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08/03/2023 - Meeting Minutes ERIN MENDENHALL L DEPARTMENT of COMMUNITY Mayor y and NEIGHBORHOODS DEPARTMENT of ECONOMIC DEVELOPMENT 1 1 1 ' AGENDA Thursday,August 3rd, 2023 4:00-6:oopm 1. Roll Call The following members of the Community Recovery Committee were present: Jacob Maxwell, Chairperson Steve Anjewierden,Vice Chairperson Jason Wessel Esther Stowell Matthew Coles Pook Carson Will Terry Staff Present: Cathie Rigby, Department of Economic Development(DED) Todd Andersen, Department of Economic Development(DED) Jack Markman, Community and Neighborhoods(CAN) Department Michael Johnson, Community and Neighborhoods (CAN) Department Heather Royall, Community and Neighborhoods (CAN) Department Absent: Steven Calbert 2. Briefings by the Staff a. Report from the DED Program Manager Ms. Rigby said she would be emailing committee members for any missing scores. Ms. Rigby said that due to construction in the City&County Building,the Committee may have to switch to all- virtual meetings starting in two weeks. Staff would put a motion on next week's agenda for the Committee to discuss and vote on a transition to all-virtual meetings. BUSINESS ITEMS: 1. Discussion on CAN-managed ARPA nonprofit application grants Mr. Markman reminded the Committee that City Council passed a budget amendment that moves CAN's $2 million from Treasury Fund to the City's General Fund.The City decided to take these Treasury funds, ERIN MENDENHALL L DEPARTMENT of COMMUNITY Mayor y and NEIGHBORHOODS DEPARTMENT of ECONOMIC DEVELOPMENT invest them into revenue replacement, and then CAN could draw the funds back out of the General Fund for their nonprofit grants.This amendment has some pros and cons.The eligibility requirements and accountability measures are much more forgiving now that they are General Fund dollars. But early on in CAN's application process,there were seven(7) applications that were deemed ineligible under ARPA regulations. It's possible that the City Council might object to those seven(7) applications not being considered,when the eligibility requirements have now changed. Staff recommends that those seven(7) applications be re-submitted to the Committee for scoring.Mr.Markman opened the item up for discussion. Chairperson Maxwell feels the simplest solution is to score the seven(7) applications. He acknowledged that this might feel unfair to other applicants,but that the Committee must find a solution to make final recommendations on CAN's funding. Ms. Stowell asked if the Committee would score these seven(7) applications the same as previous CAN applications or if they would score them separately(as if they are in their own group).Mr. Markman responded that the goal was to score the seven(7) applications like previous applications.This includes mimicking the number of Committee members who scored previous applications,and the distribution of Boards &Commissions representation(Arts Council, Human Rights Commission,etc.) Mr.Wessel felt that scoring the additional seven(7) applications would not be equitable because the makeup of the Committee has changed. He felt there is no way to be consistent with previous scoring, as one of the previous Committee members has been replaced with a new member.Also, Committee members might have unconscious biases that will come out when scoring these seven(7) applications,which would have a different set of scoring criteria. Mr.Markman acknowledged Mr.Wessel's concerns and said that there was no perfect way forward. Mr.Wessel recommended that after we score the seven(7) applications,the Committee hold a special meeting to re-discuss all CAN applications and the methodology of funding recommended awardees. He believes this to be the most equitable solution to the additional seven(7) applications. Vice Chairperson Anjewierden asked to be reminded of the funding methodology that the Committee previously decided upon. Mr.Markman responded that the Committee decided that the highest scorers would receive their full eligible ask, and it would go down the list until funding ran out. In the event of a tie at the end,the remainder of funding would be split between two tied applicants. Vice Chairperson Anjewierden also asked if the Committee would have a quorum without Sarah Longoria, the representative from Arts Council who scored previous CAN applications.Mr.Markman responded that the issue would not be having a quorum,but rather that one of the seven(7) applications is arts related, and the City ordinance establishing this Committee specified participation from a wide distribution of other Boards &Commissions,including Arts Council. Mr. Coles asked if the Committee could ask Sarah Longoria to briefly re join the Committee to score these seven(7) applications.Vice Chairperson Anjewierden and Mr.Wessel agreed this could be an advantageous solution. Ms. Rigby noted that Sarah Longoria stepped down from the Committee due to scheduling conflicts,not because her term with the Committee