offering some relief and they are grateful for it. BRH staff are assisting patients with applications for this housing assistance so that the process is not too overwhelming for them. The third data point Mr. Grigg presented on reflects suicide attempts in children. In the nine-months prior to COVID, there were three suicide attempts by children ages 17 and younger. In the six-month period post-COVID, there have been 12 suicide attempts by that same age bracket. Five suicide attempts occurred in minors between the ages of 14 – 17, and seven suicide attempts occurred in those ages 13 and under. Mr. Grigg expressed remorse over this data point, noting that this statistic crosses all walks of socio-economic and cultural status. Families are self-reporting their children struggling with school and distance learning, and struggling with no extra-curricular activities or social life. Even if those activities are available, the fear and worry of those choosing not to participate are negatively affecting these children. BRH Mental and Behavioral Health is experiencing its own surge with people and families in crisis due to the effects of COVID. Ms. MacVay asked Mr. Grigg to speak about the work with the School District and what outreach they might be doing to let children know that their feelings are valid, and that their parents are aware that the children’s struggles are valid. She spoke about the tendency sometimes to downplay or marginalize things that are happening, and said perhaps it is time to start having conversations about this. Mr. Grigg replied that currently, the BRH Psychiatric Clinic is serving 6% of the school district in outpatient services, which is about double the national average. He is receiving questions from coaches on what they should do when they notice a kid that is struggling. Mr. Grigg stated he is speaking with Dr. Weiss on how to communicate this data so that families know they are not alone. Additionally, he hopes to have conversations on a toolkit for teachers, coaches, and any adult who is in a child’s life, so they can identify secondary trauma and stress in a child. Mr. Botelho asked if Mr. Grigg knew how many deaths by suicide have occurred over the last 6 months to a year. Mr. Grigg replied that since July 2020, there have been five deaths by suicide, with one victim under the age of 18. Mr. Mertz noted the growth in children’s visits to the ED and asked how the routine or lack of routine is Page 4 of 14 affecting these children. For example, how much of this stress is caused by children being unable engage in their normal activities? Could reinstating a routine and sense of normalcy be helpful? Mr. Grigg replied that the biggest stressor for children and young people is the lack of normalcy of a social life: being unable to play sports or hang out with their friends, or perhaps swim club happening but then being canceled for a week and then back on and back off again. The lack of normalcy, structure, routine, and social life is really wearing children down. Children do not have the ability to adapt to these changes as quickly as adults do, and even adults are struggling. Mr. Mertz asked if BRH is able to staff these services to meet the need in the community. Mr. Grigg replied that three years ago, BRH has seven masters-level and licensed Behavioral Health Clinicians on campus. As of today, BRH has twenty masters-level and licensed Behavioral Health Clinicians, five of which have been hired in the last six months. The State of Alaska has recently funded BRH to continue expanding the capacity for behavioral and mental health work in the ED. BRH is addressing the challenge of supporting a family in crisis immediately following a visit to the ED. One Behavioral Health Clinician and two Youth and Family Navigators were recently hired to support the family in their home for the following five days to get through the initial crisis, connect them with community-based services, and provide other guidance and coping skills to stabilize the family unit. The new staff start their orientation on November 16, and services will begin on November 30. Ms. Martinson asked if BRH needs anything in terms of support or funding to facilitate the programs, or anything they wished they had. Mr. Grigg replied that their next step is to gather leaders from the School District to talk through this issue and examine how to equip coaches, teachers, and mentors to help children when they are with them. Update from Erin Walker-Tolles on Housing and Utility Assistance Grant Mr. Mertz asked Ms. Erin Walker-Tolles, Executive Director of Catholic Community Services (CCS), to give an update on the status of the Housing