By SHANNON HAUGLAND
Sentinel Staff Writer
Some 436 of the 667 applications from local for-profit and nonprofit businesses for CARES Act financial assistance have been processed so far, the Assembly was told Tuesday.
In an update at the regular Assembly meeting, City Administrator John Leach said the city is hoping to distribute grants by the end of the month.
The dollar amount of the applications processed is $2.1 million, of the $5 million set aside by the Assembly for nonprofits and businesses.
Leach said if the average amounts requested continues, it will amount to $3.2 million, leaving $1.7 million unspent.
Reading from a report from CARES Act grant technician Rob Allen, Leach said about 47 percent of the applications require follow-up of some sort, including more information, or corrections. Of the 436 processed, the city still needs more information on 104.
But Leach said the city is still hoping to complete the process in order to distribute the checks by the end of this month.
Allen, who was hired to review the nonprofit and for-profit applications, reported the average amount requested was $4,840, and that by sector the applications were from:
Fishing industry (commercial)–165 applications, or 38 percent of the applicant pool.
Tourism, including charter operators–45 applications, or 10 percent of the pool.
Nonprofits–35 applications, or 8 percent of the pool.
Retail–23 applications, or 5 percent.
Rentals (short-term and long-term)–23 applications, 5 percent.
Restaurant and food service–14 applications, 3 percent.
All other businesses– 31 percent.
Most of the applicants were requesting funds in the lowest category, which was based on the firm’s annual gross revenue. Leach said 51 percent of the applications were in the lowest gross revenue category with a maximum grant of $2,500; 21 percent were in the next category with a grant maximum of $5,000; 12 percent were in the maximum $7,500 grant category; and 16 percent were in the over $500,000 gross revenue category, for which grants can be up to $10,000.
In public comments, one speaker said the CARES Act funds are for the people of Sitka, and told the Assembly that a number of people were struggling and could use some extra help.
Marshall Albertson asked Assembly members to disclose if their business would benefit from a CARES grant, and asked for an update on CARES spending.
Another speaker, Sitka Fine Arts Camp director Roger Schmidt, asked the Assembly in the next round of fund distribution to consider businesses that were hit particularly hard directly by the pandemic, and serve a critical role in the community in such areas as providing employment.
The plan for awarding grants had been previously approved by the Assembly, and was close to the model recommended by a community working group. The plan also included $4.5 million for moorage and utility subsidies. The city started distributing that money in mid-August, but officials said it is estimated only $2.7 million will be distributed from the applications submitted, leaving $1.8 million.
Under federal guidelines, the funds must be spent by December 30.
Other programs eligible for city CARES Act help are those for housing assistance, transitional employment, childcare assistance, schools, food distribution programs, and COVID mitigation measures to protect city employees, emergency responders and the public.
Leach said the information gathered in the first round of applications in the nonprofit and for-profit category will help with future decisions.
Human Resources Director
With little debate, the Assembly voted 5-2 to approve the hiring of Michelle Murdock as human resources director.
Voting against were Valorie Nelson and Richard Wein. Nelson raised concerns about the salary, and Wein was concerned about her short tenure in some of the jobs on her resume. Murdock has been human resources director at Unalaska the past two years. Those voting in favor said they believed Murdock was well qualified for the job.
Police and Fire
In other business, the Assembly narrowly rejected an application from resident Ben Hughey to serve on the Police and Fire Commission after meeting in executive session to discuss comments he had made on social media in the national debate on police reform.
The vote was 7-0 on Kevin Mosher’s motion to hold an executive session to discuss the appointment. A few members of the public voiced opposition to the executive session, and said they wanted to hear Hughey’s views. Hughey was invited into the executive session for the discussion, and there was also debate in open session.
In the end, the appointment failed 3-4. Voting in favor of appointing him were Thor Christianson, Kevin Knox and Steven Eisenbeisz. Kevin Mosher, Valorie Nelson, Richard Wein and Mayor Gary Paxton voted against.
Those voting against said it was not appropriate to appoint someone who may have an agenda, and had generally negative views on police. Those in favor said it doesn’t hurt to have diversity on the panel, and being an advocate is not a prerequisite for serving.
Wein, in casting a “no” vote, said he felt it was not the right time to appoint Hughey, since the Sitka police department is heading in the right direction and making improvements.
“These are rough seas, and we need a steady hand on the tiller, without any interference,” Wein said today.
Dave Nelson, president of the Sitka Chapter of the Public Safety Employees Association, said some of Hughey’s social media posts raised concerns.
“Some of (the posts) definitely appear to be anti-police, proactively wanting to do things like de-fund the police,” Nelson said. “I’m not sure Sitka’s really the venue for that.”
(In the same meeting Hughey was appointed without objection to a position on the Parks and Rec Committee.)
When asked by the Assembly to come forward to answer questions about his appointment to Police and Fire, Hughey said he’s interested in exploring new ways to solve community problems, other than law enforcement. He said he believes he represents a different viewpoint.
“I don’t want to undermine the work of the Assembly and police department,” he said. “I want to work together to find solutions.” He added today that he generally supports reducing the load on law enforcement and “looking into alternative ways of protecting the community,”
Mosher said the role of police in the community is a necessary one in society, and Sitka’s police force needed to be supported. And Nelson said she had a problem with some of Hughey’s statements, which in her experience were not borne out as they relate to officers she knows.
A few commented that the Police and Fire Commission is advisory only, that Hughey would be only one voice on the panel, that he would be able to learn more about police operations, and that he represents a segment of the community with similar feelings about police.
“It’s an important voice. I’m very supportive of having as many voices around the table as possible,” Kevin Knox said.
Other Business
On other agenda items, the Assembly:
– read a proclamation honoring the late Patricia “Patty” Bickar for her years of service in the community.
– amended the city’s zoning map to rezone Lot 2-2 on the Sheldon Jackson Campus subdivision from Multifamily Residential (R-2) to Cemetery.
– approved ordinances related to unspent appropriations from fiscal year 2020 that needed to be moved to fiscal year 2021.
– approved 7-0 a $1.3 million appropriation to continue moving forward with Phase I of the Green Lake hydro upgrade. The city is applying for a low-interest loan from the U.S. Department of Agriculture, but there is currently a backlog of requests, and the city would like to start the project. “If it doesn’t pass, we can’t accept bids,” Leach said.
– approved November 27 and 28 as sales tax holidays. Eisenbeisz recused himself since he is owns a retail business. The vote was 6-0.
– met in executive session to discuss proposals that have been received for lease or sale of 17 acres of city waterfront property at 4951 HPR, but no decisions or motions were made.
