To: Board of Supervisors of Sonoma County
Department or Agency Name(s): Department of Health Services
Staff Name and Phone Number: Andrea Dos Santos, 565-6624; Christine Sosko, 565-6521
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
COVID-19 Emergency Response Update and Environmental Health COVID Pandemic Offset to Permit Fees
End
Recommended Action:
Recommended action
A) Receive a staff update on current COVID-19 response and enhanced COVID-19 strategy efforts and vaccination coordination.
B) Approve the recommended Environmental Health COVID pandemic offset to permit fees and administration costs, totaling $2,780,969 for fiscal year 2020-2021.
C) Adopt a resolution amending the FY 2020-21 Department of Health Services and County Administrator’s Budget in the amount of $2,780,969; financed from the county’s General Fund Infrastructure Sinking balance.
D) Adopt a resolution implementing local aid strategies to provide additional financial relief to local restaurants, body art, and recreational health establishments that suffered financial hardship during the pandemic.
(4/5th Vote Required)
end
Executive Summary:
This item provides the Board with an update of the Department’s COVID-19 response efforts and enhanced COVID-19 strategies and vaccination coordination. A COVID-19 Update PowerPoint will be presented to the Board.
On January 26, 2021, during the discussion on COVID-19 impacts to the local businesses and economy, the Board of Supervisors directed the Department of Health Services staff to return with a proposal for local strategies to assist businesses permitted through Environmental Health totaling up to $2.8 million financed from the county’s General Fund Infrastructure Sinking balance. This report provides the details, allocation amounts and community served by these proposed aid options.
Discussion:
Environmental Health COVID Pandemic Offset to Permit Fees is a continuation of the January 26, 2021 COVID-19 impact discussions, where the Department of Health Services was directed to return to the Board with local aid strategies, totaling up to $2.8 million, for businesses permitted through Environmental Health.
Many of the businesses permitted through Environmental Health have been severely impacted by the pandemic and limited in their operations by the local and state health orders. Environmental Health services span across many programs with more than 9,500 units of service and $6.5 million in revenue annually.
Department of Health Services, Environmental Health has extended timelines for permit payments, waived late payment penalties, placed permits into a hold status when not in operation and offered payment plans for operators to benefit facilities during the COVID-19 pandemic.
In evaluating the Environmental Health programs and the limitations placed upon those businesses due to the COVID-19 pandemic, restaurants, body art, and pools, were identified as the facilities most severely impacted with required closures or significant modifications to operations during the current year.
Below is the criteria used to determine which permitted facilities would be included as eligible for an offset:
• Facility required to close or to significantly modify operations (restricted or elimination of uses) through a local or State health order since March 2020; and
• Facility permit is renewed annually and is not issued on an as needed basis.
I. Food Program
The food program is Environmental Health’s largest program with more than 5,000 permit and inspection services per year bringing in a budgeted revenue of $4,375,000 for FY 20/21. Food facility permits include community events, farmer’s markets, caterers, tasting rooms, bed & breakfasts, hotels, schools, markets, restaurants and mobile facilities. Permits for permanent facilities cover a period of one year from the time they open their facility and are automatically renewed on the facilities’ anniversary date. Permits for temporary events, community events, farmer’s markets and catering are not renewed annually, which allows the permit holder to determine the permit term based upon the events they plan to participate in.
Restaurants were both directly impacted through the health orders and indirectly with our community suffering a large loss in tourism and many choosing to stay home to eat. For purposes of this item, the definition of a restaurant is a retail food establishment that prepares, serves and vends food directly to the customer, as stated in California Health and Safety Code, section 114379.10 (c). For the 1,610 restaurants meeting the determination criteria we have proposed the options outlined in the chart below:
|
Option # |
Proposed Options |
# Permits |
Fiscal Impact |
Advantages |
|
1 |
Full Offset |
1610 |
$2,408,917 |
Greatest Aid |
|
2 |
Reduced Capacity Offset |
1610 |
$1,831,158 |
Aligns w/closure |
Option 1 offsets 100% of the permit fees for all business effected by the health orders from July 1, 2020 - June 30, 2021.
