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HomeMy WebLinkAboutAgenda Report - September 2, 2020 C-13AGENDA ITEM Gt3 Crrv or Lonr C oullc rr-, C ovTMUNICATION TM AGENDA TITLE: MEETING DATE: September 2,2020 PREPARED BY: City Clerk Authorize the Mayor, on Behalf of the City Council to Send a Letter of Support For the Coalition to Support Local Recovery and the League of California Cities (LOCC) COVID-19 Recovery Efforts RECOMMENDED ACTION Authorize the Mayor, on behalf of the City Council to send a letter of support for the Coalition to Support Local Recovery and the League of California Cities (LOCC) COVID-19 recovery efforts. BACKGROUND INFORMATION: On March 27, 2020 the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law providing over $2 trillionin economic relief and assistance to cities, states, tribal communities, companies and individuals and on May 15, 2020, the U.S. House of Representatives passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act which would provide direct and flexible federal assistance for all California cities to protect localjobs and core services. On the Senate side, U.S. Senators Bob Menendez (D-NJ) and Bill Cassidy, M.D. (R-LA) formally introduced the bipartisan State and MunicipalAssistance for Recovery and Transition (SMART) Act. This legislation aims to deliver critical, federal relief and funding to cities, towns, and villages on the frontlines of America's response to and recovery from COVID-19 by establishing a $500 billion fund to help local governments address the impact of COVID-19. Cities throughout California and the nation are facing severe revenue shortfalls as a result of the COVID- 19 pandemic. Revenue shortfalls may impact core city services, and for many cities, it already has. According to the LOCC website, cities face a $7 billion revenue shortfall over the next two years due to the pandemic and response. An LOCC data analysis shows that this shortfall grows by billions of dollars as modified stay-at-home orders extend into the summer months. For many cities, this means fewer firefighters and police officers to answer emergency calls, delayed repairs to streets and roads, reduced garbage pickup frequency, and limited hours of operation for parks and senior centers. With drastically reduced revenues, many cities will no longer be able to fund programs that support businesses and local economic development projects. The LOCC is organizing a coalition to effectively lobby officials at the federal and state level over the next couple of months to ensure local governments receive much-needed recovery funds. As part of the Coalition's campaign, the LOCC is currently encouraging cities to send a letter to the Governor with information regarding the needs of cities for relief in response to COVID-19. A sample letter of what is currently proposed is provided as Attachment 1. APPROVE City Manager The Support Local Recovery Coalition goals include: State Government: Secure $7 billion in direct and flexible funding to support critical local services and secure CARES Act funding for all cities for COVID-19-related expenditures. Federal Government: Secure $500 billion in direct and flexible funding for all cities nationwide to support critical local services. As reflected in the estimates, there is a significant amount of money at stake for our City in the bills being contemplated by Congress. Once a package is approved by Congress, it appears the Governor will allocate funds to California cities. For the reasons stated above and in the attached draft correspondence, it is recommended that the City Council authorize the execution and delivery of the proposed correspondence. FISCAL IMPACT Not applicable FUNDING AVAILABLE: Not applicable nifer mtr City Cl o a CITY COUNCIL DOUG KUEHNE, Mayor ALAN NAKANISHI, Mayor Pro Tempore MARK CHANDLER JOANNE MOUNCE CITY OF LODI 2015 “Wine Region of the Year” CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209)333-6702 / FAX (209) 333-6807 www.lodi.gov cityclerk@lodi.gov STEPHEN SCHWABAUER City Manager JENNIFER CUSMIR City Clerk JANICE D. MAGDICH City Attorney September 2, 2020 Honorable Gavin Newsom Governor, State of California State Capitol Sacramento, CA 95814 VIA E-mail: ExternalAffairs@gov.ca.gov Dear Governor Newsom: The City of Lodi thanks you for your leadership and efforts to protect and support Californians during this unprecedented public health crisis. Cities remain on the front line helping residents stay safe and in their homes, delivering emergency services, and supporting local businesses and community organizations. However, as emergency costs continue to grow, city revenues to fund local services are plummeting. COVID-19 is having devastating impacts on city budgets and services statewide. Based on the League of California Cities analysis, California cities are projecting a nearly $7 billion general revenue shortfall over the next two fiscal years. This shortfall will grow by billions of dollars if stay-at-home orders to protect public health extend into the summer months and beyond. These shortfalls have already impacted our core City services, including police, fire service, library parks and recreation, emergency management, and have required the City to not fill vacant positions, issue lay-offs and furloughs, which will further impact core City services for residents. Since the beginning of the COVID-19 crisis, the City of Lodi has stepped up to protect and serve our community. The City has partnered with the school district and hospital to get issue safety messaging. We have implemented the Great Plates Program to feed our vulnerable seniors. We have opened up free public spaces for businesses to operate consistent with safety requirements. We issued free permits and inspections to meet business need to safety requirements. We implemented a plan to install homeless hygiene stations to prevent spread in the homeless community. We ceased all late utility fees and shutoffs for non-payment, we also issued over 3 million dollars in utility credits to assist our businesses, and residents keep their power on all while securing the vast quantity of PPE to continue to serve our residents. The necessary measures our city has taken are costly. In order to continue to be a full partner with the state in saving lives, protecting our communities, and ultimately recovering from this crisis, we need your help. ATTACHMENT 1 The City of Lodi has joined the Support Local Recovery coalition and we are calling on you to immediately support the following actions: • Provide $7 billion in direct and flexible state funding to support critical local services and allocate CARES Act funding for all cities for COVID-19-related expenditures. • Advocate to secure $500 billion in direct and flexible funding from the federal government for all cities nationwide to support critical local services. The City of Lodi appreciates your consideration of our requests and look forward to further discussing in the coming days how together we can continue to best protect Californians and reopen our economy. Thank you again for your leadership and partnership during these uncertain times. Sincerely, Doug Kuehne Mayor City of Lodi Cc: Senator Cathleen Galgiani Assembly Member Jim Cooper Bismarck Obando, League of California Cities, SupportLocalRecovery@cacities.org