Emergency Orders: Mayor Explains – Part 2

This is part two summarizing the attorney’s 51 pages of memos explaining the mayor’s emergency orders.Part one is here.

Council will consider on the 21st when they meet again.

Memo #10 – Relating to extending certain municipal licenses from June 30, 2020, until August 31, 2020. (Legistar File No. 60090)

Written by Assistant City Attorney Steve Brist, pages 26 & 27

The order:

Background:

• One of the major duties of the City Clerk is administering the municipal licensing process.
• Municipal licenses commence on July 1 of each year, and expire on June 30 of the following year.
• License applications must be filed well in advance of the June 30 expiration date in order that the applications may be reviewed by the Clerk’s staff for accuracy and completeness.
• The Order excludes alcohol beverage licenses from this license extension, because the term of those licenses is set by state law.
• Additional efforts will be made to inform the public about the license extension.
• It is expected that minimal steps will need to be taken by the Office staff in
  order to implement the extension.

Why this is necessary:

• This year the license renewal process will fall during what may be a peak time for COVID-19 concerns.
• Many licensees are not able to operate their businesses because the businesses have been closed by the governor’s order. This means that many small businesses are operating with no or reduced revenues and licenses fees may be a burden.
• The City Clerk’s staff has been reduced by COVID-19 health concerns
• Clerk’s staff has been busy administering the April 7th election. The urgency ofthe work that will done before and after the election means that election tasks must beprioritized by the staff.
• Once the Clerk’s staff has met the deadlines related to the April election, the staff will
  devote more of their efforts to license renewal and the upcoming August Primary and
  November Election.

Actions taken:

None explained

Fiscal Impact:

• This change is estimated to result in a shifting of approximately $125,000 in license
  revenues, but will not in and of itself, result in a reduction of revenues.

Konkel’s Got Questions!

1. When the election is over and people can re-assess, will that shift anything?

Memo #11 – Order No. 17: Establishing procedures to negotiate and execute
emergency leases, contracts and contract amendments during the
emergency situation.  (Legistar File # 60116)

Written by Assistant City Attorney Lara Mainella, pages 28-30

The order:

Background:

• The City has an ordinance for emergency service contracts in MGO 4.26(4)(c), and has
  certain authority for emergency public works by state law, but this does not cover real
  estate transactions, leases, or amendments to existing contracts that were initially
  authorized by the Common Council.
• Existing policy also requires numerous signatures on most contracts.

Why this is necessary:

This order streamlines some approval and signature procedures for contracts
necessitated by the emergency:

• Allowing department heads, rather than the mayor, to approve certain contracts and purchases, and sign a contract if needed.
• Removing the step for Council approval for emergency leases and space use agreements for buildings or land needed for the emergency
• Removing the step for Council approval to amend a contract previously approved by the Council, if the amendment is for the emergency. Examples: extending deadlines, changing scopes of work, changing payment terms.
• Eliminating the signature of the City Clerk and Risk Manager
• Allowing the City Attorney to approve the contract form via email.

These procedures, laid out in greater detail in Resolution No. 60116.

The resolution requires City Attorney, Finance Director, and Risk review in some cases
and requires Finance Director signature when mandated by state law (new
expenditures.)

How it will be implemented

• These emergency contract procedures are available to every department.
• Procedures are being implemented on an as-needed basis.
• Assistant City Attorneys and Finance (Purchasing) staff have been advising departments when and how to use the emergency procedures, when asked.
• To maximize the benefits of this order will require very good communication across agencies.
• Finance has requested written guidance on how to implement these procedures. The
  City Attorney’s office can work on this.
• They are reacting to specific situations as they come up, as is the nature of most emergency work.

Actions taken:

The Finance Department is tracking all emergency purchases. Some contracts that
have been made under this order:

• Private security for hotels, other sites
• Online learning options for employees teleworking
• MMSD Election Day polling MOA
• Laundry service for linen/bedding at the Warner Park shelter
• Other emergency contracts are being handled under Order 22.

