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HomeMy WebLinkAbout2021-01-26; City Council; ; COVID-19 Actions and Expenditures ReportMeeting Date: Jan. 26, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Geoff Patnoe, Assistant City Manager geoff.patnoe@carlsbadca.gov, 760-434-2820 Subject: COVID-19 Actions and Expenditures Report Districts: All Recommended Action Receive a report on recent actions and expenditures related to the city’s response to the COVID-19 pandemic, provide direction as appropriate and adopt a resolution appropriating $1.5 million from the city’s economic uncertainty set-aside in the General Fund to pay for costs related to the COVID-19 local emergency. Executive Summary/Discussion The City Council voted unanimously April 7, 2020, to direct staff to return to the City Council with financial expenditure reports relating to the city’s response to the COVID-19 pandemic. The city manager further committed to provide a bi-weekly update to the City Council on recent actions and expenditures related to the city’s response to the pandemic. For these updates, staff from the following major service areas will provide verbal reports on current statistics, data, programming and relevant communications: •City Manager’s Office •Emergency Operations •Community Services •Police •Fire •Economic Revitalization and Recovery •Administrative Services Fiscal Analysis On April 14, 2020, the City Council adopted Resolution No. 2020-061, which appropriated $3 million from the city’s economic uncertainty set-aside fund in the General Fund to pay for costs related to the COVID-19 local emergency. As of Jan. 20, 2021, total COVID-19 expenditures and encumbrances exceed the initial $3 million appropriation. Staff is requesting an additional $1.5 million from the city’s economic uncertainty reserve funds in the General Fund to offset the city’s expenditures related to the COVID-19 emergency. Jan. 26, 2021 Item #8 Page 1 of 5 The city’s economic uncertainty set-aside currently has a balance of $11.1 million. If $1.5 million additional is spent during the emergency, the total funds appropriated for COVID-19 related expenditures would total $4.5 million and the new balance of the set-aside would be $9.6 million. If any of the $4.5 million is left unspent or reimbursed by FEMA at the end of the emergency, the remaining funds will be added back to the economic uncertainty set-aside fund. The need for additional funding from the reserve is determined by the amount of total expenditures plus any encumbrances through Jan. 20, 2021, and estimated future expenditures, excluding salaries, as detailed below: COVID-19 - Non-Capital Improvement Project No. 9593 Appropriations to date (resolution No. 2020-061) $3,000,000) Expenditures to date (excluding regular and part-time staff salaries spent on COVID-19-related activities) (1,659,000) Encumbrances to date (1,440,000) Total expenditures and encumbrances exceeding available funding (99,000) Additional appropriation requested 1,500,000 Balance for future COVID-19 related costs $1,401,000 Potential for future reimbursement The city is tracking all expenditures to date with the intention to submit a reimbursement request to the Federal Emergency Management Agency, known as FEMA. FEMA does not reimburse all expenditures and, based on its current guidance, staff estimates $900,000 in expenditures will be submitted for reimbursement, including $400,000 for staff overtime and $500,000 for cleaning, disinfecting, public notification, and personal protective equipment. There is the potential for partial reimbursement of these costs, but reimbursement is dependent upon receiving the necessary approvals from FEMA and/or the city’s insurance provider. CARES Act funding Police and Fire department staff salaries were deemed reimbursable under the CARES Act and all CARES Act funding received or expected has been or will be justified as reimbursable based on regular safety personnel salaries. The city has received the following CARES Act funding and applied the funding as follows: CARES Act funding CARES Act funding received in FY 2019-20 $2,116,000 CARES Act funding received