TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary or desirable to enter into leases with public or private parties for terms not to exceed six months, with an option for one six-month extension at the sole discretion of the City Manager, to lease or occupy real property in response to the proclaimed emergency due to the COVID-19 pandemic; and
Adopt resolution authorizing City Manager, or designee, to execute all necessary documents, including subcontracts and any subsequent amendments, to apply for, accept, and expend grant funding for financial assistance to respond to the proclaimed emergency due to the COVID-19 pandemic. (Citywide)
DISCUSSION
On March 4, 2020, the City of Long Beach (City) declared local health and city emergencies to strengthen the City’s preparedness and ability to respond to COVID-19, commonly known as novel coronavirus. City Council ratified the declarations on March 10, 2020. As part of the overall assessment of potential City needs to respond to the serious and imminent threat of an outbreak of COVID-19, it has been determined that there may be a need to enter into leases for the use of public or private property not owned or controlled by the City, both vacant lots and buildings, for emergency responses such as additional homeless shelters, staging areas, and temporary public safety facilities.
The current process for City leasing of private property is somewhat protracted and, on average, requires three to four months of advance preparation and, ultimately, City Council approval. This upfront timing restriction does not align with the City’s need to proactively respond to the COVID-19 crisis. To be more responsive and to better coordinate with emergency response partners, it is recommended that the City Manager be authorized to enter short-term leases, at rental rates reflective of the duration and use during the City’s occupancy. The leases would be limited to an initial six-month term with an option for one additional six-month term, at the discretion of the City Manager. All leases executed under the authority granted by this City Council action will be presented to the City Council at the next practicable opportunity for receive and file.
In addition, for the City to take advantage of federal and state grants being made available in response to the COVID-19 pandemic, it may become necessary for the City to apply for and enter into grant agreements in an expedited manner. To provide staff with greater ability to secure grant funds as they become available, it is recommended that the City Council adopt a Resolution authorizing the City Manager to execute documents applying for and expending financial assistance in connection with the COVID-19 pandemic.
This authorization allows for the City Manager, or designee, to apply for, accept, and expend funding for COVID-19-related grants with and without a match requirement. The City Manager’s Office and the Financial Management Department will utilize an internal process to track and manage COVID-19 related grant funding. All grant agreements executed under this authority granted by the City Council action will be presented to the City Council at the next practicable opportunity for receive and file.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on March 31, 2020 and by Budget Management Officer Rhutu Amin Gharib on April 5, 2020.
STATEMENT OF URGENCY
City Council action is requested on April 14, 2020, to provide the City Manager with the ability to respond expeditiously to combat the COVID-19 pandemic.
TIMING CONSIDERATIONS
City Council action is requested on April 14, 2020.
FISCAL IMPACT
The fiscal impact of executing leases and securing grants on an expedited timeframe to respond to the declared emergencies due to the COVID-19 pandemic are, at this time, unknown. With leases, staff would work with landlords to ensure that rental rates are, to the extent possible, reasonable given the COVID-19 environment and reflective of the duration and use of the City’s occupancy. Although there is no guarantee that funds to offset leases will be available, every effort will be made to leverage external funding sources and/or seek reimbursement from State or federal funding sources for property leased in support of the response to the declared health COVID-19 emergency. Staff will ensure the grants applied for and accepted specifically address the COVID-19 efforts and provide a benefit to the emergency effort. For both lease and grant agreements, staff will identify and track the fiscal impacts of each action and provide a comprehensive report to the City Council at the next practicable opportunity. This recommendation may redirect staff from other responsibilities and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
THOMAS B. MODICA
ACTING CITY MANAGER