Contract Amendments: As of the date of this memo, they are not aware of any contract amendments made under this Order, but believe they will be needed.

It is anticipated CDD will amend some of their purchase of service contracts to revise the scope of work in response to emergency conditions, or move money around within a contract. CDD proactively reached out to agencies about two weeks ago for information to help determine where contract changes might be appropriate. It has postponed the first quarter service reporting deadlines. CDD does not plan to pull back money from agencies, rather, may need to modify scopes of services, authorize different service delivery models to comply with social distancing and the Safer at Home order, etc., in addition to waiving or extending reporting deadlines found in existing contracts.

NOT included in this resolution: emergency purchase of goods and supplies. These
purchases would not require any emergency authority, but are being tracked by the
Finance Department.

NOT included in this resolution: contracts for emergency services already authorized by MGO 4.26(4)(c). That ordinance already authorizes department heads and the Finance Director to purchase services in any dollar amount, without competitive selection and without Common Council approval, in an emergency. It authorizes the Finance Director to sign such contracts (if a signed contract is deemed necessary.) The ordinance requries the Finance Director to report any such emergency contracts of $50,000 or more to the Council.

NOT included in this resolution: any change of rules for public works contracts, as
those procedures are dictated by state law. State law includes a narrow exception for
emergencies in Wis. Stat. 62.15(1b). Considering the urgent nature of responding to this
emergency, the City does not expect to have to commence emergency works of public
construction as a result of the pandemic. Updates will be provided if this changes.

Fiscal Impact:

From the fiscal note: This change does not have immediate impact; however, it may
result in expenditures not currently assumed in the 2020 budget. These costs will be
monitored by the Finance Director and reported to the Common Council with an budget
amendment resolution for approval.

Konkel’s Got Questions!

1. How will all these contract changes get reported to the Common Council.

2.  Why are we paying for security guards in hotels, but took so long to get staff and nurses there?

3. How will purchases get reported to the common council?  Those under and over $50,000.

4.  What’s up with that fiscal note?  Clearly hiring security, laundry services and other things cost money and have a fiscal impact.

Memo #12 – Order No. 20: Resolution Authorizing Waiving the requirement to conduct an annual RFP for the Emerging Opportunities Program under MGO 3.12(11)(c) for 2020 and reallocating the 2020 EOP funding to other contracts or programs. (Legistar File # 60124)

Written by Assistant City Attorney Lara Mainella, pages 31 & 32

The order:

Background:

• The Emerging Opportunities Program (EOP) provides local funds to community/resident groups to address emerging needs not funded through other programs and to provide financial support for nascent organizations.
• MGO 3.12(11) was recently amended to require at least one RFP for EOP funding per year.
• This year there is $150,000 designated for this fund.
• Emergency Order 20 gives CDD flexibility to delay the RFP process and/or not award funds for 2020 through the usual process.
• The 2020 RFP had just been released before the COVID situation hit, and CDD had already notified the public that the RFP process was postponed until further notice.

Why this is necessary:

• The impact of the pandemic will be widespread upon businesses, community
  organizations, their employees and the communities they serve, as well as the City’s
  ability to provide certain services. The impact will be felt by nonprofit and community
  organizations.
• The closure of schools, places of employment, childcare centers and the will likely have significant financial impact on residents who may require additional services as a result.
• This order affords CDD the flexibility to use EOP funds this year for purposes directly in
  response to community needs resulting from the coronavirus emergency.
• Additionally, if needed, the 2020 funds could be redeployed outside of the CDD as needed.

How the resolution will be implemented

CDD staff will take the time available between now and April 21 to gather information from community groups about what is already being done, to help inform how the 2020 EOP funds might be leveraged to assist during the current crisis.

