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Staff Report
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Report To: Council
Date of Meeting: April 14, 2020
Reviewed By: Andrew C. Allison, CAO
File Number:
Report Subject: COVID-19 Business Continuity Plannin
Recommendation:
1. That Report CAO-012-20 be received for information.
Report Number: CAO-012-20
By-law Number:
Resolution#: C-173-20
Municipality of Clarington
Report CAO-012-20
Report Overview
Page 2
In 2008, the Municipality approved a Business Continuity Plan. The purpose of the Plan is to
provide a guide to maintain essential services in the event of a nation-wide pandemic. This
report specifically addresses staffing issues in relation to the maintenance of Municipal
services during the COVID-19 pandemic.
1. Background
Emergency Planning
1.1 Through Report COD-27-08, Council endorsed a Municipal Business Continuity Plan
(the "Plan") to guide municipal departments in the event of a pandemic or similar
emergency. The Plan is part of the Municipality's overall Emergency Plan. It was
developed in anticipation of a pandemic caused by contagious respiratory illnesses such
as COVID-19.
1.2 The Plan was prepared to supplement Provincial and Regional Plans. It specifically
states that "[t]he health care of Clarington residents will remain the responsibility of the
Region of Durham, assisted by the Municipality as required."
1.3 The aim of the Plan is to outline operational concepts, roles, responsibilities and
procedures that will support the Municipality in its efforts to prepare for, respond to, and
recover from a pandemic. The focus of this Report is those parts of the Plan that
address issues respecting the maintenance of essential services and functions, and
related staffing issues.
1.4 The Plan recognizes six pandemic phases. Amongst other things, Phase 5 requires the
Municipality to monitor and sustain most municipal services, limit public assembly and
implement social distancing (close indoor and outdoor recreation facilities, public parks
for public assembly and programs) and initiate a work -from -home program for identified
staff where applicable.
1.5 We are now in Phase 6 which is the final phase of the Plan. One of the stated actions in
Phase 6 is to "sustain essential services only". This requires every Municipal
Department to assess its operational requirements (including staffing) that are required
to maintain essential services.
1.6 The Plan anticipates that, similar to SARS and the Power Outage in 2003, residents will
have an expectation of service continuance in the event of a pandemic.
Municipality of Clarington Page 3
Report CAO-012-20
1.7 At the Joint Committee meeting on April 6, 2020, the following resolution was referred to
the April 14, 2020 meeting of Council:
That the CAO be directed to lay off all non -essential staff on May 1, 2020 if the
COVID emergency is still in effect as of that date.
1.8 This draft resolution is discussed in sections 2.18 through 2.20 of this Report.
2. Business Continuity
Essential Services
2.1 The Province has issued several orders under the Emergency Management and Civil
Protection Act (EMCPA) that impact municipalities and the delivery of their services.
The following closure orders directly impact Clarington:
Facilities providing indoor recreational programs (ordered on March 17, 2020 and
subsequently extended to April 13, 2020);
2. Public libraries (ordered on March 17, 2020 and subsequently extended to April
13, 2020);
3. Outdoor playgrounds, portions of park and recreational areas containing outdoor
fitness equipment and outdoor sports facilities, however maintenance of these
facilities is permitted (ordered on March 30, 2020 for 14 days with possible
extension).
2.2 Orders made under the EMCPA are for 14 days and may be renewed by the Province
for a subsequent 14-day period. The current Order requiring recreation facilities to
remain closed will expire on April 13, 2020 unless extended.
2.3 On March 23, 2020, the Province ordered the immediate closure of "non -essential
businesses" (Regulation 82/20). Regulation 82/20 does not apply to municipalities.
2.4 On April 3, 2020, the Province announced revisions to the essential services list
(Regulation 119/20), however there was no change to the exemption for municipal
operations or delivery of services.
2.5 The extent to which municipal capital projects are impacted by the updated list of
essential businesses is less clear. While some municipalities have taken the position
that all municipal capital projects are exempted from the closures, we have taken a
more cautious approach — one that recognizes the Province's concern for public health
in the construction industry. The Province's regulation that defines essential services
(82/20 as amended by 119/20) provides for the continuation of construction projects
Municipality of Clarington
Report CAO-012-20
Page 4
related to critical infrastructure, and many municipal capital projects fall into this
category. The regulation also deems as essential any business that delivers or supports
the delivery of a number of community services including roads, sewers, and provision
of water. This work will continue, but these job sites will be strictly controlled to prevent
the risk of infection and will be subject to a project specific COVID-19 health and safety
work plan. Municipal infrastructure projects that cannot demonstrate implementation of
adequate health and safety measures will be temporarily suspended.
