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
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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:
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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
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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.