Foster City OKs aid for businesses

The council is also interested in allocating an additional $50,000 or more to assist other organizations or people in need of help. Child care providers, parents with child care expenses who’ve been affected by the virus and/or particularly vulnerable populations in the city were mentioned as contenders for that money. Parents were mentioned because many continue to pay their child care providers to reserve a slot for their kids even though they’re currently at home because of the stay-at-home order.

The council directed staff to explore those and other potential uses for the additional $50,000. A decision will be made during a special meeting sometime next week.

The aforementioned nonprofit is Foster City Village, which has been serving seniors in the city since 2013. Because of the pandemic, the organization has adjusted the services it provides, which these days include online workshops, classes and social gatherings; grocery store runs; and also the distribution of hand sanitizer and protective equipment to its members.

Those services are more expensive than the ones the nonprofit typically provides, and the additional costs are coming at a time when revenue is down. Because many of its members can no longer afford membership fees — which Hindi said total $365 a year — the nonprofit has deferred those costs for three months.

To ensure the above services continue, the council signed off on a $5,000 grant for the nonprofit to cover the cost of the protective equipment it provides, food distribution and gas for the volunteer drivers.

The bulk of the relief money approved Tuesday — $500,000 to be exact — goes to small businesses. What’s called the Small Business Resiliency Grant Program will provide up a grant up to $10,000 to any small commercial and retail business located in the city. The goal is to provide immediate assistance to the businesses so they can survive the crisis, retain employees, many of whom are Foster City residents, and open as soon as possible once the crisis blows over. Businesses owned by sitting councilmembers cannot benefit from the money.

The grant money is intended for expenses including rent payments, utilities and payroll costs. Businesses will be required to provide post-payment verification to ensure they’re using the money according to that intent.

As part of the program, businesses will also be assisted by the city when applying to state and federal aid programs as they become available.

“We’re looking for a holistic recovery. It’s not just give them a check and ‘good luck to you,’” said Assistant City Manager Dante Hall. “It’s here’s some money for now, but we know you have bigger issues and we know there’s a lot of stuff coming up. Let us hold your hand and make sure you’re in line when decisions are made for those resources.”

Mayor Catherine Mahanpour said she would prefer giving businesses a zero-interest loan rather than a grant, arguing the former option would make more money available to businesses while ensuring the city can recover those costs. She and her colleagues opted for the grant approach largely because it’s faster, but they agreed to explore the possibility of also offering loans to small businesses in the future.

The package of relief programs the council passed Tuesday also includes one aimed at providing additional help for local restaurants specifically, many of which are suffering and may never reopen. The council agreed to place $25,000 to fund an existing restaurant voucher program called “Get it Here: Support Local Foster City.” Customers who download an app called “Stamp Me” will receive a $25 voucher to be used at local participating restaurants offering takeout and delivery. The program would be available until the end of the shelter-in-place order.

Each of the above programs will be paid for via the city’s community benefit fund, which currently has a balance of $600,000.

“We’re trying to cover different segments of the community,” Hindi said, adding “time is of the essence.”

During the meeting, City Manager Jeff Moneda said he expects the virus to result in an operating deficit of $1 million this fiscal year. He’s considering canceling the Fourth of July and Summer Days events in the summer to save the city $130,000, and is also asking department heads to come up with a list of other ways to save money. A comprehensive presentation on revenue impacts will be provided at the next council meeting.

In other business, the council agreed to waive the 3% credit card fee for paying utilities bills in the city through June 30. The move will cost the city $2,000 per month again from the community development fund.

zachary@smdailyjournal.com

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