in FY 2020-21 1,423,000 Total CARES Act funding received 3,539,000 Regular and part-time Police and Fire salaries attributed to COVID-19 related activities (3,539,000) Balance of CARES Act funding received, not yet applied $0 Jan. 26, 2021 Item #8 Page 2 of 5 The funds received increase the city’s revenue, helping to offset some of the lost transient occupancy tax revenue that resulted from the pandemic restrictions. The regular and part-time staff Police and Fire department salaries attributed to COVID-19- related activities were included and funded through the city’s budget process. Next Steps With the City Council’s approval, the deputy city manager of administrative services will appropriate $1.5 million from the city’s economic uncertainty set-aside funds in the General Fund to pay for costs related to the COVID-19 local emergency. Staff will continue to provide the reports bi-weekly until the end of the emergency. Environmental Evaluation (CEQA) This action does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Therefore, it does not require environmental review. Public Notification Public notice of this item was posted in keeping with the Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1. City Council Resolution Jan. 26, 2021 Item #8 Page 3 of 5 RESOLUTION NO. 2021-036 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROPRIATING $1,500,000 FROM THE CITY'S ECONOMIC UNCERTAINTY SET-ASIDE IN THE GENERAL FUND TO PAY FOR COSTS RELATED TO THE COVID-19 LOCAL EMERGENCY WHEREAS, on March 16, 2020, the director of emergency services proclaimed the existence of a local emergency due to conditions of extreme peril to the safety of persons and property as a result of the spread of COVID-19; and WHEREAS, on March 17, 2020, the City Council of the City of Carlsbad adopted Resolution No. 2020-048 declaring a local state of emergency pursuant to California Government Code Section 8630; and WHEREAS, on April 14, 2020, the City Council of the City of Carlsbad adopted Resolution No. 2020-061 appropriating $3,000,000 from the city's economic uncertainty set-aside in the General Fund to pay for costs related to the COVID-19 local emergency; and WHEREAS, as of Jan. 20, 2021, total COVID-19 expenditures and encumbrances exceed the $3,000,000 appropriation adopted via Resolution No. 2020-061; and WHEREAS, the city has incurred and continues to incur significant expenses as a result of the COVID-19 local emergency; and WHEREAS, the city currently has $11.1 million set-aside for economic uncertainty in the General Fund; and WHEREAS, it is the intent of the City Council to seek the maximum aid, comfort and restitution to its citizens who are victims of this calamity; and WHEREAS, it is the intent of the City Council to do all things necessary to effectuate this intent. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the deputy city manager, administrative services is authorized toappropriate $1,500,000 from the city's economic uncertainty set-aside in the General Fund to cover the cost of expenditures related to the COVID-19 local emergency. Jan. 26, 2021 Item #8 Page 4 of 5 1-lec-ivc. 6o e7/ -iv- BARBARA ENGLESON, City Clerk o ep 0:3 (SEAL) C14-i C letiz 3. That any of the $1,500,000 left unspent at the end of the emergency will be added back to the city's economic uncertainty set-aside in the General Fund. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 26th day of January 2021, by the following vote, to wit: AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher. NAYS: None. ABSENT: None. MATT HALL, Mayor Jan. 26, 2021 Item #8 Page 5 of 5 All Receive -Agenda Item# £1 For the Information of the: CITY COUNCIL Date 1} Jt.q)l CA v CC ✓ CM ✓ACM ~CM (3) /1 Jan.26,2021 Council Memorandum To: From: Via: Honorable Mayor Hall_ and Members of the City Council Laura Rocha, Deputy City Manager, Administrative Services Geoff Patnoe, Assistant City Manager {;; {city of Carlsbad Re: Additional Materials Related to Staff Report Item No. 8 -COVID-19 Actions and Expenditures Report This memorandum provides a breakdown of the costs of the city's extensive emergency response efforts by department and type of cost as of Jan. 20, 2021. These expenses are being tracked to understand the financial impact of COVID-19 on the city and to request state and federal government reimbursement for eligible expenses. The next update will be provided on Feb. 9, 2021. Department Description of Item or Service ltTI Purchase Order Expenditures to Amount Date Committed Funds 1.:rl Remaining ,_::=i_·· C_i~ty_M_an_a_g_e_r ______ ..... Cleaning s__11pplies + ........ -L_ 198 ___ _ 198 1,876 :::!Communication & Er_igagement I Protective gear 1. -.1 _ _ 1,876 __ _ Public notification ~,29~ 121,544 165,835 1------------~Signage : __ , 3,049 _ ___ 3,049 3 Community Development 1Cl~a-ning supplies 411 -____ 411 _a Enviro_nmental Management ic:1eaning supplies ---_-~ ----5 5 /IT equipment · 1 · · -~-· 118 - 1Cleaning services I 705,631 · 106,560 812,191 ______ --= ---~--=~---_________ .:~1~~-ning sup_e!~~_s_ _ ~-~-___ i3!_~_46_ ___ _70,609 · ____ }!-~,9~5 118 ,-3 Facilities __ Meals and meal supplies 1 __ -1 205 205 ---- ~tivege~ , Public notification ,__ ___________ Sig_nage ___ _ 3 Fire Cleaning services Cleaning supplies 36,422 I --~ I __ 1~,~45 I I _--_-_-_-____ ---J Meals and mea-1 supp~ies ------ 1------------~I Pro!e~~ve -~ear . .::I Fleet I Cleaning supplies --I -. I : j -----------.... I .. 'Protective gear : Administrative Services Branch 1635 Faraday Avenue I Carlsbad, CA 92008 I 760-602-2415 11,584 48,006 - 26 26 303 · 303 ----28,118 . 4_8,062 7,316 7,316 24,537 24,537 41,020 . 41,020 _l,447 _____ __ _1,447 32 32 Council Memo -Additional Materials Related to Staff Report Item No. 8 Jan. 26, 2021 Page 2 Department Description of Purchase Order Expenditures to Committed Item or Service Amount Date Funds itT !-Ti Remaining B HR Cleaning supplies I -J 1,208 ! IT~quipment I -i 150 : - ,_f:3-ln_fo_r_m_a_ti_o_n_T_ec_h_n_o_lo_g_y ___ ~::e~~~:e~i~r · .. 1. -·-··· !i:~~!l-------1~::~~~ I _ ~ ;~i:!~!- J =JOffice of Innovation Econo~i<:j ~~it~lizatl o_ri_ __ I_ 3,168,977 I 1,681,023 · 4,850,~00 90,000 B,--:::.-P-ar_k_s_&_R_e_c-re_a_ti-on ____ ______.Cleaning services ! --14~19 I 75,38-1 ---· I cleaning supplies I 230,690 I 140,824 371,514 I Meals and meal supplies i 41,651 [-213,022 254,673 ,------------,-O-th_e_r----~--_- 1 ----.. ----_--_ ~.Ji __ -_ _ 1,341 2 1, 1 3 5 4 0 1 1 _ _ _ _ _ ~rotective _gear _ _ _ ____ ___ _ __ 2,501 __ _ Public notification 4,339 i 22,476 26,815 1-----------------------_·---1--S_i~~iii ___ -~ -_ :__ --------~ -1--_ -11,10~---~~_108 _________ -·-___ --~Cleaning services___ 47,111 I ____ 1_7,_8_89~--.-6?._,0QQ_ El Police Cleaning supplies _ 1 1 _____ -_-_-_7_,9_4-_5 -__ l __ -___ 4_,4_1_0~ _____ 12_,_35_4 _ _ _ _ _ joverti~ -____ _,_, _____ 69~1_21_0~; _____ - 0 _ _ 69,210 ------------------+-lP_ro_t_e_ct_iv_e~g~e_ar ___ -~ ____ 1~2,_8_83--+-i __ __ 10,266 _ __ __ 23,149 Public notification j 126 126 1--~-----+-----,--------------·-=----------------- 1-------------ISignage 1,518 ! .. 482 B Salaries and wages Overtime 100,000 i 52:3,987 _ __ ___ _____ _ _ _ Pa!_!_!ifl!~_~al~ri_~~ _ _ -j ?5_3I3~5 , ,__ ___________ .salaries -I 10,083,292_ :_ ciTransportation _ C~~nin~ supplies i _ _ _--f-----1_,5_0_6~ jMeals and meal supplies !,_ ____ -_+-I ____ 1_7_3_. __ I Protective gear 1 -I 33,819 Grand Total 4,609,286 14,176,303 Methodology 2,000 623,987 ··-753,365 1:_0,0~3,2~ 1,506 173 33,819 18,785,589 The amounts above were compiled using data from the city's accounting system and inputs, estimates and data from department management analysts. Definitions -Cleaning supplies include disinfecting wipes, hand sanitizers, etc. -Meals and meal supplies consist of senior meal program and meals at the emergency operations center. -Protective gear includes, masks, gloves and other protective wear. -IT equipment includes laptops, earbuds, adapters, etc. -Salaries and wages represent staff hours worked on COVID-19 activities. Salaries and wages The chart below includes actual COVID-19 labor cost, by department. Labor costs below include regular and overtime hours. Council Memo -Additional Materials Related to Staff Report Item No. 8 Jan. 26, 2021 Page 3 City of Carlsbad COVID Labor Hours through January 10, 2021 By Department