and Utility Assistance Grant program. Ms. Walker-Tolles shared they have received 1,000 applications to date, receiving 400 applications on day one and 350 applications on day two. CCS was pleased with the publicity efforts; it seemed to work. However, recently, they are only receiving a few applications a day, so CCS is considering doing another publicity push because of concern that they may be unable to expend all the funds. Of the applications received, 42% were deemed eligible based on the description of impact, while 15% were deemed ineligible. Another 45% of application needed follow-up, mostly due to a vague description of impact and the inability to connect it to COVID. For example, many people will describe their circumstance as unemployment, instead of specifying they are unemployed because they were laid off due to COVID. There are many applications from those who are in financial distress, but that distress is not always due to COVID-related matters. Many retirees are mentioning a financial strain due to the increase in cost of living, but this is not a COVID qualifier. CCS is following the self-attestation guidance in the Ordinance, but it must hear from individuals that their distress is directly related to COVID. CCS is referring applicants to partner agencies across the community if they are determined ineligible. Mr. Botelho asked about the level of outreach to communities whose first language is not English, such as the Filipino and Latino communities. Ms. Walker-Tolles replied that they are using the networks they have. She added that the faith community is instrumental in reaching that population; they have promoted the program through the inter-faith council and Filipino community, in addition to the posters distributed all over town and the AEL&P advertisements mailed to each household. Mr. Botelho followed up and encouraged Ms. Walker- Tolles to print materials in Spanish and Tagalog to make this program more accessible to those members of the community. Mr. Forst asked if there has been outreach to apartment and trailer park managers. He also encouraged the flyers to be printed in additional languages to increase accessibility. Ms. Walker-Tolles replied that if the CBJ can have the flyers printed in those additional languages, she is happy to distribute them. She added they have used Page 5 of 14 Alaska Finance Housing Corporation (AHFC) and Alaska Housing Development Corporation (AHDC) to expand outreach, because that is where people go when they are in need of assistance to pay their rent. Additionally, there was a long list of individuals who were directly contacted about the program. AHDC, AHFC, and the Juneau Coalition on Housing and Homelessness were relied on to contact the landlords and others who might know people who can benefit from this program. Mr. Mertz asked how many applicants are receiving the full grant amount, and if they are experiencing issues with the income cap. Ms. Walker-Tolles replied they have not experienced issues with the income cap as of yet, though some have asked questions about household structure qualifications. For example, they wanted to know if their elderly parent’s income was included as a household income if they were living in their basement or attached apartment. Mr. Mertz said that Ketchikan increased their income threshold to a higher amount and had many additional applications because people had formerly self-excluded themselves. Ms. Walker-Tolles stated that she is concerned they will be unable to expend all the funds and does not see how it can hurt to expand that income cap. She also feels that the Individual Assistance Program being considered by the Assembly will help fill some gaps on the lower income spectrum as well. Ms. MacVay stated there are many mortgages for which $1,500 is not enough to cover even one payment. She advocated for broadening the scope and asked if they have an idea of what the ceiling is on a monthly payment they are unable to satisfy. Ms. Walker-Tolles replied that if the program covers expenses from August to December, then this equates to a mortgage payment of $300 per month, which is very low. The program is not examining how much an applicant has lost in income or examining how much they are able to pay. Instead, the program is trying to determine how applicants can be eligible for the maximum amount through the program. Most applicants are receiving the full benefit amount. The only applicants receiving less are those who are paying very limited utilities, due to this being included in their rent. In this situation, the program will pay for internet expenses, for example. CCS is tracking monthly housing and utility