Loading...
HomeMy Public PortalAbout10) 10C Overview of Temporary Emergency Action Related to Continuity of City Services and Personnel and Request for Direction ADMINISTRATIVE SERVICES DEPARTMENT MEMORANDUM DATE: May 5, 2020 TO: The Honorable City Council FROM: Bryan Cook, City Manager SUBJECT: OVERVIEW OF TEMPORARY EMERGENCY ACTION RELATED TO CONTINUITY OF CITY SERVICES AND PERSONNEL AND REQUEST FOR DIRECTION RECOMMENDATION: The City Council is recommended to provide direction as to how the City Manager, as the Director of Emergency Services, is to proceed regarding certain personnel status for City staff and the budgetary considerations associated with such status in the time period after his emergency authority expires on May 15, 2020. BACKGROUND: 1. On January 21, 2020, the first case of the Novel Coronavirus 2019 (COVID -19) was reported. 2. On March 4, 2020, the Health Officer of Los Angeles County declared a local health emergency regarding COVID-19 and the Los Angeles County Board of Supervisors concurrently proclaimed the existence of a local emergency for the County of Los Angeles. 3. On March 4, 2020, Governor Newsom of the State of California declared a State of Emergency in response to the COVID-19. 4. On March 13, 2020, the City Council adopted Resolution No. 20 -5457, declaring a local state of emergency which gave authority to the City Manager in his role as Director of Emergency Services to implement measures in line with stat e and county health officials’ recommendations to slow the spread of COVID-19 while not impacting critical services. 5. On March 18, 2020, in an abundance of caution for the health and safety of City staff and patrons, the City indefinitely closed City buildings to the public and modified services. On the same day, the United States Senate passed the Families First City Council May 5, 2020 Page 2 Coronavirus Response Act (FFCRA) with President Trump signing the bill into law shortly thereafter. 6. On March 19, 2020, to mitigate the sprea d of COVID-19, state and county officials ordered residents to stay home or at their place of residence. On the same day, with the authorization granted by the declaration of local emergency, the City Manager ordered some staff to work from home, though e ssential office workers are to come to the office if needed and if sufficient distancing is maintainable, and essential field staff are to practice all safety and social distancing related to such work in the field. 7. On March 31, 2020, City Council directed the City Manager to continue the implementation of paid administrative leave for employees not working or working from home from April 3, 2020 to May 1, 2020. 8. On April 10, 2020, the County of Los Angeles extended its order requiring residents to stay home or at their place of residence through the date of May 15, 2020. 9. On April 21, 2020, City Council directed the City Manager to continue the implementation of paid administrative leave for employees not working or working from home from May 2, 2020 to May 15, 2020. ANALYSIS: Before the expiration date of May 1 5, 2020, the City Manager is seeking direction from the Council regarding those members of staff who fall into the category of receiving paid administrative leave. Paid administrative leave is a tool that permits the City to temporarily compensate an employee who is ready and able to work but whom the City has directed to remain away from the workplace in the City’s interest. At this time, the County of Los Angeles Department of Public Health (CLADPH) has not announced an extension to their May 15, 2020 deadline. However, staff is anticipating a new deadline to May 31, 2020 to continue the goal of flattening the COVID-19 curve. This report provides the City Council with an update of several key areas of analysis including: payroll costs of the administrative leave and preliminary financial analysis of the immediate term of this event. Financial Considerations Immediate Payroll Costs of Administrative Leave The estimated costs for the administrative leave for the following periods are: City Council May 5, 2020 Page 3 Period: Source of Parameter Est. Cost: May 16 to May 31, 2020 Anticipated continuing social distancing protocols. $ 32,900 Please note that the costs are budgeted in the current fiscal year (FY) 2019 -2020 in the form of regular employee compensation. Hence, no additional appropriation is required at this time. The City continues to be legally obligated to provide at least a partially-compensated leave under the new Families First Coronavirus Response Act (FFCRA) to eligible employees for qualifying reasons. FFCRA went into effect on April 1, 2020, and, where applicable, will require the City to provide leave upon an employee’s request. The availability of emergency paid sick leave and extended FMLA leave under FFCRA likely takes on greater significance for employees with non-worked hours should the Council direct the City Manager not to extend administrative leave for affected employees. Revenue Reductions It remains difficult at this time to determine the size of the impact of the COVID-19 pandemic. However, the widespread effect on sales tax revenue is expected to be more apparent at the end of May 2020 after the first quarter 2020 (January to March) Sales and Use Tax Returns are submitted by businesses to California Department of Tax and Fee Administration (CDTFA). Additionally, the impact of the State program of the sales tax payment deferrals from the City’s businesses is unknown until the requests are filed with CDTFA. Currently, the City is able to handle the anticipated revenue reductions and the delay in the collection of sales tax revenues in FY 2019-20. City Financial Stability – Planning for an Emergency The fiscal health of the City is able to temporarily handle the potential revenue losses because of the accumulation of the City’s General Fund reserves over the last decade. However, should revenues be reduced significantly to the point of potential impact on City operations, options to address the impact will be discussed with Council. CONCLUSION The City will continue to monitor the impacts of COVID-19 and implementing recommendations of State and County health officials. Staff continues to respond quickly with the safety and well-being of the community and City employees as its priority while closely monitoring the effect to the City’s long-term financial health. To address the impact of City employees not working or working from home , the City Council is asked to consider directing the City Manager to implement one of the City Council May 5, 2020 Page 4 following: 1. Paid administrative leave for the period May 16 to May 31, 2020, or 2. An alternative approach such as: a. Use of Accrued Leave; or b. Reduction in Hours; or c. Furloughs Regardless of the direction, the City will be bound by the FFCRA and the financial implications thereof. CITY STRATEGIC GOAL: Actions contained in this report align with the City’s strategic goal of Good Governance. FISCAL IMPACT: There are no additional appropriations recommended at this time.