Actions taken:

• The 2020 RFP has already been placed on hold.
• It was delayed in part by the recent ordinance amendment to 3.12.
• CDD sent out an email and posted on their website a message indicating the EOP funding process for 2020 is being suspended until further notice.
• CDD has not made any decisions for using EOP funds for any other purpose.
• CDD staff are reaching out to community groups to learn where the greatest need exists and to identify strategies for meeting those needs with the $150,000 in available funds.
• CDD anticipates conducting an EOP funding process, to allocate 2021 funds, in the
  fourth quarter of this year.

Fiscal Impact:

The 2020 Adopted Budget includes $150,000 for the Emerging Opportunities Program.
The funding process for allocating the 2020 awards is currently on hold.

Konkel’s Got Questions!

1.  Isn’t this money needed in the community NOW?
2. Given the other emergency powers can’t the contract and spend on their own to fill the needs of the community?
3. Why would funds be “redeployed outside of CDD” when the needs are so great for those who lost their jobs and need vital community services?  Businesses are getting tons of assistance through the federal government, state and county and all the other mayoral orders.  Wouldn’t they use this to amend current contracts as necessary to respond to immediate needs?

Memo #13 – Resolution Authorizing Increased Budget Transfer Amounts – Legistar 60126

Written by Finance Director Dave Schmiedicke, page 33

The order:

Not mentioned in the memo

Background:

• Current law (the 2020 budget resolution — RES-19-00755) authorizes the Finance Director to transfer $5,000 between major expenditure lines within departments and the Mayor to transfer $5,000 between departments.
• Transfers in excess of that amount require approval of the Council through a resolution.
• In the context of a $1 billion all-funds annual operating and capital budget, a $5,000 maximum administrative transfer is relatively modest.

Why this is necessary:

• Current transfers limits rapid response to changes in expenditure levels during this national public health emergency.
• The resolution increases the transfer amount in the budget resolution to $50,000 for the operating budget and to $250,000 for the capital budget, during the remainder of the 2020 budget year (through December 31, 2020).
• The higher threshold for capital projects reflects the often significant amounts within individual capital projects and programs (e.g., major street reconstruction).
• The $5,000 budget transfer threshold was first established in 1988.
• The average funding authorization in the 2020 capital budget for a capital project is $750,000.
• In 2019, there were 63 amendments to the budget – 75% of those amendments were adopted by the Finance Committee on its consent agenda.

Actions taken:

Not mentioned in the memo

Fiscal Impact:

Not mentioned in the memo.

Konkel’s Got Questions!

1. Why is this power through the end of the year, and not just through the end of the emergency order?

2.  The memo is written as if this intended to be a permanent change.  Is it another “we shouldn’t waste a good crisis” item?

3.  What actions have already been taken?

4.  What is the fiscal impact?

5.  Why now?  Why can’t the council and finance committee meet and make these decisions?  i.e.  Is this really needed?

Memo #14 – Waiving late fees and penalties for licenses and permits issued by the City Clerk’s Office, including late fees for alcohol beverage renewal applications (Legistar No. 60086)

Written by Assistant Attorney Steve Brist, pages 34

The order:

Not mentioned in the memo

Background:

• One of the major functions of the Madison City Clerk’s Office is the administration of the
  municipal licensing process.
• Licenses and permits issued by the Clerk expire on June
  30, 2020.
• The license renewal process starts well before the June expiration date.
• A large number of businesses subject to licensure are operating with reduced hours or are closed.
• This resolution waives late fees and penalties associated with licenses and permits administered by the City Clerk’s Office, including late fees for alcohol beverage licenses, to the extent not preempted by state law, commencing on April 1, 2020.
• The fee and penalty waiver continues until 60 days after the Director of Public Health Madison and Dane County and the Governor end the emergency actions to combat the coronavirus pandemic.

Why this is necessary:

• This year, the license renewal process is taking place during what may be a peak period for COVD-19 virus risk.
• Business have decreased or even no revenues.
• License fees may be a financial hardship at this time.

