07-27-2020 Council Work Session Minutes 2

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CITY COUNCIL WORK SESSION 43 Mr. DeGardner will check on the suggestion to look at cabin filters for City vehicles. 44 45 Councilmember Stoesz suggested adding sound and a monitor outside the council 46 chambers. 47 48 Councilmember Lyden remarked that the $1.6 million to the City is a unique situation and 49 he supports fully utilizing it. Staff should make it work. Public Safety Director 50 Swenson noted that the expenditure of funds must meet guidelines or there could be an 51 audit and request for return of funds. Mayor Rafferty said he is proud of staff for 52 bringing forward everything they can in the way of eligible projects and that is the 53 expectation. 54 55 The council and staff discussed moving forward. Administrator Cotton noted that the 56 planning/architecture type costs that can precede an eligible project are grant-eligible 57 even if the project doesn't go forward. 58 59 Community Development Director Grochala said the City can use the funds to provide 60 grant assistance to small businesses. Anoka County is establishing a program and the 61 City can have its own program and the county guidelines could be mirrored. Director 62 Grochala explained that many of the businesses in Lino Lakes would meet the under fifty 63 employee threshold. The City would hold some responsibility if the funds weren't used 64 within requirements. Administrator Cotton remarked, and Director Grochala concurred, 65 that there is some concern that the City would have to provide administration and that 66 would have to be hired outside current staff. Other considerations: perception by 67 businesses that the City is choosing not to offer a program; County grants are not 68 available to businesses who can get grants from their city. Councilmember Lyden noted 69 that the school district may be a good target for the funds since they will already be 70 administering other like funds. Councilmember Stoesz suggested making eligibility 71 contingent upon a business having had to actually close their doors. Administrator 72 Cotton explained that the funds would have to be used for actual expenditures. Mayor 73 Rafferty noted that he wants to see the City make the best use of funds available and 74 wonders how this program would fit in. 75 76 Councilmember Ruhland asked Director DeGardner if he has cost estimates for the 77 projects he's presented. Mr. DeGardner said he has some and is working daily on getting 78 others. The council asked staff about how accurate they can be at this point about how 79 the funds can be used and to what extent. Ms. Cotton noted that staff is gaining as much 80 information as possible on appropriate use; much use will be tied to public safety because 81 that has been an area greatly impacted by the pandemic;the goal is to follow guidance on 82 fund use as assertively as possible. Since an audit on the use of funds will be required, 83 Councilmember Stoesz asked how much that audit is expected to cost. 84 Ms. Cotton noted that the City's annual internal audit costs in the area of$35,000 but she 85 wouldn't expect it to be that much and she anticipates the audit cost would be an eligible 86 expense. 87 2