expenses, so this data is available to us. Ms. MacVay stated that for some people, $1,500 is a drop in the bucket, and suggested that the program could be expanded to include a full mortgage payment on the higher end to optimize use of the funds. Ms. Walker- Tolles replied that it would not be difficult to go back and confirm monthly housing expenses and double it expend more of the funds. Ms. Walker-Tolles stated that CCS is receiving many calls from people who do not qualify for this grant because they have not experienced harm that can be closely linked to COVID, but have experienced harm and are financially on the edge. For example, their adult public assistance was reduced and now they cannot pay their bills. Alternatively, someone was unemployed at the start of the pandemic and they still cannot find a job because the job market has declined because of COVID. The application period for the Housing and Utility Assistance Grant program closes on December 12, 2020. Updated CARES Act Funding Pie Chart and Finance Discussion Mr. Rogers shared an updated pie chart displaying the allocation of CARES Act funding. The chart was revised to remove an additional $1 million that was thought might be needed by the Housing Assistance Program. Pending legislation continues to include:  $2 million for Economic Stimulus Grants;  $2.3 million for the Economic Hardship Business Grants;  $300 thousand for Family Promise;  $30 thousand for a supplemental to the Arts Sustainability Grant; and, Page 6 of 14  $73.1 thousand for FY21 Eaglecrest COVID-19 Related Operations. To date, $48,209,054.00 has been obligated, $4,703,100.00 is pending, and $298,788 of the CARES Act funding remains. Mr. Rogers stated that it should not be the goal of programs to spend every penny of funding if they are struggling to do so. There are CBJ operations that are eligible for CARES Act funding that can be reimbursed if there are funds leftover. The CBJ is experiencing large deficits due to COVID and anything leftover can help to support CBJ COVID-related expenditures. November 10 Finance Committee Agenda Update and Draft Ordinances Mr. Rogers shared the Assembly Finance Committee meets on Tuesday, November 10. They will discuss the remaining pending legislation for CARES Act funding, and receive updates from the School District on RALLY funds, the Nonprofit Sustainability Grant, and the Housing Assistance Program. Most of the pending legislation will receive a public hearing on November 16 or 23. Mr. Mertz stated that numbers are in from quarterly tax returns and asked Mr. Rogers to share insight from what they are seeing and how that might impact the average grant amounts and eligible businesses in relation to the Extreme Hardship Business Grant. Mr. Rogers shared a spreadsheet displaying anonymized 2019 Quarter 3 business tax data compared with 2020 Quarter 3 business tax data. He highlighted there are many micro-businesses that are most probably side-gigs that would be eligible for a $500 grant award. These micro-businesses would only receive the $500 grant due to a minimum amount to make it worth the administrative effort, because when using the mathematical formula accounting for loss, the result is less than $100. This effectively reduces the awards for businesses that provide a main source of income for the owner and jobs for Juneau residents. When examining the year-over-year loss, there is a natural break point at around $25 thousand, which he recommends the Task Force consider as a minimum loss requirement for grant eligibility. When setting a minimum loss of $25 thousand, it reduces the amount of eligible businesses and increases the award amounts by approximately $4,500 for those who are experiencing the greatest loss. Ms. Martinson asked for clarification on the calculations for award. Mr. Rogers clarified that the numbers he presented are estimates, and once the full calculation is taken into account, there will be fewer businesses that qualify, targeting the ones who have suffered the extreme hardship and losses. Mr. Mertz appreciated the recommendation of a minimum loss of $25 thousand. MOTION: by Mr. Forst to recommend the Assembly include in the ordinance a minimum threshold of $25 thousand in taxable year-over-year revenue loss to qualify for the grant. Mr. Botelho seconded the motion. Mr. Mertz stated that the Business Sustainability Grant Ordinance did well in focusing the types of businesses that might receive the grant. The current ordinance for this Extreme Hardship Business Grant does not have exclusion language for C corporations, and he wonders whether this is needed. Mr. Rogers replied that he does not have strong feelings