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Authorize the use of up to $2,000,000 in General Fund Contingency to pay for costs related to COVID-19 emergency response, pending reimbursement from state and federal emergency appropriations (4/5 vote required); and Approve an Appropriation Transfer Request (ATR) increasing expenditures in Fund 282 County Disaster Fund by $2,000,000 funded by a transfer from General Fund Contingency (4/5 vote required)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The County Administrator’s Office recommends that the Board of Supervisors:
1. Authorize the use of up to $2,000,000 in General Fund Contingency to pay for costs related to COVID-19 emergency response, pending reimbursement from state and federal emergency appropriations (4/5 vote required); and
2. Approve an Appropriation Transfer Request (ATR) increasing expenditures in Fund 282 County Disaster Fund by $2,000,000 funded by a transfer from General Fund Contingency (4/5 vote required).
SUMMARY/DISCUSSION:
In response to the COVID-19 outbreak the following actions have occurred:
On February 27, 2020, Birgitta Corsello, County Administrator, signed a Proclamation of Local Emergency in response to an extreme threat to public health that now exists in Solano County due to the identification of the Novel Coronavirus (COVID-19) in Solano County.
On March 3, 2020 your Board ratified this Proclamation of Local Emergency making Solano County eligible for any available State and federal relief funds as may be available to reimburse the County for expenses it incurs in addressing this emergency.
On March 4, 2020 the Governor of California declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for broader spread of COVID-19.
On March 6, 2020, President Trump signed the Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020. This bill provides $8.3 billion for COVID-19 response activities. To support governmental public health, the Centers for Disease Control and Prevention has awarded funding to eligible jurisdictions to provide resources to prevent, prepare for and respond to COVID-19. The funding is intended for state, local, territorial and tribal health departments to carry out surveillance, epidemiology, laboratory testing, infection control, mitigation, communications and other preparedness and response activities.
On March 18th, 2020 the Solano County Health Officer issued an order directing residents in Solano County to “shelter at home” through April 6, 2020 and prohibiting any public or private gatherings, including places of work, that do not allow for participants to maintain a minimum of six feet distance apart.
On March 19, 2020 the Governor of California issued Executive Order N33-20 directing all individuals living in the State of California to stay home or at their place of residence except as needed to maintain continuity of operation of the federal critical infrastructure sectors as outlined in the order. This order remains in place until further notice from the Governor.
On March 30, 2020 the Solano County Health Officer issued order No. 2020-04 directing individuals to continue to “shelter at home” through April 30, 2020, except that they may leave to provide or receive certain essential services or engage in certain essential activities and work for essential business and essential governmental services, exempting individuals experiencing homelessness from this order but urging them to find shelter and government agencies to provide it, directing all businesses and governmental agencies to cease no essential operations at physical location in the County, prohibiting all non-essential gatherings of any number of individuals, and prohibiting all non-essential travel. This health order has been extended until May 17, 2020.
Situational updates continue from Dr. Bela Matyas, Public Health Officer, regarding the activities and efforts relating to the Coronavirus Disease 2019 (COVID-19) epidemic. In response to the public health emergency, Solano County is continuing to operate a virtual Emergency Operations Center through the Solano County Sheriff’s Office, and a Department Emergency Operations Center through Public Health. In the Emergency Operations Centers and directly through County Departments, costs related to COVID-19 response are being incurred and tracked.
As County Departments are incurring costs related to COVID-19, the County Administrator has established a Budget Unit for tracking purposes in the County Disaster Fund (Fund 282). It is recommended that the Board authorize the use of up to $2,000,000 in General Fund Contingency to pay for costs related to COVID-19 emergency response, thereby funding the COVID-19 Budget in the Disaster Fund. COVID-19 costs may be subject to reimbursement from the Federal and State government.
FINANCIAL IMPACT:
The County’s actual costs reported for COVID-19 as of April 28, 2020 are approximately $795,000. However, additional costs are expected as response to COVID-19 continues.
Based on the declaration of emergency by both the Federal & State government, costs related to COVID-19 response are anticipated to be reimbursed. At this time reimbursement rates and determination of reimbursable costs continue to be under review. In typical emergency declarations the Federal government reimburses up to 75% of reimbursable costs incurred. State reimbursements typically cover the remaining 25% however, at this time the State actions related to approval of reimbursement are not yet complete. County Emergency Operations staff are working closely with CalOES and are monitoring Statewide authorization for reimbursement.
It is recommended that the Board authorize the use of up to $2.0 million in General Fund Contingency to pay for costs related to COVID-19 emergency response. The General Fund Contingency current balance is $12.0 million. The use of up to $2.0 million is anticipated to provide sufficient funding for COVID-19 emergency response, based on costs incurred as of April 28, 2020. This funding would also allow for the County to incur additional costs as the COVID-19 response continues. County staff will continue to track and monitor COVID-19 costs and return to the Board should additional funds be required.
The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2019/20 Adopted Budget.
ALTERNATIVES:
The Board could choose not to authorize use of General Fund Contingencies to cover costs associated with COVID-19 emergency response. This is not recommended as these funds are established by the Board of Supervisors to be used for one-time, unexpected needs that arise outside of the regular budget process.
OTHER AGENCY INVOLVEMENT:
The Solano County Office of Emergency Services and the Public Health Department will provide updates to the Board as the recovery effort continues.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION