HomeMy WebLinkAbout24749RESOLUTION NO. 24749
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, UNANIMOUSLY DECLARING
A FISCAL EMERGENCY RELATED TO THE INCREASING
SPREAD OF NOVEL CORONAVIRUS (COVID-19).
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS
FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. On March 4, 2020, Governor Gavin Newsom declared a State of Emergency due to
the number of confirmed cases of the novel coronavirus ("COVID-19") in the state of
California.
B. On March 14, 2020, the City Manager/Director of Emergency Services declared the
existence of a local emergency within the City of Palm Springs due to the threat
presented by the continuing spread of COVID-19 in the community.
C. On March 17, 2020, pursuant to the declaration of a local emergency, the City
Manager/Director of Emergency Services issued a Shelter -in -Place Order to ensure
that persons within the City not leave their homes, except for essential activities, as
defined in the Order.
D. On March 19, 2020, the City Council adopted Resolution No. 24738 ratifying and
confirming the Declaration of the Existence of a Local Emergency relating to COVID-
19 in the City of Palm Springs, as issued by the City Manager/Director of Emergency
Services on March 14, 2020, and ratified the City's Shelter -in -Place Order.
E. On March 19, 2020, Governor Newsom issued Executive Order N-33-20 ordering all
individuals living in the State of California to stay home or at their place of residence
except as needed to maintain continuity of operations of the federal critical
infrastructure sectors, effective March 19, 2020, and in effect indefinitely until
rescinded by the Governor.
F. Due to the threat presented by the COVID-19 pandemic, and the State of Emergency
declared by Governor Newsom, the Local Emergency and Shelter -in -Place Order
ratified by this City Council, and the Executive Order issued by Governor Newsom, all
Non -Essential Businesses in the City of Palm Springs closed on or about March 17,
2020, and have remained closed.
G. Non -Essential Businesses include the City's tourism industry stakeholders, including
shops, stores, restaurants, small hotels, large hotels, and vacation rental properties,
that generate Transient Occupancy Tax ("TOT"), and sales and use taxes, which
generates approximately 50% of the City's General Fund revenue that is required to
sustain the City's general operations.
Resolution No. 24749
Page 2
H. Governor Newsom has announced a framework for reopening the state's economy,
but has noted the decision will be based on six factors, including the ability to widely
test and trace people who have been exposed to the coronavirus, and the ability to
increase the state's public health infrastructure to address COVID-19; however, the
Governor has not indicated any specific time frame for such reopening, and has stated
that sporting events, concerts and music festivals will likely not be held this summer.
On the basis of Governor Newsom's statements on re -opening the state's economy,
and the timeframe for widespread availability of a COVID-19 vaccine, continuing
disruption to the City's tourism industry and the associated reduction in General Fund
revenue is anticipated to extend through June 2021.
J. Financial analysis of the economic impacts associated with COVID-19 is difficult to
predict at this point; however, a mid -range on staffs estimate identifies a potential loss
of $26 million for the 2019/20 Fiscal Year budget, and a continuing loss of $21.9 million
in the 2020/21 Fiscal Year budget.
K. The City's General Fund reserves are insufficient to fully absorb the anticipated loss
in revenue that will occur from the COVID-19 pandemic.
L. The City Council hereby finds that the conditions described in the foregoing recitals
related to COVID-19 warrant and necessitate the City Council's unanimous
proclamation and declaration of a "Fiscal Emergency" in the City of Palm Springs.
SECTION 2. Pursuant to, and in response to, the conditions identified in Section 1 of this
Resolution, the City Council hereby unanimously finds and declares the existence of a
Fiscal Emergency directly related to the continuing threat and existence of COVID-19 in
the community.
SECTION 3. The City Council hereby directs the City Manager to investigate and
recommend further actions to mitigate the fiscal impact to the City's 2019/20 and 2020/21
Fiscal Year budgets, including measures relating to personnel costs, operations,
reduction in service levels, or other measures deemed necessary and reasonable to
minimize the accelerated and significant reduction to the City's General Fund reserves,
and submit said recommendations to the City Council for approval.
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Resolution No. 24749
Page 3
SECTION 4. Based upon the findings made herein and other substantial information
available as part of the public record, and the City Council's unanimous declaration of a
Fiscal Emergency related to COVID-19, the City Council reserves the right to utilize such
measures available to it, pursuant to, and in accordance with, Article XIII C of the
California Constitution.
ADOPTED THIS 23RD DAY OF APRIL, 2020.
ATTEST:
t J
HONY J ME
CITY CLER
DAVID H. READY
CITY MANAGER
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE) ss.
CITY OF PALM SPRINGS)
I, Anthony J. Mejia, MMC, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 24749 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on April 23, 2020, by the following
vote:
AYES: Councilmembers Garner, Middleton, Woods, Mayor Pro Tern Holstege, and
Mayor Kors
NOES: None
ABSENT: None
ABSTAIN: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Springs, California, this 2v4 day of 20 .
THO I
CITY CLE