Actions taken:

• None listed

Fiscal Impact:

• The Finance Department estimates that this legislation will reduce revenues by $5,200
  per month for each month of the waiver period. This resolution is being implemented by
  the City Clerk and her staff. No significant administrative changes will need to be made
  to implement this change.

Konkel’s Got Questions!

1. What actions have been taken? None are listed.

2.  If the fees are being waived starting April 1, did they need to do this as an emergency order, or could the council and finance committee have just taken this up at their meetings?

Memo #15 – Resolution Suspending the Requirement that Developers Hold a Pre-Application Informational Meeting with the Urban Design Commission (Legistar File # 60122)

Written by Assistant City Attorney John Strange, pages 35-37

The order:

In her updated Emergency Order dated March 26, 2020, the Mayor temporarily suspended the enforcement of M.G.O. § 28.098(5)(a)2. requiring developers to hold a pre-application Planned Development Concept Presentation with Urban Design Commission prior to filing a Planned Development Application.

Background:

• M.G.O. § 28.098(5)(a)2. requires developers to hold a pre-application informational meeting with the Urban Design Commission to get feedback on the concept being proposed. At this meeting, Commissioners provide feedback, but do not vote and do not make a formal decision or recommendation.
• As a result of the Mayor’s Emergency Proclamation, the Urban Design Commission is prohibited from meeting at all, except on an ad hoc emergency basis as determined jointly by both the Mayor and Common Council President.
• When it does meet, the UDC Agenda will likely be full of items that required Urban Design District approvals or advisory recommendations.
• Emergency Order Number 10 temporarily removes the requirement that individuals proposing planned developments hold an informational meeting with the UDC prior to submitting an application.
• This will relieve the UDC of some work when they are able to meet and provide developers with a slightly more streamlined review process during uncertain economic times. Importantly, this Order does not remove any requirement that the application subsequently go to the UDC for approval or recommendation.

Why this is necessary:

• The development review process includes considerable crossover between the Plan Commission, Urban Design Commission, and Landmarks Commission. When any one of these commissions cannot meet at regular times, development can be substantially delayed.
• As a result of the health emergency and uncertain economic times to come, Staff has identified this provision as one that could be temporarily suspended in order to encourage continued development in Madison and, perhaps, ease the strain on the UDC, which may only be able to meet every four to six weeks during the health emergency.

Actions taken:

• So far, no actions have been taken pursuant to this Order. However, developers currently considering Planned Developments could benefit from this provision.

Fiscal Impact:

• No fiscal impact is anticipated.

Konkel’s Got Questions!

1. The mayor is creating the crisis by not allowing the committee to meet. Why not just let the Urban Design Commission meet?
2. Won’t this result in developers having more issues during the initial presentation of their project and ultimately result in longer meetings and additional delays for the developers?
3. Why did this need to be done as an emergency order?
4. Why wasn’t this brought up when the Coucnil voted to allow the mayor and council president to prevent committees from meeting?

Memo #16 – Resolution Authorizing 12-month extension of conditional use and demolition approvals (Legistar File # 60115)

Written by Assistant City Attorney John Strange, pages 38 -40

The order:

In her updated Emergency Order dated March 26, 2020, the Mayor temporarily suspended the enforcement of M.G.O. §§ 28.183(9)(b) and 28.185(9)(b) to allow the Director of the Department of Planning and Community and Economic Development (“DPCED”), after consultation with the Alderperson of the district, to approve extensions of conditional use and demolition approvals for an additional 12 months.

Background:

• Both conditional use and demolition approvals are valid for one (1) year from the date of approval, during which time the applicant must either lawfully commence the use or obtain a building or raze permit and start constructing or destructing the building.
• Conditional uses and demolitions allow the Director of the DPCED, after consultation with the alderperson of the district, to extend the approvals for an additional twenty-four (24) months, provided that the original plans approve by the Plan Commission have not
  been altered.
• Emergency Order Number 21 would allow the Director of DPCED, after consultation with the Alderperson, to extend approvals for up to a total of thirty-six 36 months instead of twenty-four (24) months, thus giving applicants an additional twelve (12) months to commence a use or begin construction or demolition of a building.