2.6 Certain capital projects involve work by construction contractors that do not fall within
the scope of an essential business under the regulation. These projects fall outside of
work that is considered in the regulation to be necessary to ensure the safe and reliable
operations of critical infrastructure. Staff will be required to make a case -by -case
determination of which municipal capital projects are captured by the regulation. For
example, the capital improvements to the Bowmanville Branch of the library have been
identified as a construction project that is not permitted under the regulation, and work
has therefore been temporarily suspended. Also identified as falling outside of the
regulation are the accessibility improvements to the Orono Town Hall. The tender award
on the Council agenda for April 14 can be approved, and a construction schedule will be
finalized after the emergency business closure order expires or is revoked.
Continuity Plans
2.7 Consistent with the Pandemic Plan, staff have prepared continuity plans for each
department. These plans do not take into account any proposed corporate
restructuring. They also do not consider any additional workload impacts related to the
pandemic. Only potential workload reductions that are COVID-19 related have been
considered. However, it is important to recognize that COVID-19 has significantly (but
hopefully temporarily) increased workload in some areas of the organization.
2.8 The first step in the business continuity planning process was to see which of the
Municipality's services should continue to be delivered. Attachment 2 to Report CAO-
004-14 identified a total of 145 services that were being delivered across the
organization. Department Heads looked to that list as a guide to determine which
services could and should continue. As is the case in every municipality that we have
communicated with, our overall conclusion was that other than services that cannot
continue (e.g. recreation services and crossing guard services), most municipal services
should continue, subject to the qualifications set out in sections 2.5 and 2.6 above.
This, in part, is premised on a desire to do everything possible to deliver Council's
approved mandate of services in 2020.
2.9 The second step was to determine the level of staffing required to maintain services
until the end of April (Phase 1), end of May (Phase 2), and June 30 (Phase 3). This step
required a critical analysis of the responsibilities of every employee in every department
other than Emergency and Fire Services. That analysis led to the conclusion that there
Municipality of Clarington
Report CAO-012-20
Page 5
are some positions that likely will not be able to carry on beyond some of the critical
dates. As an example, even before the Province passed Regulation 119/20 to remove
some construction projects from the list of essential services amended its list of non-
essential services, Building Services (part of the Engineering Department) was identified
as an area where staffing levels would be impacted if development activity decreased.
Regulation 119/20, passed on April 3, 2020, will allow some industrial projects to
proceed, but most commercial projects cannot. Residential construction projects can
also proceed, but only if either a footing permit or above grade structural permit have
been issued (e.g. Parkview Lodge) or renovations were started before April 4, 2020.
Obviously, these changes may temporarily impact staffing levels in Building Services.
We are still legally required to accept and process building applications, but the volume
of applications will likely decrease. Another example was Municipal By-law Enforcement
- but that was before the Province delegated enforcement responsibilities for Provincial
orders under EMCPA to municipalities.
2.10 The third step was to assess how best to ensure that the necessary level of staffing is
maintained to ensure business continuity, recognizing that we have an obligation to
protect the health and safety of our employees and the public while doing so.
Staffing Levels
2.11 The overall conclusion out of our business continuity planning was that in order to
maintain those services that will continue, current staffing levels should be maintained at
this time. The analysis recognized possible declines or changes in business activity,
what is required to maintain a business presence, and potential redeployment. The
specific rationale in support of this conclusion is set out in sections 2.12 through 2.17
below.
2.12 Current Levels -Staffing levels throughout the corporation are already below normal
levels.
On March 26, 2020, 339 part-time staff were advised that they would be placed on
Declared Emergency Leaves (DELs) as provided for under Provincial legislation. There
simply was no opportunity to meaningfully redeploy all of these valuable staff members.
Existing staff levels are lower than normal because we have positions that are currently
vacant as a result of (a) the reorganization (7 full-time); (b) a freeze that we placed on
new positions approved in the 2020 budget (3 full-time equivalents), (c) recent
retirements (3 full-time), (d) maternity and paternity leaves (1 full-time), (e) freeze on all
seasonal hires (5 full-time); (f) long term sick leave vacancies not back filled (6 full-time);
and (g) voluntary leaves of absence (1 full-time). These total 26 full-time equivalents.
The full-time positions reflected in this figure (25) equate to approximately 9.6% of
Clarington's normal full-time labour force (excluding Emergency and Fire Services).
These figures do not include the 339 non -voluntary DELS, one voluntary DEL, or the
Municipality of Clarington
Report CAO-012-20
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absenteeism numbers below. They also do not include any figures from Emergency
and Fire Services.