around this. Mr. Holst has stumbled into some difficult issues on this topic when administering the Business Sustainability Grant program. It is not uncommon for one LLC to be owned by another LLC, which is owned by another LLC. These types of business structures have made it difficult to discern how it meets the intent of the program. The CBJ has counseled Mr. Holst that it is difficult under the law to deny someone a public benefit based on where they “plant their feet.” Mr. Rogers does not see an issue with including the language from 4b of the Business Sustainability Grant Ordinance. Page 7 of 14 Mr. Mertz stated that his intent is to ensure that grants are not being awarded to businesses that do not operate in Juneau year-round. Ms. MacVay supports the concept, but is leery of the real world application of restrictions that are put into the ordinance because of potential complications. Mr. Forst asked if the language of 4b in the Business Sustainability Grant caused problems for applicants. Mr. Rogers replied they did not, but there were still businesses who qualified under the technical aspects of the grant, yet would not be viewed as a locally owned business. He does not believe this language is excluding any legitimate local business. Mr. Mertz said that Mr. Rogers comment regarding the complexity of adding this language without resulting in excluding businesses not based in Juneau is a good point. Mr. Mertz stated the Family Promise Grant and Emergency Individual Assistance Grant is already at the Assembly level and is outside of the Task Force’s purview, but Mr. Rogers can answer questions of the Task Force. Ms. Martinson asked for more information regarding the $2 million Emergency Individual Assistance Grant and its target population. Mr. Rogers replied there are circumstances where individuals legitimately need financial support, but they do not neatly qualify for the Housing Assistance Program: for example, the unsheltered population, and adults who live together because they are roommates and not necessarily a household. This program is meant to fill the gaps and offer additional assistance to those in need above what the Housing Assistance Program offers. Cruise Ship Update Ms. Martinson shared that she met with Mr. Day, and he stressed that it would be wise to wait until City Managers and Mayors have been approached by CLIA with parameters for a tourist season before planning any sort of program. She stated that CLIA has announced voluntary suspension of all cruise ship operations for the remainder of the year. Canada has extended their ban on cruise travel until March 2021. Viking Cruise Lines announced they are installing their own PCR lab on their ships to test all crew and passengers every day. Public Comment Matrix None Task Force Review None Good of the Order Mr. Forst shared that Norwegian Cruise Lines announced a community Zoom meeting on November 18 to speaking about development plans for the Subport lot property. Ms. Martinson plans to speak to childcare providers to gauge how they are doing, and with parents about how they are handling the inconsistent scheduling due to COVID closures. Ms. MacVay plans to obtain additional information on mortgage delinquencies and defaults. Page 8 of 14 Adjourn At 4:28 p.m. the meeting was adjourned. Page 9 of 14 Presented by: AFC Presented: 10/26/2020 Drafted by: R. Palmer III ORDINANCE OF THE CITY AND BOROUGH OF JUNEAU, ALASKA Serial No. 2020-09(U)(b) An Ordinance Appropriating up to $2,300,000 to the Manager for a COVID-19 Extreme Hardship Business Grant Program; Funding Provided by the CARES Act Special Revenue Fund. WHEREAS, the Economic Stabilization Task Force recommended that the Assembly consider financial support to businesses disproportionately impacted due to COVID-19; and WHEREAS, on April 9, 2020, the Centers for Disease Control and Prevention (CDC) renewed the No Sail Order and Other Measures related to cruise ships to prohibit certain cruise ships from transporting passengers to ports in the United States; and WHEREAS, since early March, 2020, the State of Alaska issued COVID-19 Health Mandates that reasonably restricted travel, gatherings, close personal interactions, schools, and medical and dental procedures; and WHEREAS, since early March 2020, the Assembly issued COVID-19 directions regarding travel quarantines (Res. 2886), hunkering down (Res. 2885), and cloth face coverings (Res. 2890); and WHEREAS, the public health mandates and directions protected the health of the people in the City and Borough of Juneau and nearby communities; and WHEREAS, COVID-19 caused severe economic harm to businesses in the City and Borough of Juneau because