Why this is necessary:

• In normal times, it is not uncommon for applicants to use the full thirty-six months to commence a use or begin construction or demolition of a building. Given the current health emergency and uncertain economic times to come, Staff has already heard from some applicants who desire an additional extension before commencing a use or construction.
• In order to help the local economy as much as possible, providing these applicants with further extensions will help ensure the economic development associated with these projects will, hopefully, still occur in the City.

Actions taken:

• So far, the Director of DCPED has not taken action pursuant to this Order.
• However, at least one applicant is in the process of applying for an extension and staff believes other applicants who have expressed hesitancy to proceed because of the current economy are likely to apply.

Fiscal Impact:

• No fiscal impact is anticipated.

Konkel’s Got Questions!

1. There’s only been one request.  Did this need to be done in an emergency order? Why not introduce a resolution at the March 17th or March 31st council meeting for consideration?
2. Why wasn’t this referred to the Plan Commission?

Memo #17 – Resolution relaxing rules for acceptance of gifts for COVID-19 purposes, Legistar no. 60114

Written by City Attorney Michael May, pages 41

The order:

None listed.

Background:

• Current law requires prior approval of the Mayor and the Council to accept most donations over $10,000 and requires that the donation must then be appropriated by the Council before it may be used.

Why this is necessary:

• This sometimes takes weeks to accomplish.
• This resolution relaxes those requirements for donations for COVID-19 purposes, allowing such gifts to the City to be received and immediately used for activities related to COVID-19.
• The City has been contacted by parties interested in making such donations, and others may be offered in the immediate future.

How will this be implemented?

• A resolution confirming acceptance and appropriation would be brought to the Council
  for affirmation.

Actions taken:

None listed

Fiscal Impact:

None listed

Konkel’s Got Questions!

1.  Why not have the Finance Committee meet weekly and send these items to the Finance Committee for approval?

2.  What are the donations that have been offered and by whom?

3.  Were the donations turned away?

Memo #18 – Order No. 18: Resolution to waive all Street Vending License Fees under MGO 9.13 for the 2020-2021 vending season, except Camp Randall High Density Vending and UW Game Day Vending licenses, and authorize refunds for the fees already paid for the 2020-2021 vending season. (Legistar File # 60117)

Written by Assistant City Attorney Lara Mainella, pages 42-44

The order:

Background:

• The COVID-19 pandemic is causing unprecedented disruptions to businesses in Madison with the service industry being particularly hard hit. These small and micro businesses are especially vulnerable since they do not have the safety net many larger businesses have.
• In the service industry, we have seen layoffs by the thousands in less than a week and it continues to worsen.
• Emergency Order Number 18 allows Street Vending Staff to refund license holders and
  put desperately needed funds back in their businesses.
• It would also allow staff to waive fees and issue licenses so vendors that are currently allowed to operate to do so and prepare the remaining license holders to be ready to operate as soon as orders are lifted and they are able to be open for business.

Why this is necessary:

• The start of the 2020-2021 Street Vending season is quickly approaching. The season
  runs April 15 – April 14 annually.
• Vending Licenses are issued to operate Sidewalk Cafés, Merchant Vending (Downtown brick & mortar retailers), Food Carts, and Art & Craft vendors.
• The loss in business leading into the season has disrupted their day-to-day operations. As the number of special events cancelled grow and customers stay home, the loss in revenue will grow exponentially.
• Now facing full closures or restricted to carry out or curbside pick-up, brick & mortar businesses along State St., throughout downtown (Mall/Concourse) and citywide street vendors are significantly affected.
• Concern and challenge of how to pay and retain staff and cover operational costs.
• These businesses are also stepping up to help those in need by providing food to those with the least access to resources.
• OBR wishes to take action to support them.
• 65% of business owners that hold vending licenses are people of color and/or women.
• Licensed street vendors represents the most diverse group of business owners in the City.
• Vendors also employ people that are frequently holding more than one job.
• Supporting these business owners by waiving vending fees for the 2020-21 vending season will have a positive ripple effect on their employees, and a smooth transition to operations once the season is able to start.