Option 2 offsets fees for the percentage of days a restaurant could operate at a reduced capacity throughout the pandemic. The health orders put restrictions on restaurants at three different levels of operations allowing takeout only, takeout and outdoor dining, and takeout, outdoor dining and indoor at 25% capacity. This option assumes that business were operating at 15% for takeout only for 109 days, 25% for takeout/outdoor for 227 days, and 40% at takeout/outdoor/indoor 25% for 42 days. For example, while businesses were operating at 15% capacity during the takeout only period, 85% of the permit fees would be offset.
The overall factors were applied to 378 days from March 18, 2020 - March 31, 2021 and determined the percentage of days restaurants were impacted by Health Orders is 76% of the time equating to a $1.83 million offset.
II. Body Art
The body art program has 442 permits and services totaling an estimated annual revenue of $108,000. Body art facility permits are issued at the time of the business opening and renewed annually on the facility’s anniversary date. Body art facilities were not able to operate for 8 months (67%) under state and local health orders from March 18, 2020 - October 20, 2020 and from December 12, 2020 through January 25, 2021. The chart below reflects options for body artist and facilities meeting the determination criteria:
|
Option # |
Description |
# Permits |
Fiscal Impact |
Advantages |
|
1 |
Full Offset |
282 |
$78,340 |
Greatest Aid |
|
2 |
Reduced Capacity Offset |
282 |
$52,267 |
Aligns w/closure |
Option 1 offsets the fees for businesses that were affected by the Health Orders.
Option 2 offsets the fees for businesses for the amount of the year (67%) that they were not able to operate.
III. Recreational Health
The recreational health program has 742 pools, spas, wading pools and interactive water feature permits with an annual revenue of $485,265. In 2020, all pools were closed on March 18, 2020 with some facilities allowed to reopen with restrictions/modifications on June 5, 2020. Indoor pools and all spas have been restricted to medical use only during the local and state health orders while other pools have suffered losses with capacity and travel restrictions. Environmental Health is bringing forward the following options for a pandemic offset plan:
|
Option # |
Description |
# Permits |
Fiscal Impact |
Advantages |
|
1 |
Full Offset |
742 |
$485,268 |
Greatest Aid |
|
2 |
Reduced Capacity Offset |
742 |
$281,185 |
Aligns w/closure |
Option 1 offsets 100% of the permit fees for all pools and spas.
Option 2 offsets all indoor pools and spas for the year. Offsets outdoor pools for 79 days that the businesses were required to close and for 25% of the fees for the remaining year that the operations were reduced.
IV. Recommendations
The Department recommends the following pandemic offset options to accounts in good standing, totaling $2,742,369 for implementation to be effective retroactively beginning July 1, 2020 plus an additional $38,600 for administration costs needed to execute reimbursements to business for a total of $2,780,969:
Food Facilities ($2,408,917)
• Option # 1: Offset permit fees for all restaurants in FY 20/21 - $2,408,917
Body Artists and Facilities ($52,267)
• Option # 2: Offset permit fees for 8 months in FY 20/21 - $52,267. This recommendation is coupled with a previous action taken in September of 2020 when all body art permits were extended by Environmental Health for 6 months in response to the closure of body art facilities through the state orders. The permit extensions benefitted 282 artists and facilities and cost $39,170; which has been absorbed within Public Health overall programming.
Recreational Health ($281,185)
• Option # 2: Offset permit fees for all pools/spas in FY 20/21 for time of closure - $281,185. This recommendation is coupled with a previous action taken when pool permits were issued one month later, in June of 2020 rather than May, due to mandatory closure from the local and state health orders. The extensions of permit terms was provided for 742 facilities at a cost of $40,439; which has been absorbed within Public Health overall programming.
