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 ✓
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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
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