Actions taken:

• OBR staff have created a timeline and implementation plan to refund payments to
  license applicants and issue needed licenses.
• Beginning 4/6/20 we submit requests to begin the refund process. Once the refund process is complete, staff will move on to license issuance.
• The vending season begins on April 15, 2020 and the Safer at Home Order currently runs to April 24, 2020. Food cart operators are currently allowed to operate under the Governor’s order so they will be prioritized for license issuance.
• Timeline:
  4/6/20 – Refund fees in Accela and populate the COVID-19 Refunds spreadsheet
  4/7/20 – Submit the information to Finance to process the refunds via PayPal and issue
  checks
  4/8/20 – Checks run weekly on Thursdays (currently due to COVID)
  4/15/20 – Issue Food Cart Vending Licenses
  4/24/20 – Issue Sidewalk Café, Merchant Vending, Art & Craft Vending Licenses
  Ongoing – Process applications that are only at COI, drawing or new applicants.
• Priority #1- Refund Vending Fees in Order by License/Permit Type

1. Refund Sidewalk Café Operators

2. Refund Merchant Vendors

3. Refund Food Cart license fees:

• • • a. Mall/Concourse Food
    • b. Southeast Campus
    • c. Late Night Vending
    • d. Basic and Umbrella Street Vending

4. Refund Art & Craft

• • • a. Mall Craft
    • b. Basic Street Vending
• Priority #2 – License Issuance in Accela by License/Permit Type

1. Issue Food Cart Licenses

• • • a. Basic/Umbrella Street Vending & Mall Food
    • b. Basic/Umbrella Street Vending & Southeast Campus
    • c. Basic and Umbrella Street Vending

2. Issue Art & Craft Licenses

• • • a. Mall Craft
    • b. Basic Street Vending

3. Issue Sidewalk Café Licenses that are at Fees or Fees Paid

4. Issue Merchant Vending Licenses that are at Fees or Fees Paid

Fiscal Impact:

• The estimated loss in revenue by refunding and waiving these fees is approximately
  $232,000.
• The estimated loss assumes no fee collection for Food Carts (Mall/Concourse, Southeast Campus and Late Night Vending Licenses), Basic/Umbrella Street Vending, Art & Craft Vending, Sidewalk Cafés, and Merchant Vending, for the 2020-2021 vending season.

Konkel’s Got Questions!

1.  If OBR wants to support businesses that are donating during the crisis, why not have that be the criteria for the refunds?
2. Or, in the alternative, create criteria to make sure that those who need the refund get it, and those who have the ability to make donations and don’t need the refund don’t get the refund.

Memo #19 – Resolution to extend the expiration date of work permits issued for fire protection systems (Legistar File # 60111)

Written by Assistant City Attorney Kate Smith, pages 46 – 47

The order:

In her updated Emergency Order dated March 26, 2020, the Mayor temporarily authorized work permits issued for fire protection systems currently in existence or in existence through the time that the Director of Public Health Madison and Dane County and the Governor of Wisconsin determine to end the emergency actions that they have taken to combat the coronavirus pandemic shall expire one year from the date or issuance or six months from the time that emergency action ends, whichever is greater.

Background:

• The City of Madison Fire Department (“MFD”) conducts inspections and issues work permits for fire protection systems under Madison General Ordinance Chapter 34.
• Fire Inspectors conduct annual inspections, testing and maintenance specified for automatic fire sprinkler systems.
• Work permits lapse unless the work either begins or resumes one year after the date of issue.
• In the event of further construction after the applicable time period ends, a new permit must be obtained pursuant to all the requirements of the code.
• Work permits have an expiration date in order to avoid situations where a permit is acquired in anticipation of upcoming fire code changes and kept open indefinitely in order to circumnavigate new requirements.