Administration costs to issue checks for the offset to businesses would entail hiring one extra help Senior Account Clerks for a period of 6 months at a cost of $34,000 and for current staffing costs estimated at 76 hours for $4,600 for a total estimated cost of $38,600.
If the Board so chose for a full offset the fees of Body Art and Recreational Health the additional cost would be $230,156 for a total cost of $3,011,125. This is $211,125 more than the Board allocated during the January 26th meeting. Additional funding of $211,125 will need to be identified and the Environmental Health Fund Balance could be a source.
According to the US Department of Treasury Federal Register volume 86 number 10, the proposed Environmental Health Pandemic Offset is an eligible expense under the Coronavirus Aid, Relief, and Economic Security Act (CARES). The entire CARES Act funding the County has received was previously allocated by your Board towards responding and addressing the effects of the COVID-19 Pandemic. If there are cost savings in 2020-21 realized with the programs associated with the CARES Act then the department can return to the Board to reimburse the Infrastructure Sinking Fund for the Environmental Health Pandemic Offset.
The Economic Development Board and Health Services outreached into the community, organizations, and business groups and met with City partners to inform the public of the pandemic offset. On May 6th, messaging was sent through email and social media channels requesting feedback on the proposed offset program. Feedback has been received in a dedicated Environmental Health email at EconRecovery@sonoma-county.org.
The outreach campaign targeted the following groups/lists with the communication:
• Trade Associations
o Sonoma County Hospitality Association
o Sonoma County Tourism
o Naturally North Bay
• Economic Development Partners
o Cities
o Chambers
• EDB Email Lists
o General List
o Sonoma County Restaurant Week
Feedback thus far received has been businesses inquiring about eligibility. The deadline to provide feedback is Friday, May 21, 2021. During the May 25 Board Meeting, the department will update the Board on any additional feedback received from the public.
Prior Board Actions:
April 20, 2021; COVID 19 Update.
April 6, 2021; COVID 19 Update and request for resources.
March 16, 2021; COVID 19 Update
March 2, 2021; COVID 19 Update
February 23, 2021; COVID 19 Update ,enhanced strategy efforts, and vaccination coordination.
February 2, 2021; COVID-19 Vaccination Response Plan
January 26, 2021; COVID-19 Update including impacts to the local businesses and economy; and direction to staff to return with a proposal for local strategies totaling up to $2.8 million
January 5, 2021; COVID 19 Update
January 5, 2021; A) H.R. 133 - Consolidated Appropriations Act, 2021 and protections provided with the Federal, State, local Eviction and Sick Leave policies; B) authorization to execute the continued COVID-19 Response; C) direction to staff to identify additional budgetary adjustments necessary to expand Department of Health COVID-19 Response Plan through 6/30/2021; D) direction to staff regarding the Local Aid Strategies.
Fiscal Summary
|
Expenditures |
FY 20-21 Adopted |
FY 21-22 Projected |
FY 22-23 Projected |
|
Budgeted Expenses |
|
|
|
|
Additional Appropriation Requested |
2,780,969 |
|
|
|
Total Expenditures |
2,780,969 |
0 |
0 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
2,780,969 |
|
|
|
Contingencies |
|
|
|
|
Total Sources |
2,780,969 |
0 |
0 |
Narrative Explanation of Fiscal Impacts:
The department is requesting additional appropriations of $2,780,969 funded via a transfer from County Administrator Office’s Infrastructure Sinking Fund. Due to the timing of this Board Item, some appropriations may need to roll into FY21-22 to complete processing of offset. The appropriations will be re-budgeted during 1st Quarter Consolidated Budget Adjustments.
|
Staffing Impacts: |
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|
Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
|
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|
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Attachment 1 - Budget Resolution
Attachment 2 - Resolution Implementing Local Aid Strategies
Related Items “On File” with the Clerk of the Board:
None