ended. She believes that Sarah could briefly come back to the Committee if she's available and willing. Ms. Rigby added it was possible for the Committee to decide on an entirely different funding methodology for these seven(7) applications. ERIN MENDENHALL L DEPARTMENT of COMMUNITY Mayor ` y and NEIGHBORHOODS �" DEPARTMENT of ECONOMIC '"n"� DEVELOPMENT �'I T`� Mr. Markman volunteered to reach out and see if Sarah would be willing to help score the seven (7) applications. A straw poll was conducted on the following recommendation: Reach out to Sarah Longoria as soon as possible to briefly re join the Committee. Jacob Maxwell, Chairperson—Yes Steve Anjewierden,Vice Chairperson—Yes Pook Carson—Yes Matthew Coles—Yes Will Terry—Abstain Esther Stowell—Yes A straw poll was conducted on the following recommendation: Committee members reviewing the seven(7) applications will score these in addition to the small business applications they are currently scoring, rather than setting aside an additional week to score them. Jacob Maxwell, Chairperson—Yes Steve Anjewierden,Vice Chairperson—Yes Pook Carson—Yes Matthew Coles—Yes Will Terry—Abstain Esther Stowell-Yes 2. Review and Discuss Small Business Applications Regarding applicant CGA-00082381,Mr.Wessel asked how much other economic assistance the applicant received.Ms. Rigby answered they received$io,000 in other economic assistance. Regarding applicant CGA-00085048,Mr.Wessel asked the amount of another grant the applicant received.Ms. Rigby answered they received$30,000. Regarding applicant CGA-00085098,Mr.Wessel said they mentioned having 3.5 employees,and asked what this meant.Ms. Rigby said staff understood that the applicant had 3 full-time employees.They could not find any mention of 3.5 employees in the application,so it could've been a typo. Mr. Coles asked if businesses could use grant funding to increase the salaries of current employees or put into savings.Ms. Rigby answered that under ARPA regulations,businesses cannot use grant funding for savings or to pay debt. She also explained that businesses could use grant funding for bonuses,retention pay,or a regular salary if an employee previously took a reduced salary(or no salary)due to the COVID-10 pandemic.She also explained that businesses who are awarded funding meet with staff before funding is disbursed to go over budgets and correct any ineligible budget requests. Mr.Wessel said that one of the nonprofit applicants is a 501c6 with a board of directors. For scoring purposes, should a board of directors be considered employees of the organization?Ms. Rigby responded that if the board of directors are paid wages that can be proven through wage reports,then they are considered employees.She said staff would be happy to reach out to the applicant for clarification.Mr.Wessel said he would review their application again and reach out if further clarification was needed. Regarding applicant RCGA-00063473,Mr.Wessel asked if artists referenced in the application were employees or contract laborers.Ms. Rigby responded that if artists were contract laborers,this would fall under ERIN MENDENHALL L DEPARTMENT of COMMUNITY Mayor y and NEIGHBORHOODS DEPARTMENT of ECONOMIC DEVELOPMENT general operating costs.Staff will reach out to the applicant for further clarification. Regarding applicant RCGA-00063385,Mr.Wessel said the applicant mentioned using funding to pay for liabilities,which could be interpreted as paying debt.Ms.Rigby said that,in general,grant funds could not be used for debt.Mr.Andersen read an excerpt from the application,which said the pandemic forced them to move from a brick-and-mortar space and operate out of their home.They intend to use grant funds to return to their brick-and-mortar space.Ms. Rigby noted if the debt mentioned is for mortgage or rent,that is an allowable use of ARPA funds. Staff will reach out to the applicant for further clarification on their liabilities. 3. Briefing on Upcoming Week's Small Business Applications Ms. Rigby said that Mr. Calbert now had access to grant applications in Salesforce. Mr.Wessel requested that staff reach out to Mr. Calbert and ask if he feels comfortable catching up on scoring, as it would be a large volume of applications to review. Staff agreed and will reach out to Mr. Calbert. Ms. Rigby did note that if Mr. Calbert did not feel comfortable catching up,that the Committee would still be able to average scores and complete the process. 4. Other Business Mr.Anjewierden noticed that many applicants heard about the grant program through in-person visits from SLC staff. He complimented staff on their hard work to market the program to businesses. He also noticed an increase in the quality of applications and complimented staff on technical assistance given to applicants. 5. Adjourn There being no further business,the meeting was adjourned. Committee Chair This document and the recording constitute the official minutes of the Community Recovery Committee meeting held August Trd, 2023.