MOTION-- Over the course of the COVID-19 pandemic, the city has spent extraordinary sums of money
that were not considered during the budget process for the 2019-20 fiscal year and for
some expenses that may or may not be fully reimbursable by the Federal Emergency
Management Agency (FEMA) or other sources. Most expenses that qualify for FEMA
reimbursement are reimbursable up to 75% of the expense. Though most of the funding for
the immediate COVID-19 response was provided in the form of a loan from the LADBS
Permit Enterprise Fund, there were also significant sums of money drawn from the City's
Reserve Fund, particularly in the waning weeks of FY 2019-20.
With the passage of the Coronavirus Aid, Relief and Economic Security (CARES) Act, the
federal government has made a source of funds available that can be used to reimburse the
city for its expenses which are not eligible under the emergency declaration adopted by
FEMA, or for the 25% portion of the costs that are currently the city's responsibility.
WE THEREFORE MOVE that the Council INSTRUCT the CAO to identify appropriate
reimbursements to the Reserve Fund from the COVID-19 Federal Relief Fund for COVID-19
response costs the city has incurred which are either (a) within the category of expenses
for which the city must cover 25 percent; or (b) for which the city is not eligible to be
reimbursed, in an amount sufficient to cover the non-reimbursable portion of the funds
which were drawn from the reserve Fund
WE FURTHER MOVE that the Council INSTRUCT the CAO to allocate that sum to replenish
the Reserve Fund.