Item No. 6.
| MEETING DATE: September 21, 2020 |
|
| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Rob Ferrier, Assistant to the City Manager |
| SUBJECT: | APPROVE AND ADOPT A RESOLUTION REAFFIRMING RESOLUTION NO. 5934 AND RATIFY THE DECLARATION OF A LOCAL EMERGENCY |
RECOMMENDATION:
That the City Council:
A. Receive this report; and
B. APPROVE AND ADOPT RESOLUTION NO. ______ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, REAFFIRMING RESOLUTION NO. 5934 WHICH RATIFIED THE DIRECTOR OF EMERGENCY SERVICES' DECLARATION OF THE EXISTENCE OF A LOCAL EMERGENCY.
B. APPROVE AND ADOPT RESOLUTION NO. ______ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, REAFFIRMING RESOLUTION NO. 5934 WHICH RATIFIED THE DIRECTOR OF EMERGENCY SERVICES' DECLARATION OF THE EXISTENCE OF A LOCAL EMERGENCY.
DISCUSSION:
On January 31, 2020, the United States federal government declared a nationwide emergency in response to growing concern for public health related to the novel coronavirus (COVID-19) pandemic. For this same reason, on February 26, 2020, the County of Orange declared a local health emergency and on March 4, 2020, Governor Newsom declared a state of emergency in California.
On March 16, 2020, in response to these actions, and pursuant to Government Code Section 8550 et seq., including Section 8558(c), City Manager Sadro, acting in his lawful capacity as Director of Emergency Services for the City of La Habra, proclaimed the existence of a local emergency in La Habra (Attachment 1). On that same day, the City Council ratified the proclamation through its approval of Resolution No. 5934 (Attachment 2).
Pursuant to Government Code Section 8630, the City Council is required to review the need for continuing the local emergency at least once every 60 days until the governing body (i.e. the City Council) terminates the local emergency. Given continuing actions by the federal government, the State of California, and the County of Orange to control the spread of COVID-19, the City Council reaffirmed the 60-day emergency declaration by approving Resolution No. 5943 on May 4, 2020 (Attachment 3), and again on June 15, 2020, through Resolution No. 5955 (Attachment 4), and again on August 3, 2020, through Resolution No. 5967 (Attachment 5).
It does not appear that the local emergency related to the COVID-19 pandemic will conclude within the extended 60-day window approved by the August 3 Council reaffirmation, which is scheduled to end on October 3, 2020. Staff therefore recommends the City Council adopt the attached draft resolution (Attachment 6) and reaffirm the local emergency declaration for an additional 60-day period. Staff will continue to monitor County, State and Federal actions regarding the pandemic emergency and will advise Council at a future date whether the local emergency declaration should once again be extended, or if it can be terminated.
On March 16, 2020, in response to these actions, and pursuant to Government Code Section 8550 et seq., including Section 8558(c), City Manager Sadro, acting in his lawful capacity as Director of Emergency Services for the City of La Habra, proclaimed the existence of a local emergency in La Habra (Attachment 1). On that same day, the City Council ratified the proclamation through its approval of Resolution No. 5934 (Attachment 2).
Pursuant to Government Code Section 8630, the City Council is required to review the need for continuing the local emergency at least once every 60 days until the governing body (i.e. the City Council) terminates the local emergency. Given continuing actions by the federal government, the State of California, and the County of Orange to control the spread of COVID-19, the City Council reaffirmed the 60-day emergency declaration by approving Resolution No. 5943 on May 4, 2020 (Attachment 3), and again on June 15, 2020, through Resolution No. 5955 (Attachment 4), and again on August 3, 2020, through Resolution No. 5967 (Attachment 5).
It does not appear that the local emergency related to the COVID-19 pandemic will conclude within the extended 60-day window approved by the August 3 Council reaffirmation, which is scheduled to end on October 3, 2020. Staff therefore recommends the City Council adopt the attached draft resolution (Attachment 6) and reaffirm the local emergency declaration for an additional 60-day period. Staff will continue to monitor County, State and Federal actions regarding the pandemic emergency and will advise Council at a future date whether the local emergency declaration should once again be extended, or if it can be terminated.
FISCAL IMPACT/SOURCE OF FUNDING:
The COVID-19 pandemic has had an immediate and severe impact on City finances, most notably millions of dollars in losses from sales/transaction tax revenues. While the fiscal effects of COVID-19 are not unique to La Habra, the impact of the pandemic on the economy, in addition to actions taken by the City in response to the pandemic, have had a negative impact on other General Fund revenues.
For example, General Fund revenue from plan check fees for the period between January through June 2020 have declined 39 percent compared to the same period in the prior year, dropping from approximately $301,000 to $183,000. In addition, permit fees for the same time span are down 47 percent, dropping from approximately $361,000 to $193,000. While the majority of these declines are a direct result of the slowing economy, actions by taken by the City to help the local business community, such as temporarily waiving certain permit, plan check and inspection fee for certain improvements, has also reduced revenue to the City.
For example, General Fund revenue from plan check fees for the period between January through June 2020 have declined 39 percent compared to the same period in the prior year, dropping from approximately $301,000 to $183,000. In addition, permit fees for the same time span are down 47 percent, dropping from approximately $361,000 to $193,000. While the majority of these declines are a direct result of the slowing economy, actions by taken by the City to help the local business community, such as temporarily waiving certain permit, plan check and inspection fee for certain improvements, has also reduced revenue to the City.
GENERAL PLAN RELEVANCE:
ED 9.1 Balanced Fiscal Practices