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CITY MANAGER’S REPORT March 31, 2020 COVID-19 PANDEMC UPDATE During the past few weeks, the City has been taking strong action to slow the spread of COVID-19 and implement new policies and directives from federal, state, and local authorities. We continue to provide frequent updates to those signed up for email notifications and we have seen 108 additional sign ups since our first outreach on March 17th. With such frequent changes over that past two weeks here is a timeline of actions and outreach that has been completed to date of this report: March 15th – “Governor Bullock Directs the Closure of Public K-12 Schools for Two Weeks; Strongly Recommends Social Distancing Measures to Slow the Spread of COVID-19.” Marth 15th – City Administrative Policies for employees issued covering Travel Restrictions, Telecommuting/Remote work, and accrued leave use during school closures due to COVID-19. March 16th – Emergency Ordinance adopted by City Council cancelling all non-essential meetings, waiving resort tax late fees, waiving late fees and shut-offs for utilities, closing public restrooms, approving two weeks of paid emergency sick leave for employees who are directed by the Flathead City- County Health Department or a licensed physician to be isolated or quarantined due to COVID-19, and authorizing City Hall to be closed to the public. March 17th – Letters to residents and businesses from the City Manager and a letter to the community from Mayor Muhlfeld were emailed to the City’s notification list and posted on the City’s website. March 17th – Park Board closed park facilities, restrooms, and playgrounds. March 18th – City Hall officially closed to the public through March 27h. March 18th – Letter to residents regarding certain park closures emailed to the City’s notification list and posted on the City’s website. March 18th – Community update video series started with an update from Mayor Muhlfeld. March 18th – City Administrative Policy issued for emergency paid sick leave adopted by City Council. March 18th – Families First Coronavirus Response Act (FFCRA) became law and required updates to the Emergency Paid Sick Leave Policy. FFCRA also expanded FMLA benefits to employees who cannot work due to having children out of school or daycare due to COVID-19 and provides for 2/3 of the rate of pay for the 10 weeks after the two unpaid weeks. March 19th – Declaration of a State of Emergency by Mayor Muhlfeld. March 19th – Flathead City-County Health Officer ordered closure of restaurants, bars, gyms, casinos, cinemas, etc. through March 30th. March 19th – City assisted Flathead County by sending a request to hotels/motels meeting specific criteria to respond to a survey for potential identification as overflow sites if the need arises. March 20th – “Governor Bullock Announces Closure of Dine-In Food Service and Alcoholic Beverage Businesses, and Other Activities that Pose Enhanced Risks to Curtail Spread of COVID-19.” ---PAGE BREAK--- March 22nd – Community update video from City Manager. March 23rd – City Administrative Policies issued to align previously issued Emergency Paid Sick Leave Policy with new FFCRA and to expand FMLA coverage. March 24th – Governor extended school closures and mandates social distancing. March 24th – Community update video from Mayor Muhlfeld. March 24th – City Hall closure to the public extended to April 10th. March 25th – Community update with Whitefish Community Foundation highlighting available resources. March 26th – Governor Bullock issued the Stay-at-Home Directive through April 10th. March 26th – Flathead City-County Health Officer ordered additional closures for salons, body art establishments, and massage services through April 10th. March 26th – Community update video from City Manager. March 27th – All park facilities are closed with the exception of open space parks. Signs were placed at all parks regarding closures. Signs were also placed on trash receptacles requesting people to “pack in, pack out” to lessen the risk to employees and the frequency needed to haul trash while the City is operating essential services only. March 27th – Community tourism update from Whitefish Convention and Visitors Bureau. March 27th – Glacier National Park closed to all visitors until further notice. State and Federal public lands started closures of campsites and restrictions for day-use only. March 29th – Community update from Mayor Muhlfeld. March 30th – City began operating at essential service levels to follow the Governor’s Stay-at-Home Directive. Most employees in City Hall are working remotely unless their position requires duties to be completed in the office. Public Works Department crews operating out of the Water Treatment Plant, Wastewater Treatment Plant, and the Public Works Shop have been reduced by about 50% and are alternating paid days off under the emergency sick leave. Building inspectors continue to operate as normal and will adjust with demand. Parks and Recreation staff operating out of the Parks Shop are primarily on paid leave under the emergency paid sick leave through April 10th with some minor remote work and garbage service as needed. The Library is closed and those with remote work are doing so. Police, Court, and Fire are operating with normal staffing levels and taking extra precautions for safety. March 30th – Governor Bullock issued directive for mandatory quarantine for those traveling into Montana from out of State. Montana National Guard will assist in checking temperatures at airports and rail stations. March 30th/31st – Letter emailed and mailed to all licensed short-term rental and lodging properties in Whitefish requesting the businesses to voluntarily refrain from booking stays for visitors traveling for non-essential purposes through April 30th as supported by the new federal guidelines. March 31st – Governor Bullock’s new directive temporarily stops evictions, foreclosures, and cancellations of utilities. Late fees and penalties are also prohibited through April 10th. ---PAGE BREAK--- While we are working hard to help slow the spread of COVID-19, there is also another looming issue. Our local businesses are seeing extraordinary financial impacts from the numerous closures. While the City is prepared to weather