Why this is necessary:

• Safer at Home Order allows tradespeople to continue working as a critical trade.
• While construction is allowed to continue as essential infrastructure, work may be delayed or postponed based on the COVID crisis.
• MFD is still issuing work permits, but the department has fielded questions from people delaying planned work due to the current crisis.
• Extended expiration dates for up to a year will give people more time to complete work without keeping them open indefinitely should fire code regulations change.
• Since most construction work continues, MFD anticipates that primarily small projects will be impacted and does not expect a backlog of work.

Actions taken:

• There has been minimal action taken thus far. MFD has continued to issue work permits since construction is considered essential and will extend permits as needed.

Fiscal Impact:

• There is no fiscal impact as a result of this order. Currently critical trades work continues currently under the Safer at Home order.

Konkel’s Got Questions!

1. Did they need to do this as an emergency order?

2. If most construction is continuing did they need to do this at all?

3.  What “minimal action” has been taken?

Memo #20 – Resolution to temporarily reduce fees, waive late fees and offer
renewal fee deferment for the Public Health Madison Dane County licensed establishment program
(Legistar File # 60109)

Written by Assistant City Attorney Kate Smith, pages 48-49

The order:

In her updated Emergency Order dated March 26, 2020, the Mayor temporarily authorized Public Health Madison Dane County (“PHMDC”) to reduce the fees associated with food and drink establishments, temporary food establishments, tattoo and body piercing, hotels and tourist rooming houses, campgrounds and recreational campgrounds to the 2019 rate and waive late fees and offer renewal fee deferment if not contrary to Wisconsin Department of Agriculture, Trade and Consumer Protection (“DATCP”) guidelines.

Background:

• Wis. Stat. § 97.615(2)(d) allows local health departments to set the fees for their licensed establishment program based on their budget.
• Common Council passed an ordinance raising the fees in MGO Chapter 7 by an average of 17% for 2020 and beyond. At the time, Madison was experiencing rapid growth and adding new licenses each year and PHMDC anticipated a need to increase staff in order to administer the program.
• Governor Ever’s Safer at Home Order closed tattoo and body piercing establishments and restricted restaurants from operating beyond take-out and delivery.
• While the Order allows hotels and motels to stay open, their business is dramatically reduced by event cancellations and a global decline in travel.
• PHMDC’s budget and staffing levels is dependent on license revenue generated by industries hardest hit by the COVID crisis.

Why this is necessary:

• COVID-19 has dramatically altered the finances of the types of businesses PHMDC licenses under MGO Chapter 7.
• PHMDC expects to lose a number of establishments that are unable to survive the current crisis.
• The hospitality industry depends on people leaving their homes.
• Returning fees to the 2019 level will provide much-needed financial relief to our business community and allow operators to prepare for recovery once the COVID crisis ends.
• Because PHMDC depends on the licensed establishment program revenue, the Department is being proactive to retain its current work force by not adding the additional staff the fee increase generated.
• PHMDC is the local agent of the State Department of Agriculture, Trade and Consumer Protection (“DATCP”), which also licenses restaurants and lodging establishments.
• Out of consideration for widespread COVID-19 related business closures and decreases in revenues, DATCP is extending the late renewal period for licenses and waiving late fees.
• While local agents are able to determine whether or not to follow suit in their own jurisdictions, DATCP recommends every Agent follow their guidance.
• PHMDC wants to align with DATCP to provide consistency for operators throughout the state.

Actions taken:

• As of March 9, 2020, PHMDC set aside all the charged re-inspection fees.
• The invoices for the chargeable re-inspections were not sent and instead put into a folder for waiving at a later date.
• In May, renewals will go out to all licensed establishments (due the first week of July) and will reflect the 2019 rates.
• PHMDC will waive all late fees in 2020.

