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HomeMy WebLinkAboutAgenda Report - September 2, 2020 C-14AGENDA ITEM c-|4 Crrv or Lour CouNcrr, C ovrMUNrcATroN IM AGENDA TITLE: MEETING DATE: PREPARED BY: Authorize the Mayor, on Behalf of the City Council, to Send a Letter Urging Congress to Support $500 Billion in Direct Flexible FederalAssistance to Local Governments to Sustain Core Services for Residents and Support Public Health and Economic Recovery September 2,2020 City Clerk RECOMMENDED AGTION: Authorize the Mayor, on behalf of the City Council, to send a letter urging Congress to support $500 billion in direct flexible federal ffi 5:i?::liffi l,3i,itiì:"il::Li:iiiHi;#:".""'"i: BACKGROUND INFORMATION: On Monday, July 27, 2020, Senate Majority Leader Mitch McConnell (R-KY) introduced the HEALS Act in the U.S. Senate. According to Senator McConnell the pillars of the HEALS Act are economic assistance, liability protection, and schools. Additionally, Senator Chuck Grassley (R-lA) stated that this proposal will provide greater flexibílity in how states can use their monies from the Coronavirus Relief Fund (CRF), including backfilling lost revenue. Specifically, CRF funds can be used to cover a revenue shortfall if the state government has distributed 25 percent of the money downstream - for example, from a state to a city. Additionally, a government may only use 25 percent of allocated money to back fill lost revenue. While this is accurate, it is important to note that the HEALS Act does not contain any additional funds for states or local governments. The National League of Cities (NLC) has advocated and continues to lobby for direct aid to cities. Moreover, the NLC has reiterated in a letter to Treasury Secretary Steven Mnuchin that flexibitity alone is insufficient. The League of California Cities is requesting cities throughout the state contact their Senators and Congressional Representative asking that they support the inclusion of funding for local governments. Attached is a draft of the proposed letter, which will be mailed to the following: . U.S. Senator Diane Feinstein. U.S. Senator Kamala Harris. U.S. Representative Jerry McNerney For the reasons stated above and in the attached draft correspondence, it is recommended that the City Council authorize the execution and delivery of the proposed correspondence. FISCAL IMPACT: Not applicable. FUND¡NG AVAILABLE: Not applicable. ity Clerk APPROVED S \\cvcfilvO'l\administration$\Administration\CLERK\Council\COUNCOM\CC CACitiesLetter.doc Manager 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 August 31, 2020 The Honorable <<FIRST NAME>> <<LAST NAME>> <<CONGRESSMEMBER OR SENATOR>> <<ADDRESS>> Washington, D.C. 2005 Dear Congressmember <<FIRST NAME>> <<LAST NAME>>, On behalf of the City of Lodi, I urge you to support $500 billion in direct and flexible federal assistance to local governments of all sizes to sustain core services for our residents and to support public health and economic recovery in our communities. The COVID-19 pandemic has impacted municipal budgets across the country in ways that local governments could not have foreseen. Serving on the front lines of fighting this pandemic, California cities have stepped up by enacting emergency orders, setting up testing, protecting residents, supporting vulnerable populations, and helping Main Street businesses stay afloat. These actions have saved lives, but they have come at a cost. This unprecedented and multifaceted COVID-19 response, including the shutdown of our local economies, has left California cities facing a nearly $7 billion revenue shortfall over the next two years. This shortfall continues to grow by billions of dollars as modified stay-at-home orders have extended into the summer months. At the same time, California cities have incurred significant unplanned expenditures. Without significant new federal resources to offset expenses and address revenue shortfalls due to COVID-19, cities, who are required to balance their budgets every year, have no choice but to reduce or eliminate critical public services that our residents rely upon and layoff city employees. In a recent survey by the League of California Cities, ninety percent of cities say they will have to cut staff or decrease city services to residents, and nearly seventy-five percent of cities report they may have to take both actions. Cities need Congress to deliver this assistance with no minimum population threshold determining eligibility for funding to all of our communities now. We cannot afford to wait. The funding provided through the CARES Act was not enough to ensure that all local governments have the resources to stabilize local budgets and continue delivering local services, fighting this pandemic and supporting local recovery. 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. Cities are the economic engines of our state and the backbone of this nation. Recovery from this unprecedented crisis will only be realized at the local level with strong support from the federal government. We implore you to provide this assistance to our cities, so that we can continue to be your strong partner in California. If you have any questions, please contact me at 209-747-5583. Sincerely, Doug Kuehne Mayor, City of Lodi CC: The Honorable Mitch McConnell, Majority Leader, U.S. Senate: katelyn_bunning@mcconnell.senate.gov, Stefanie_Muchow@mcconnell.senate.gov, Scott_Raab@mcconnell.senate.gov, Sharon_Soderstrom@mcconnell.senate.gov The Honorable Chuck Schumer, Minority Leader, U.S. Senate: mike_lynch@schumer.senate.gov, erin_sager@schumer.senate.gov, meghan_taira@schumer.senate.gov The Honorable Nancy Pelosi, Speaker of the House, U.S. House of Representatives: dan.bernal@mail.house.gov, Diane.Dewhirst@mail.house.gov, robert.edmonson@mail.house.gov, Drew.Hammill@mail.house.gov, George.Kundanis@mail.house.gov, Terri.McCullough@mail.house.gov, The Honorable Kevin McCarthy, Minority Leader, U.S. House of Representatives: will.dunham@mail.house.gov, robin.lake-foster@mail.house.gov, kyle.lombardi@mail.house.gov, daniel.meyer@mail.house.gov, james.min@mail.house.gov, League of California Cities: SupportLocalRecovery@cacities.org