another recession, these immediate impacts will prove to be challenging. There are three main areas we are monitoring right now including Resort Tax, Parks and Recreation Program Revenues, and Water and Sewer Charges for Services. Resort Tax collections are expected to decrease during April and May when businesses report for March and April. If all businesses were to only report ½ of typical March revenue and ¼ of April revenue we can expect a shortage of about $265,000. This I believe is a conservative estimate based on certain businesses still operating. However, if the closures extend into the peak months, the impacts will be much greater. Resort Tax does not fund any salaries and we will have adequate funds to complete State Park Road. The next street priority project may be delayed helping cover any shortages in revenue. Currently we are meeting our bond requirements for the Haskill Basin Conservation Easement debt service, but this could be an issue with extended losses. The Water Fund would be required to make up any shortage for debt payments and we do have adequate funds to do so. With the Parks & Recreation Department closing the before and after school program, cancelling certain adult programs, and delaying the opening of City Beach, we will see a decrease in revenues. Most of the employees that operate these programs are seasonal employees and have either been laid off temporarily or their start dates have been delayed. Depending on the duration of these closures, certain spending may need to be restricted to ensure staffing costs are covered. While we are not writing-off amounts owed for water and sewer service, we are not turning off service or charging late fees. This provides for a delay in payment, which we do have adequate cash reserves to cover temporarily. Depending on the severity of the economic impacts and delay in receiving payments, we may need to consider bonding more for the Water Treatment Plant Expansion Project to continue having adequate cash reserves available. Overall, the revenue losses we hope will be temporary and not impact the City to the extremes our local businesses are experiencing. The Tax Increment District sunsetting resulting in the General Fund revenues increasing in FY21 will help us significantly too. However, we also do not know the potential costs needed to respond to this pandemic. We could very well see increased overtime, additional costs to provide housing for employees who are quarantined due to exposure while on duty, increased supply needs for personal protective equipment, and additional costs to support remote work and City Council meetings. We are tracking all expenses related to our response so that we can request any funding that may come available including FEMA. Most costs will require the City-County Health Department’s approval since they are the designated Incident Command Team for our area’s response to this pandemic. CONSTRUCTION PROJECT UPDATES FROM PUBLIC WORKS DIRECTOR WORKMAN Wastewater Plant: The biggest issue right now is getting the plant out of the ground. It was discovered last week during foundation drilling that there is considerably more clay above the stable sand layer than expected. Boreholes that were conducted during design showed the sand at 40’-50’, however it appears the sand dives down and can be found as deep as 80’ below ground. The contractor is installing the “rigid inclusion piers” in the areas where their equipment can reach the sand, however a deeper foundation system will need to be designed for a portion of the project. Work to date includes the following: Biosolids Basin Mixing Discharge Pipe Support Slabs were formed. Rebar for these forms will be delivered next week. The Treated Water Outfall Line and manholes were tested and accepted. Embankment on the Biosolids Basin and Berm was completed for now. The 3” section of the Non-Potable Water was installed to Station 11+50. LHC plans to directionally drill the ---PAGE BREAK--- remaining portion. Fiber optic conduit was installed from the top of the hill down to the Existing Screening Building. Test Piers were tested with acceptable results and Keller has continued with production pier installation bringing their total completed to 155. Swank will continue to prep concrete forms in the coming weeks and continue to provide support for Keller during the installation of Rigid Inclusions. The Biosolids Basin Pads will be poured, and Swank will begin to form the Side stream Lift Station. LHC plans to install the new diffuser in the river in early April. Water Plant: The project is currently on track with regards to both budget and schedule. Plans were submitted to DEQ on March 5, 2020 and Morrison-Maierle will incorporate DEQ review comments along with final City of Whitefish review comments to finalize construction documents for bidding and construction. Bidding is currently scheduled for May or June and construction is anticipated to begin in September 2020. Depot Park Phase III – The contract has been executed by all parties and a preconstruction meeting has been scheduled for April 13th. Knife River is expected to begin work later that week and the project will be completed by July 1st. State Park Phase II – The contract has been executed by all parties and a preconstruction meeting will be scheduled with LHC soon. In lieu of a final public meeting, a detailed newsletter will be sent to residents and property owners letting them know what to expect during construction. The project will be completed in the fall of 2020. REMINDERS AND OTHER INFORMATION City Hall is closed to the public through April 10th. It is likely that this closure will be extended through April 30th. We continue to offer most of our services and will continue to have someone available to help answer your questions or direct your call through our main line at [PHONE REDACTED], Monday thru Friday, 8 a.m. to 5 p.m., excluding holidays. City Hall will be closed on April 10th for Good Friday, a City holiday. NEXT COUNCIL MEETING The next City Council meeting will be held remotely on Monday, April 20th. There will be no work sessions through the month of April. If these conditions continue past April 30th, we may consider holding work sessions remotely too. Respectfully submitted, Dana M. Smith, CPA City Manager