Fiscal Impact:

• The 2020 Adopted Operating Budget increased these fees by 17%, the increase was projected to generate $329,600 annually.
• Funding from the fee increase was intended to fund the creation of two positions (Sanitarian and Sanitarian Supervisor).
• Neither of these positions will be filled for the remainder of 2020.
• Public Health anticipates the loss in late fees to be $17,000.
• Deferment of renewal fees will result in a delay in receiving the revenue until 2021.
• At this time the fiscal impact is not quantifiable.
• Public Health estimates that the number of establishments seeking renewal will decrease by 10%, or 345.
• The Dane County Board of Supervisors has approved these measures as of April 2, 2020.
• A budget amendment is not proposed at this time.
• The Finance Department is closely monitoring the 2020 budget and subsequent budget amendment resolutions to fully fund the response efforts are anticipated in the future.

Konkel’s Got Questions!

• Can’t the health department do this on their own?
• If Dane County passed and ordinance, why can’t the city council?  Why is this an emergency order?

Memo #21 – Resolution to temporarily extend the expiration date of conveyance permits issued under MGO 40.08(3) (Legistar File # 60108)

Written by Assistant City Attorney Kate Smith, pages 50-51

The order:

In her updated Emergency Order dated March 26, 2020, the Mayor temporarily authorized conveyance permits issued under Madison General Ordinance Section 40.08(3), that expired during the time that the Director of Public Health Madison and Dane County and the Governor of Wisconsin imposed emergency actions that they have taken to combat the coronavirus pandemic, to have their expiration date extended to ninety (90) days from the time that emergency action ends.

Background:

• Madison Fire Department (“MFD”) is required to perform annual inspections of new and existing elevators in order to issue a Permit to Operate (“PTO”) under Madison General Ordinance Chapter 40.
• MFD has three fire inspectors who inspect all the elevators in the city on a rolling basis.
• Inspectors start the process approximately two months prior to the PTO expiring in order to give their customers time to complete any needed repairs.
• Depending on the type of elevator, one to two inspectors spend approximately 1.5 hours on site.
• The permit is issued for one year, at which point the process begins again.

Why this is necessary:

•  MFD evaluated which personnel were essential to be in the field and what work could safely be scaled back.
• Customers with existing elevators scheduled for inspectors were questioning why MFD inspectors were on site when they had been advised to social distance and close physical locations.
• New construction can continue under Safer at Home, so MFD made the calculation that they would continue to inspect and issue PTOs for new elevators but delay inspections of existing elevators.
• MFD believes a short delay for existing elevators will not affect customer safety and are evaluating how and when to restart inspections.
• As inspections are postponed, MFD cannot charge their customers nor issue new PTOs.

Actions taken:

• As of March 25, 2020, MFD has suspended all routine elevator inspections in order to decrease personnel in the field pursuant to Governor Ever’s Safer at Home order.
• While MFD has suspended existing elevator inspections, they do still inspect and issue PTOs for elevators in new construction sites.
• MFD continues to evaluate safeguards for inspections so may began reinstating existing elevator inspections in select locations.

Fiscal Impact:

• The cost of conveyance permits range from $290-$370, of which $50 is
  allocated to the State.
• Approximately 2,200 inspections remain in 2020.
• If the emergency ends soon (May 1st), the impact will be minimal.
• If it extends through the summer, the impact on 2020 revenue will be minimal but there may be additional overtime and contract costs.
• If the emergency extends into the fall, revenues may be deferred to 2021 in addition to the additional overtime and contract costs.

Konkel’s Got Questions!

1.  If tenant’s have an issue with their elevator and the landlord isn’t fixing it, who do they call?
2. How much will this cost in overtime in the future?

MEMO #22 – SUBSTITUTE – Substitute Resolution Suspending Parking Regulations under M.G.O. 12.122 (Legistar File No. 60139)

This one was issued separately – Memorandum on Resolution 60139 (Substitute)