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Item 2 - Reso to Continue the Existence of a Local Emergency due to the Novel Coronavirus COVID-19 PandemicJuly 7, 2020, Item #2DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT City of Poway July 7, 2020 Honorable Mayor and Members of the City Council Jon M. Canavan, Fire Chief (3 Jon M. Canavan, Fire Chief (858) 668-4461 or jcanavan@poway.org CITY COUNCIL Resolution to Continue the Existence of a Local Emergency Within the City of Poway Due to the Novel Coronavirus (COVID-19) Global Pandemic The Novel Coronavirus (COVID-19) global pandemic continues to cause unprecedented impacts on all economic and social segments of the United States. Federal, state, and county directives, mandates and orders to prevent, control and manage the spread of COVID-19 have, and continue to, impact Poway residents, businesses and visitors. On March 18, 2020, the City Council approved a resolution proclaiming a local emergency. The adopted resolution requires the City Council to either continue the emergency action or declare the emergency ended at each regular meeting. Recommended Action: It is recommended that the City Council approve a resolution continuing the Proclamation of Local Emergency authorizing the City Manager to take necessary actions to protect the public and welfare of the City from the serious and imminent threat of COVID-19. This action requires a four-fifths (4/5) vote of the City Council. Discussion: The COVID-19 global pandemic continues to impact business, education, healthcare, military, and social segments of the United States. COVI D-19 has resulted in a swift economic slowdown and high unemployment rates. Federal, state, and county directives, mandates, orders and guidelines have been issued to prevent, control and manage the spread of COVID-19. While efforts are focused on re-opening the economy and relaxing restrictions, impact on Poway residents, businesses and visitors continues. In response to the COVID-19 global pandemic, and its impact on Poway, the City Manager, serving as Director of Emergency Services for the City of Poway, proclaimed a local emergency on March 13, 2020. On March 18, 2020, the City Council approved Resolution No. 20-013 ratifying the City Manager's Proclamation of Local Emergency. On April 7, April 21, May 5, May 19,.June 2 and June 16, 2020, the City Council approved to continue the emergency action. The adopted resolution requires the City Council to either continue the emergency action or declare the emergency ended at each regular meeting. 1 of 5 July 7, 2020, Item #2Environmental Review: This action is not subject to CEQA review. Fiscal Impact: City costs to respond to COVID-19 are estimated at $308,273 as of June 19, 2020. The total fiscal impact is unknown at this time. Per the City Council adopted General Fund Reserve policy, the City maintains a General Fund Reserve of 45 percent of the budgeted annual General Fund operating expenditures, or $20,961,853 as of June 30, 2019. Within that 45 percent, $13,974,863 is set aside for Extreme Events/Public Safety. Based upon the City's reserve policy, there are adequate reserves to cover the costs to respond to this health emergency. Further, staff believes some of the costs are recoverable under State and Federal Disaster programs. Amounts recovered under these programs will be used to replenish the General Fund reserve. Pursuant to the reserve policy, staff will return with a plan to replenish any General Fund reserves not replenished under a State or Federal Disaster program. Staff will recommend applicable budget adjustments prior to the completion of the current fiscal year. In addition to using reserves to respond to COVID-19, City Council approved $2,000,000 on April 16, 2020 to fund the Poway Emergency Assistance Recovery Loan (PEARL) program for small businesses. The PEARL program's goal is to offer financial assistance to small businesses located in Poway by complementing existing state and federal loan programs and to provide a financial bridge to businesses to survive the current emergency. The PEARL program funding of $2,000,000 represents approximately 14 percent of the Extreme Events/Public Safety reserve discussed above and provides loans of up to $50,000 to eligible business. As of May 19, 2020, staff has received 77 applications requesting $2,727,165 in loans. Based on staff's review, 35 loans totaling $1,385,326 million have been approved. Staff has requested additional information from 19 applicants in order to determine their eligibility for the program. Thirteen loan requests were denied, and six other businesses approved for loans declined funds after receiving the Paycheck Protection Program (PPP) loan from the U.S. Small Business administration. Four applicants chose to withdraw their applications and one loan has been repaid. The reserve fund will be replenished from the repayment of PEARL loans over a three-year period following the end of the local COVID-19 emergency. This period falls within the General Fund Reserve Policy's direction to fully replenish reserves within five years of use. Public Notification: None. Attachments: A. Resolution B. Proclamation of Local Emergency Reviewed/ Approved By: Assistant City Manager 2 of 5 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~ City Manager ATTACHMENT AJuly 7, 2020, Item #2RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, FINDING AND DECLARING THE CONTINUED EXISTENCE OF AN EMERGENCY WITHIN THE CITY DUE TO THE NOVEL CORONAVIRUS (COVID-19) GLOBAL PANDEMIC WHEREAS, the Novel Coronavirus (COVID-19) global pandemic in the City of Poway, commencing on or about January 24, 2020 that creates a threat to public health and safety; WHEREAS, Government Code section 8630 and Poway Municipal Code (PMC) Section 2.12.060 empower the City Manager, acting as the Director of Emergency Services, to proclaim the existence of a local emergency when the City is affected by a public calamity, and the City Council is not in session; WHEREAS, on March 13, 2020, the City Manager, acting pursuant to Government Code section 8630 and PMC section 2.12.060, proclaimed the existence of a local emergency based on conditions of extreme peril to the health and safety of persons caused by the Novel Coronavirus (COVID-19) global pandemic; WHEREAS, on March 18, 2020, the City Council, acting pursuant to Government Code section 8630 and PMC section 2.12.065, ratified the existence of a local emergency within seven (7) days of a Proclamation of Local Emergency by the City Manager; WHEREAS, the City Council, acting pursuant to PMC section 2.12.065, shall review the need for a continuing emergency declaration at regularly scheduled meetings at least every 21 days until the emergency is terminated; WHEREAS, the City Council, acting pursuant to PMC section 2.12.065, approved extending the emergency declaration during regularly scheduled meetings on April 7, April 21, May 5, May 19, June 2 and June 16, 2020; WHEREAS, Public Contract Code Section 20168 provides that the City Council may pass by four-fifths (4/5) vote, a resolution declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property; WHEREAS, upon adoption of such resolution, the City Manager may expend any sum required in the emergency and report the same to the City Council in accordance with Public Contract Code Section 22050; WHEREAS, if such expenditure is ordered, the City Council shall review the emergency action at each regular meeting, to determine if there is a need to continue the action or if the Proclamation of Local Emergency may be terminated; and WHEREAS, such the Novel Coronavirus (COVID-19) global pandemic constitute an emergency within the terms of Public Contract Code Sections 20168 and 22050 which requires that the City Manager be able to act quickly and without complying with the notice and bidding procedures of the Public Contract Code to safeguard life, health, or property. 3 of 5 July 7, 2020, Item #2Resolution No. 20-Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway hereby finds and declares: SECTION 1: An emergency continues to exist within the City as the result of the Novel Coronavirus (COVID-19) global pandemic; and (a) The continuing threat of the Novel Coronavirus (COVID-19) global pandemic requires that the City be able to expend public money in order to safeguard life, health, or property; (b) The City Manager, as the City's Personnel Officer, is authorized to take actions necessary to alter employee leave policies and ensure a safe and healthy workforce; (c) The City Manager is authorized to safeguard life, health, or property without complying with notice or bidding procedures; and (d) Once such expenditure is made, the City Manager shall report the conditions to the City Council at each regular meeting, at which time the City Council shall either continue the emergency action or declare the emergency ended. SECTION 2: This Proclamation of Local Emergency and all subsequent resolutions in connection herewith shall require a four-fifths (4/5) vote of the City Council. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 7th day of July, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Faviola Medina, CMC, City Clerk 4 of 5 PROCLAMATION OF LOCAL EMERGENCY WHEREAS, section 2.12.060 of the Poway Municipal Code empowers the Director of Emergency SeNices to proclaim the existence or threatened existence of a local emergency when the City is affected or likely to be affected by a public calamity and the City Council is not in session; WHEREAS, the City Manager, as Director of Emergency SeNices of the City of Poway, does hereby find that conditions of extreme peril to the safety of persons and property have arisen within the City of Poway, caused by the Novel Coronavirus (COVID-19) commencing on January 24, 2020; WHEREAS, that the City Council of the City of Poway is not in session and cannot immediately be called into session; and WHEREAS, this Proclamation of Local Emergency will be ratified by the City Council within seven days of being issued. NOW, THEREFORE, IT IS HEREBY PROCLAIMED by the Director of Emergency SeNices for the City of Poway, that a local emergency now exists throughout the City and that said local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council; IT IS FURTHER PROCLAIMED AND ORDERED that during the existence of said local emergency the powers, functions, and duties of the emergency organization of this City shall be those prescribed by state law, ordinances, and resolutions of this City, and by the City of Poway Emergency Plan; and IT IS FURTHER PROCLAIMED AND ORDERED that a copy of this Proclamation of Local Emergency be forwarded to the State Director of the Governor's Office of Emergency SeNices with a request that; 1.The State Director find the Proclamation of Local Emergency acceptable in accordance with provisions of the Natural Disaster Assistance Act; and 2.The State Director forward this Proclamation, and request for a State Proclamation and Presidential Declaration of Emergency, to the Governor of California forconsideration and action. PASSED AND ADOPTED by the Director of Emergency SeNices for the City of Poway this 13th day of March 2020. Chr´┐Ż Director of Emergency SeNices 5 of 5 ATTACHMENT B July 7, 2020, Item #2