PARKS AND RECREATION, 12% $1,345,253 HUMAN RESOURCES, 4% $413,260 LIBRARY AND CU LTURAL ARTS, 4% $484,143 POLICY/LEADERSHIP GROUP, 7% $815,774 FIRE , 5% $589,966 OTHER,5% $617,615 Funding expected POLICE, 63% $7,228,834 The City of Carlsbad has applied for and received funds which are outlined by category in the analysis below. Funds may be restricted to certain uses which are generally costs to prevent, prepare for, and respond to COVID-19. Council Memo -Additional Materials Related to Staff Report Item No. 8 Jan. 26, 2021 Page 4 COVID-19 Costs and Funding Sources As of January 20, 2021 Expected Cost plus amount of Fund category estimate [1] funding COVID CONTINGENCY $ 3,098,931 $ 3,779,199 GENERAL FUND CARES $ 3,653,774 $ 3,653,774 ECONOMIC CONTINGENCY $ 4,850,000 $ 5,000,000 BUDGETED SALARIES $ 7,182,884 $ 10,836,658 GENERAL FUND SUBTOTAL $ 18,785,589 $ 23,269,631 HUD COVID-19 CARES ACT -$ 255,680 $ 255,680 CDBG COVID-19 CARES ACT $ 1,225,590 $ 1,225,590 UTILITIES (WATER/WASTEWATER) $ 77,103 $ 77,103 TOTAL $ 20,343,962 $ 24,828,004 $ $ $ $ $ $ $ $ $ Less: outside funding received and applied to budgeted salaries $ Less: outside funding not yet received to be applied to budgeted salaries $ Less: Estimated FEMA reimbursement $ Surplus/(deficit) available $ [1] Costs plus estimate is total cost incurred to date plus residual PO amounts. Surplus or (deficit) Note 680,268 [a] -[b] 150,000 [c] 3,653,774 [d] 4,484,042 -[e] -[f] - 4,484,042 {3,539,379) [g] {114,395) {779,199) 51,069 [a] Represents costs expected to be eligible under FEMA from $3M City Council approved contingency for COVID related costs not considered in budget. Funding from FEMA is limited to 75% of expenses. An additional 5% of expenses are allowed to cover administrative costs. FEMA funding request is not yet submitted or approved. [bl Total funding from CARES of $3.6M of which $3.SM from the county and federal government, has been received in the general fund, and $0.lM is pending receipt from the fire and police grants. CARES funding allowed to cover all safety salary expenses (regular time for police and fire). [c] Economic revitalization funding approved by City Council totaling: $SM. The total costs are net of $1S0K of council contingency. [d] This category is funded by $10.8M budgeted salaries, however the costs are split between two categories. The $3.6M safety salaries are included in the cost for category GF CARES. The $7.2M salaries that remain in the cost category budgeted salaries. [e] HUD funding of $256K was received, $118K of funds available have an associated cost in the housing budget. [f] CDBG funding of $1.2M is available but not yet received, and all funds are restricted to CDBG COVID- 19 costs. Of the $1.2M, $0.3M has been allocated to programs and the remaining $0.9M is pending additional approvals. Since this is a reimbursement grant, estimated costs are expected to be equal to funding. [g] The $3.SM in outside funding is CARES fund_i ng received and allocated to budgeted salaries. Council Memo -Additional Materials Related to Staff Report Item No. 8 Jan.26,2021 Page 5 cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Tammy Cloud-McMinn From: Sent: To: Subject: All Receive -Agenda Item # .E_ For the Information of the: CITY COUNCIL oare tPi431 co tC cc ,..,,,. · CM_ /4CM ~f>CM (3) .,..... Karen Hackett <outlook_5B20884DBC93EF63@outlook.com> - Tuesday, January 26, 2021 11 :53 AM City Clerk Today's Council Agenda -Update on COV.ID-19 Response In light of the almost daily changes to the State of California mandates regarding business closures due to COVID-19 -it is not prudent from both an economic and personnel basis to enforce restrictions on already suffering businesses. Our city and village in particular cannot withstand the unconstitutional COVID-19 increased enforcements. This will lead to more business closures, more homelessness and less revenue for the City-especially when a Council salary increase is a current agenda item. Sincerely, Karen Hackett Carlsbad, CA 92008 Sent from Mail for Windows 10 CAUTION:. Do not o en attachments or click on links unless ou recognize the sender and know the content i 1