REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Negotiate and Execute an Emergency Assistance Agreement With Sunnyvale Community Services Related to the Santa Clara County Health Officer’s Shelter at Place of Residence Order and Approve Budget Modification No. 25 in the Amount of $250,000 and Authorize the City Manager to Suspend Interruption of Water Service for a 60-day Period
Report
BACKGROUND
The City, along with the Country, is currently responding to the impacts of the Novel Coronavirus (COVID-19) pandemic. As the situation is changing rapidly, response from the Federal, State and Local governments are also moving quickly. On March 16, 2020 the Santa Clara County Health Officer issued an Order directing all individuals living in the County to shelter at their place of residence except to provide or receive certain essential services and other exceptions (Attachment 1).
Sunnyvale Community Services is the largest not for profit agency in Sunnyvale that works directly with the Sunnyvale community providing food and economic assistance community members in need. On Sunday, March 15, Council and Staff received an update from Sunnyvale Community Services (SCS) regarding the demand for their services during this COVID-19 pandemic. The update included a request for financial assistance and a request that the City suspend utility service interruptions for up to 60 days.
EXISTING POLICY
Proclamation of a Local Emergency by the City of Sunnyvale City Manager/Emergency Services Director Regarding COVID-19, issued on March 12, 2020 (Attachment 2).
Council Fiscal Policy 7.1 E1: General Fund Reserve Policies, E.1.1 Contingency Reserves states: The General Fund Contingency Reserve will be maintained at 15% of operations costs in year one of the long-term plan, with annual increases based on projected increases in the Consumer Price Index. This reserve will only be utilized for non-fiscal emergencies or disasters as determined by Council.
Sunnyvale Municipal Code Chapter 12.50 - Procedures for Processing Delinquent Utility Accounts covers the conditions and procedures for service interruption.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15061 (b) (3) as the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
DISCUSSION
SCS has requested a grant of $250,000 to provide emergency rent, utility bill, food or other related support assistance due to loss of income or from medical expenses connected to the pandemic. SCS is forecasting up to an additional 100 families may need one-time assistance, averaging $2,500 per family through the month of July. Upon review, staff is recommending that a grant of $250,000 be provided from the General Fund Contingency Reserve.
The City issues a combined water, sewer, and garbage bill to virtually all Sunnyvale residents and businesses (with the exception of about 1,100 water customers who are serviced by California Water Service Company). Each utility customer receives a regular bill for service. Utility customers with active water accounts receive a reminder notice, and then a final demand notice notifying them that failure to pay may result in water service interruption. Because the discontinuation of sewer service is both more difficult and would have an immediate and direct impact on the health and safety of the neighboring properties, the City does not discontinue this service due to non-payment. Therefore, active utility customers without water service receive the same notifications until the final written demand that failure to pay will result in collection action being initiated. Utility customers with closed accounts receive a final bill followed by a final demand letter notifying the customer that failure to pay will result in a collection action being initiated.
The City has a small number of service interruptions weekly, between 3 and 20 dependent number of customers that are delinquent. Delinquency fees cover the cost of turning off the water service and noticing prior to interruption. A temporary suspension of service interruption can be done immediately with minimal fiscal impact to each respective utility. Staff will continue to work with customers to attempt to collect payment.
FISCAL IMPACT
Staff is recommending funding the Emergency Assistance Agreement with funds from the General Fund, Contingency Reserve. Council Fiscal Policy authorizes the use of these funds for “non-fiscal emergencies.” As this is a one-time funding source, and Council Policy calls for it to be 15% of operations, it will need to be replenished as soon as practical.
Budget Modification No. 25 has been prepared to appropriate Contingency Reserve funds in the amount of $250,000 to fund the grant.
Budget Modification No. 25
FY 2019/20
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|
Current |
Increase/ (Decrease) |
Revised |
|
General Fund |
|
|
|
|
Expenditures |
|
|
|
|
New Project: Sunnyvale Community Services Emergency Assistance Grant |
$0 |
$250,000 |
$250,000 |
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|
|
|
|
Reserves |
|
|
|
|
Contingency Reserve |
$25,608,701 |
($250,000) |
$25,358,701 |
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website. The typical noticing locations: The Sunnyvale Senior Center and Community Center are closed in response to the COVID-19 pandemic and are thus not available for public noticing.
ALTERNATIVES
1. Authorize the City Manager to Negotiate and Execute an Emergency Assistance Agreement with Sunnyvale Community Services Related to the Santa Clara County Health Officer’s Shelter at Place of Residence Order, Issued on March 16, 2020 and Approve Budget Modification No. XX in the amount of $250,000.
2. Authorize the City Manager to Suspend Interruption of Water Service for a 60-day period and to waive late payment penalties for all water customers.
3. Alternatives 1 and 2 with modifications.
4. Take other action as decided by City Council.
STAFF RECOMMENDATION
Recommendation
Alternatives 1 and 2: 1. Authorize the City Manager to Negotiate and Execute an Emergency Assistance Agreement with Sunnyvale Community Services Related to the Santa Clara County Health Officer’s Shelter at Place of Residence Order, Issued on March 16, 2020 and Approve Budget Modification No. 25 in the amount of $250,000.
2. Authorize the City Manager to Suspend Interruption of Water Service for a 60-day period and to waive late payment penalties for all water customers.
Staff
Prepared and Reviewed by: Tim Kirby, Finance Director
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Santa Clara County Health Officer Order Issued March 16, 2020
2. Proclamation of a Local Emergency by the City of Sunnyvale City Manager/
Emergency Services Director Regarding COVID-19 (Issued March 12, 2020)