nearly all of the forecasted cruise ship tourism was canceled, residents hunkered down to avoid COVID-19 and continue to do so, and businesses lost significant revenue due to the resultant loss of business and due to mandated closures or severely limited operations; and WHEREAS, failing to support businesses that suffered severe loss of revenue would result in further adverse impacts to Juneau’s economic and social service network; and WHEREAS, the COVID-19 Extreme Hardship Business Grant Program is necessary due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID- 19); and Page 10 of 14 WHEREAS, the COVID-19 Extreme Hardship Business Grant Program is being created by this ordinance and program expenses were not accounted for in the FY20 budget; and WHEREAS, the COVID-19 Extreme Hardship Business Grant Program expenses are incurred during the period that begins on March 1, 2020, and ends on December 31, 2020. BE IT ENACTED BY THE ASSEMBLY OF THE CITY AND BOROUGH OF JUNEAU, ALASKA: Section 1. Classification. This ordinance is a noncode ordinance. Section 2. Appropriation. There is appropriated to the Manager the sum of two million and three hundred thousand dollars ($2,300,000.00) for a COVID-19 Extreme Hardship Business Grant Program. This is an appropriation for the fiscal year beginning July 1, 2020, and ending June 30, 2021. Section 3. Source of Funds: CARES Act Special Revenue Fund $2,300,000.00 Section 4. COVID-19 Extreme Hardship Business Grant Program. The program is subject to the following terms and conditions: (a) Intent. The intent of this program is to provide support, in addition to the COVID-19 Business Sustainability Grant Program, to businesses that were disproportionately harmed by COVID-19 to offset the following expenses from November 1 through December 30, 2020: payroll, inventory, training, license fees, and fixed costs (lease/rent, utility, long-term debt). (b) Administration. The Manager is authorized to execute a grant agreement with the Juneau Economic Development Council (“Grant Administrator”) for disbursement of COVID-19 Extreme Hardship Business Grant Program funds. The Grant Administrator is responsible for assuring the program funds are disbursed only to eligible businesses. The Grant Administrator shall be provided a reasonable administration fee based on actual expenses. The Grant Administrator shall provide the Manager with program status reports at reasonable intervals. The Manager shall provide updates to the Finance Committee or Assembly. (c) Eligible Applicants. The program is open to all qualifying businesses (including a nonprofit), regardless of whether they have applied for or have obtained any other state or federal COVID-19 related assistance if the following is satisfied: (1) Business Sustainability or Non-Profit Sustainability Grant Recipient. The business received a business sustainability grant pursuant to Ordinance 2019-06(AG)(d) or a non-profit sustainability grant pursuant to Ordinance 2020-36, as amended. Page 11 of 14 (2) Year-round Operations. The business must provide proof of operations during Q4 2019 and Q1 2020, which can be verified with box 1 of IRS form 941 or sales tax return; (3) COVID-19 Extreme Hardship. The business suffered at least a fifty percent loss in gross receipts, as reflected on line one of the CBJ sales tax filing, during Q3 2020 as compared with Q3 2019, and the loss is at least $25,000 from Q3 2019 to Q3 2020; (4) Anticipated expenses. The applicant must estimate and attest that the following expenses from November 1 through December 30, 2020 exceed the grant request amount: payroll, inventory, insurance, training, license fees, and fixed costs (lease/rent, utility, long-term debt); (5) Payroll Pledge. The applicant must pledge to spend at least thirty percent of the grant proceeds on payroll, including employee benefits; and (6) Additional information. The Grant Administrator may request additional information from applicants when the application contains insufficient or contradictory information or the Grant Administrator may deem the application incomplete. (d) Assertion of Need. An applicant shall disclose if the business has applied for or received any other grant or forgivable loan. An applicant that has received any other grant or forgivable loan must attest that a grant from this program is still necessary to sustain business operations through December 30, 2020. (e) Compliance (1) Sales and property tax compliance. A business with any sales or property tax delinquency as of March 1, 2020, is not eligible for a grant. A business that executes a confession of judgment with the City and Borough of Juneau for all outstanding sales tax deficiencies can be eligible for this program. A business that is fully compliant with a confession of judgment payment plan can be eligible for this program. (2) Federal compliance. No grant may be issued to an applicant that is engaged in business or conduct that violates federal law and any grant so issued must be immediately returned in full. For example, no grant may be issued to an applicant engaged in or conducting a marijuana related business at the same location as the residence. (f) Grant amount. The grant amount shall be determined by the following formula: grant amount equals the difference in the applicant’s Q3 2019 and Q3 2020 gross sales divided by the difference in all eligible applicants' Q3 2019 and Q3 2020 gross sales multiplied by the appropriation in Section 2. However, no grant shall exceed $50,000; the Grant Administrator shall either cap any presumptive grant exceeding $50,000 at $50,000 or the Grant Administrator may apply a reduction factor so no grant exceeds $50,000. Page 12 of 14 (g) Exceptions. The Grant Administrator, after receiving direction from the Manager or designee, has the authority to make reasonable exceptions that match the intent of this grant program. (h) Confidentiality. Except as provided in this legislation, all application material submitted for this program and all information contained therein (Grant Data) shall be kept confidential except for inspection by: (1) Employees and agents of the City and Borough whose job responsibilities are directly related to such applications and information; (2) The business owner, managing member, or equivalent person supplying such application and information; and (3) Court order. However, nothing in this ordinance shall be construed to provide confidentiality to the name of the applicant, address of the applicant, and the amount of grant award, if any. (i) Grant application period. The grant application period shall be two weeks. The Grant Administrator shall review applications and notify applicants if the application is incomplete. An applicant with an incomplete application has five business days to cure to keep the original application filing date; otherwise the application must be resubmitted, if at all. Section 5. Effective Date. This ordinance shall become effective upon adoption. Adopted this _____ day of ____________, 2020. Beth A. Weldon, Mayor Attest: Elizabeth J. McEwen, Municipal Clerk Page 13 of 14 DRAFT SAMPLE OF REPORT OUTLINE AND FORMAT FOR INITIATIVES INCLUDED Mayor’s Economic Stabilization Task Force Summary of Work 4/9/20 – 12/31/2020 Introduction  ESTF Charter  Overview of approach Appointed members  Sentence or two for each member highlighting perspective brought to process  Staff support Initiatives Included in Report  Summary Table of Contents Date Page # Implemented or addressed Task Force Initiatives Recommendations/ Ordinances Implemented (EXAMPLE & NOT COMPLETE) a. Ordinance‐Short Term Rental Assistance b. Ordinance‐Childcare Financial Assistance c. Ordinance‐Business & Nonprofit Stabilization Grants d. Ordinance‐Nonprofit Stabilization Grants e. Ordinance‐Juneau Conservation Corps Program f. Ordinance‐ Juneau Arts program g. Recommendation‐Infrastructure projects h. Juneau Cares Campaign (Travel Juneau) Recommendations in Progress: Other Recommendations (EXAMPLE ONLY & NOT COMPLETE) a. Business to Business Support and Mentoring b. Historical Documentation of Covid 19 Crisis c. Recommendation to AIDEA about exclusions for PPP/EIDL d. Airlift Northwest e. Business Safety/PPE Page 14 of 14 Initiative A  Brief description of the issue/challenge  Members assigned to fact‐finding effort  Summary of findings (affected parties, examples, partners, opportunities)  Recommendation to CBJ Assembly or staff  Action taken by CBJ  Recommendations for further analysis or actions Initiative B, etc.  Brief description of the issue/challenge  Members assigned to fact‐finding effort  Summary of findings (affected parties, examples, partners, opportunities)  Recommendation to CBJ Assembly or staff  Action taken by CBJ  Recommendations for further analysis or actions Appendices: A. Task Force Public Meetings and Attendance B. Timeline of Key Dates C. Pie Chart of Task Force Recommendations implemented and other CBJ Funding as XX date D. Public Comment Matrix E. Research and Other information submitted to Assembly or in public discussion Abstract with items discussed and provided to the public… Treasury Act Guidance, Cares act and insurance, Juneau Businesses dealing with Covid and Mitigation Plans, Links to Ak. Mun. League, Ak. States Cares act loans/grants, etc., Juneau Economic Plan, Mental Health update, Life‐Med, etc.