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HomeMy WebLinkAbout2020-05-12 - AGENDA REPORTS - DISCUSSION OF RECENTLY AMENDED STATE AND LACO ORDE (2)Agenda Item: 6 DATE: May 12, 2020 SUBJECT: DISCUSSION OF RECENTLY AMENDED STATE AND LOS ANGELES COUNTY ORDERS RELATED TO THE COVID-19 CRISIS DEPARTMENT: City Manager's Office PRESENTER: Kenneth W. Striplin RECOMMENDED ACTION City Council review and discuss the recently amended State and County of Los Angeles (County) phased plans and provide any necessary direction to staff. BACKGROUND On April 28, 2020, Governor Newsom announced a four -phase plan to reopen local economies and on May 4, 2020, the Governor issued Executive Order N-60-20 directing the State Public Health Officer to establish criteria and procedures to allow for the opportunity for regional variations to public health measures that may depart from the statewide directives. On March 19, 2020, the County executed the "Safer at Home" order to help lower the rate of the COVID-19 virus and to prevent hospitals from reaching capacity to serve patients. On Friday, April 10, 2020, the order was extended through May 15, 2020. The County Board of Supervisors approved a motion on April 28, 2020, to direct the County Chief Executive Office, in collaboration with the County Office of Emergency Management, to develop a plan to engage the business community and labor partners in plans to relax restrictions of the "Safer at Home" order. On May 6, 2020, the Department of Public Health released the "Roadmap to Recovery" plan, which initiate a phased re -opening of the economy beginning on May 8, 2020. CO VID-19 Cases According to data published on May 3, 2020, by the County Department of Public Health, the City of Santa Clarita (City) had only 402 cases. Factoring in the population of Santa Clarita— the third most populous community in the County with 225,000 residents equates to .18 Page 1 Packet Pg. 68 percent of the City's population having been infected. The number of cases in the City represents 1.6 percent of total cases in the County (25,662). Furthermore, over the past two weeks (April 20, 2020 — May 3, 2020), both the County and the City have experienced a similar downward trend in the number of daily cases, with Santa Clarita reaching a near low of five cases on April 30, 2020. Economic Impact The local economy in Santa Clarita has experienced a sharp decline since the initial closure resulting in thousands of businesses closing and significant job loss. During the "Safer at Home" order, only essential businesses have been able to remain open, which has significantly impacted the economy across the County. Most cities rely heavily on Sales Tax, Property Tax, and Transit Occupancy Tax as stable revenue sources to provide critical programs and services to residents. Consequently, the City is expected to experience double- digit decreases in Sales Tax and Transit Occupancy Tax in the current fiscal year with these impacts continuing into Fiscal Year 2020/21. Sales Tax currently represents 3 5 percent of the City's General Fund. A study published by Wallethub last week ranked Santa Clarita as the 17th city in the nation (third in California) with the biggest growth in unemployment due to COVID-19. Therefore, it is recommended that the City Council review and discuss the recently amended State and County phased plans and provide any necessary direction to staff. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT None by this action. Page 2 Packet Pg. 69