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HomeMy WebLinkAboutAgenda Report - June 17, 2020 H-01Agenda ltem f{-l Crry oF LoDI COUnCI CoMMUNICATIoN fM AGENDA TITLE: IUIEETING DATE: PREPARED BY: A Resolution of the Lodi City Council Authorizing Appropriation and Expendíture of Fiscal Year 2019-20 Funds in the Amount of $1,138,037 to be Reimbursed by FEMA and State Government at a Rate of 93.75 Percent for the lmplementation of the Great Plates Delivered Program, and Authorizing Carry Forward of Unspent Budget into Fiscal Year 2020-21. June 17,2020 Business Development Manager RECOMMENDED AGTION: A Resolution of the Lodi City Council authorizing appropriation and expenditure of Fiscal Year 2O19-20 funds in the amount of $1,138,037 to be Reimbursed by FEMA and State Government at a rate of 93.75 percent for the implementation of the Great Plates Delivered Program, and authorizing carry forward of unspent budget into Fiscal Year 2O20-21. BACKGROUND INFORMATION: ln early May, the City of Lodi made the decision to participate in the Great Plates Delivered program, a program designed to provide meals to adults 65 and older, and adults 60-64 who are a high-risk for COVID-19, and to provide economic stimulus for restaurants. This program, the first of its kind in the nation, was developed by the State of California in partnership with FEMA to provide senior citizens access to meals while staying at home during the COVID-19 pandemic, and to support restaurants struggling to stay in business. To be reimbursed by FEMA at a 75 percent rate, and Cal OES, at an 18.75 percent rate, the City of Lodi will participate by contributing 6.25 percent, and serve as local administrator of the program. lmportantly, in its role as local administrator, the City is responsible for all program administration including a timely payment of invoices to local participating restaurants at a rate of $66 per day per senior citizen. On May 11, 2020,local restaurants began preparing and delivering meals to 42 senior citizens. Today, the program prepares and delivers meals to 309 senior citizens, three times per day and seven days per week. As of June 8, the program has delivered 18,188 meals at a cost of $401,595. The anticipated end date of the program is July 10,2020. Should 30 seniors be added weekly, the total cost of the program is estimated to be $1,138,037, The City has applied for an expedited reimbursement of $163,350 which has been approved. The City will apply for additional expedited reimbursements during the program period ending July 10, 2020, and thereafter. This resolution authorizing an additional revenue and expenditure appropriation will allow for the City to process and pay the program invoices from local restaurants, ln communication with FEMA and CalOES, the City was anticipating expedited funding of 50 percent of total estimated costs. This application was submitted timely to both FEMA and CalOES, and showed an estimate of $435,600 in eligible costs. To date the City has only received $4,084, far shy of the $217,800 which would represent 50 percent, We continue to work closely with FEMA and CaIOES staff to advance APPROVED: Ste nager reimbursements as quickly as possible. While the City has a strong cash position and can carry this program through July 10 and further at stated reimbursement rates, staff is concerned with program "creep" and the possibility that federal and state officials may not be able to meet their obligations at some point leaving the City to foot the entire bill of a popular program. In addition, the tonger the program runs, the more residents become reliant on the service. This may lead to pressure to continue beyond the disasterperiod. The General Fund and possibly Community Development Block Grant funds are the City's only funding sources for this program. With general revenues falling and the possibility that other services wiil be reduced to balance the budget in the near future, the City cannot atford to take this obligation long-term without equally offsetting cost reductions elsewhere. FISCAL IMPAGT: This resolution will appropriate funds from FY 2O1g-20 unallocated fund balance in the amount of $1,138,037 to be reimbursed by FEMA and State P.ï"iii¡å1 ,if i':xï :l l,i¡ í uo,f åT3T " J3;, " nv or Lo d i' s ri n a I pa rt i ci p at i on FUNDING AVAILABLE: Revenue Appropriation Account 10095000.ss020 (91,066,910) Expenditure Appropriation Account 10095000.723SS ($1,1 38,037) Andrew Keys Andrew Keys, Deputy City Manager/ lnternal Services Director Gity Manager. signature: Añ'*TtW Email: akeys@[odi.gov