I. RECOMMENDATION:
The City Manager recommends Council approve Premium Pay for essential employees as proposed and schedule public workshop to discuss additional funding priorities.
II. BACKGROUND:
To date, the City of Coalinga has received $637,387 in COVID-related funding outside of ARPA Funding.
Council approved that funding as follows: $186,343 from CV-1 for mortgage and utility assistance for Coalinga citizens (Money is still available), $314,194 from CV-2 for small business grants (Money is still available), and $136,850 from the CARES grant received from Fresno County ($18,693.47 in rental assistance for 12 applicants, $75,000 in small business grants for 23 businesses, $12,187.39 in utility assistance for 17 utility accounts, and a City recoupment of $30,969.14 to recoup expended funds).
The City did not receive $212,358 in CARES Act funding as it was withheld by the State of California in response to the City's Resolution declaring all Coalinga businesses as essential. We are told that the State allocated these funds to pay for the mobile testing unit that has been here in the City.
Initially, the City of Coalinga (City) was told we would receive $3.23 million in ARPA funds. However, after the US Department of Treasury modified the formula used to calculate ARPA payments to non-entitlement cities, the City of Coalinga will be receiving $4,109,582 in ARPA funds.
The coverage period is March 3, 2021, through December 31, 2024, meaning, this is the period in which funds must be allocated. All funds must be spent by December 31, 2026.
The following is a list of the only allowable uses of the funds:
- Support public health expenditures, by, for example, funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff;
- Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector;
- Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic;
- Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical infrastructure sectors;
- Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet.
Below is a list of local Cities who have approved, or are considering, premium pay for essential employees with ARPA funds:
City of Kingsburg Approved 5% for all employees;
City of Parlier Approved $2,500 for all employees;
City of Reedley Approved 5% for all employees;
City of Sanger Approved $13 per hour up to a cap of $3,000 for all employees;
City of Lemoore is Considering premium pay for all employees with no definitive amount set yet;
City of Mendota Approved $13 per hour up to a cap of $12,500 for all employees;
City of Avenal is Considering between $14,000 and $16,000 for all employees;
City of Corcoran Approved $25,000 for all employees.
III. DISCUSSION:
ARPA caps the premium pay allowance at $25,000 per essential employee.
The recommended premium pay is $1,000 per month per essential employee for each full month worked from June 1, 2020, through May 31, 2021. In order to be eligible, the employee must still be employed with the City as of the date the checks are made payable. This caps premium pay at $12,000 per employee.
During the period of June 2020 through May of 2021, all City staff was working on site and not working from home, with the occasional exception of an employee required to quarantine for 10 days after a positive COVID test or exposure or for short-term childcare needs.
From May 26, 2020, City Hall was open to the community by appointment and October 12, 2020, appointments were no longer required for entry.
The $1,000 per month premium pay, as recommended, averages out to $10,604.65 per employee. These payments would be paid through payroll as supplemental wages which have a total tax rate of 36% resulting in the average net amount of $6,786.98.
The total fiscal impact associated with the premium pay is $912,000 to include all City staff. Elected and appointed officials are not included pursuant to Article 2 of the City of Coalinga Municipal Code unless otherwise directed by the City Council.
Of the $912,000 total, $122,561 must be supported by written justification of how the premium pay is responsive to individuals performing essential work during the public health emergency.
If the premium pay is approved by Council as recommended, this would leave $3,197,582 to be allocated as outlined in the bullet points above under the Background portion of the staff report, which is only $32,418 less than the initial amount of ARPA funds the City was expecting to receive ($3.23 million). Staff's recommendation is to hold a public workshop for input from the community on how to allocate those funds.
The $912,000 cost in premium pay from the $4,109,582 in ARPA funds is approximately 22% of the total.
Staff does have a list of recommended projects that will be presented during the workshop.
IV. ALTERNATIVES:
1. Do not approve;
2. Approve with changes.
V. FISCAL IMPACT:
$912,000 in premium pay from the $4,109,582 ARPA funds leaving $3,197,582 remaining. | | |