On the assumption that we can run summer programming in Community Services, a
total of 71 summer student positions need to be filled across the entire organization
(other than Emergency and Fire Services) that are eligible for subsidy under the Federal
Government's Canada Summer Jobs Program. These positions had been placed on
hold, but as a result of the Federal Government's announcement on April 8, 2020 to
subsidize these wages (at $14 per hour), we will be proceeding with these hires at the
appropriate time. The estimated total for this wage subsidy is $494,000.
2.13 Projected Workforce Absenteeism — Phase 5 of our Pandemic Plan projects 10-15%
absenteeism due to "fear factors" of contracting the virus. The Region's continuity plan
projects that all workforces could experience absenteeism as high as 40% in the event
of a pandemic. Our Plan notes that `[t]his absenteeism will be caused for several
reasons in addition to experiencing virus -like symptoms" and that "[e]mployees may be
required to arrange for care of ill family members as health care facilities will be
maximized. Children may not be able to attend school due to absenteeism of the
educational staff, and, elderly family members may need additional home care." All of
the above conditions qualify for access to a DEL. In addition, we have offered staff the
opportunity to use flex time (with no premiums or overtime on flexed hours), voluntary
DELS and voluntary leaves of absence.
From March 14, 2020 (the date that we closed our facilities to the public) until April 9,
2020, Clarington has experienced a total of 115 lost days as a direct result the COVID-
19 pandemic. This is attributable to employees who cannot work from home but have
received health advice to self isolate. Nine employees worked from home through their
isolation periods and so there were no lost days for them. We are taking a progressive
approach to managing the health risk and erring on the side of public safety — if health
guidelines suggest self isolation, then the employee will be expected to self isolate.
The bottom line in terms of pandemic planning is that we should anticipate higher than
normal short-term absenteeism during a pandemic.
2.14 Social Distancing — In order to protect our staff, we have implemented strict social
distancing measures in the workplace. This has resulted in some inefficiencies that are
unavoidable (e.g. limiting the number of employees travelling in a municipal vehicle and
filling of sandbags).
2.15 Redeployment Opportunities — Every Department has a backlog of work that needs to
be undertaken but has been on hold due to resource issues. In some cases, the
backlog is several months (e.g. forestry work orders in Operations and records retention
and digital conversions in Clerks and Engineering). There is also proactive work that
can be undertaken.
Municipality of Clarington
Report CAO-012-20
Page 7
If, and to the extent that, staff in one Department can be operationally redeployed to
another Department, we can address this backlog. The list of redeployable work
compiled by Department Heads is extensive. There is ample redeployable work to keep
most (but not necessarily all) staff meaningfully occupied and engaged at least until the
end of May.
We have been communicating regularly with the executive of CUPE Local 74. They
have worked with their bargaining unit employees to communicate the importance of
working together. They have demonstrated a commitment to addressing the challenges
presented by this pandemic by being open to redeployment suggestions. They are
working cooperatively with management to help control labour costs during this
pandemic and potentially save costs when we come out of it (e.g. no shift premiums or
overtime). As far as staff are aware, no Greater Toronto and Hamilton Area
municipalities (lower, upper or single tier) have laid off any full-time CUPE or non-
affiliated employees at this time (other than library staff). Our understanding is that
most municipalities are pursuing redeployment of full-time staff as a means of
maintaining services for as long as reasonably possible. All non-affiliated staff have
also demonstrated exceptional commitment to continuing adjustments to workload,
hours of work and other employment related conditions during this time.
The Region of Durham has a very detailed organization -wide Redeployment Strategy
that has been designed to respond to the COVID-19 pandemic. Our intention is to adopt
a redeployment protocol similar to theirs. The flowchart attached to this Report
(Attachment 1) identifies the process each department will go through in order to
appropriately reassign staff. This process will respect all the collective agreement
provisions and any legislative requirements.
2.16 Economic Stimulus — The primary purpose of every step that we have taken to date is
the need to keep people safe and healthy. This includes our staff and the public. But
there is a secondary objective - managing the economic challenges that COVID-19
presents and maintaining as much as possible a resilient local economy. The decisions
that have to be made regarding which services should be continued and what staffing
levels are necessary to support them must always keep public health and safety top of
mind, but this secondary objective must also be considered. Section 2.1 of this Report
identified orders from the Province that were clearly focused on public health concerns,
but the Provincial and the Federal governments have also issued orders and made
policy decisions that are intended to help sustain our economy.
As an example, the Federal Government's Canada Emergency Wage Subsidy is
designed to help businesses keep employees on their payroll through the challenges
posed by the COVID-19 pandemic. It provides a 75% wage subsidy to eligible
employers for up to 12 weeks, retroactive to March 15, 2020. The subsidy "aims to
prevent further job losses, encourage employers to re -hire workers previously laid off as
Municipality of Clarington
Report CAO-012-20
Page 8
a result of COVID-19, and help better position Canadian companies and other
employers to more easily resume normal operations following the crisis ... It was done
with the expectation that employers will do their part by using the subsidy in a manner
that supports the health and well-being of their employees." This wage subsidy does not
apply to public bodies (including municipalities), but the policy foundation for the subsidy
does — employers (including public bodies) should strive to keep people working. This
may explain why there are currently no full-time Federal, Provincial or Municipal staff
(other than Library staff) that have temporarily lost their jobs in Ontario (that staff are
aware of) and why Premier Ford has publicly stated that he has no plans to reduce
staffing levels at the Province (68,000 provincial public servants).
2.17 Labour Implications — The labour relations issues respecting any reduction in staffing
are discussed in a confidential memorandum from Hicks Morley LLP dated April 9, 2020
(Attachment 2 to this Report).
Draft Resolution
2.18 At the Joint Committee meeting on April 6, 2020, the following resolution was referred to
the April 14, 2020 meeting of Council:
That the CAO be directed to lay off all non -essential staff on May 1, 2020 if the
COVID emergency is still in effect as of that date.
2.19 The draft resolution raises several issues, some of which have been dealt with above.
The issue of what is "non -essential" was discussed in sections 2.1 through 2.6. The
legal and practical implications of any layoffs are discussed in Attachment 2.
2.20 If there is a decision to reduce staffing, there needs to be clarity regarding when it will
be triggered. Staff assume that the "the COVID emergency" referred to in the draft
resolution is the date that the Province's closure orders under EMCPA that impact our
facilities are no longer in effect. This likely is a date that will precede the date that the
Province's Declaration of Emergency will be lifted. With the present COVID-19
conditions still escalating, the length of the Province's Declaration is unpredictable.
3. Financial Implications
3.1 The COVID-19 pandemic has had a significant impact on the Municipality's financial
projections. A detailed cashflow analysis will be provided by the Finance Department at
a future date. Below are some estimates of revenues lost as a result of service
disruption through to the end of May 2020.
3.2 Following the decision to suspend recreation programming and close indoor recreation
facilities from March 14 to April 5 inclusive, Community Services prepared revenue loss
projections for this closure period and beyond. With the subsequent cancellation of
Municipality of Clarington
Report CAO-012-20
Page 9
spring recreation programming and indoor facility permits up to May 31, these
projections were reviewed again. With a total 2020 budget for revenues of
approximately $5.2M, this significant disruption to normal operations will result in a loss
of approximately $1 M. This revenue loss would consist of cancelled program
registrations, daily admissions, facility rental permits and fitness/swimming
memberships.
3.3 Although we are unable to quantify the value at this time, some of the revenue lost could
be recovered as we move out of the current crisis and begin to return to normal
operations. This could include planning an early start to the 2020/21 ice season to
accommodate the lost spring try -outs. Staff will also work with existing fitness and
swimming members to extend their memberships rather than process cancellations.
This would ensure our existing membership base is retained and the monthly revenues
return to their pre COVID-19 levels.
3.4 The Clerks Department estimates that lost parking ticket revenue over March, April and
May will be $78,000. This revenue will not be recovered.
3.5 The Operations Department estimates that lost field permit revenue over the months of
April and May will be approximately $40,200. It is possible that a small portion of this
revenue can be recovered.
3.6 Building and Planning revenues were on target until the shut down and have continued,
but are starting to decline. We anticipate that they will rebound once the pandemic has
eased and construction returns to a normal level, but the timing and extent of the
rebound is uncertain.
3.7 The estimate savings for part-time compensation budgeted for, but not paid, in
Community Services up until the end of May is $480,460.
4. Conclusion
4.1 The recommended course of action in this Report is based on information available as
at April 9, 2020. Not unlike every other issue that we have had to respond to in relation
to the COVID-19 pandemic, things will change, and our response may therefore have to
change.
4.2 The recommended approach to staffing is premised on the assumption that staff will
continue to be meaningfully engaged in the delivery of Municipal services. If that is not
happening, staffing levels will have to be reduced. The business continuity plans
prepared by Department Heads recognize this. Depending on how long the pandemic
continues, we will eventually lose our ability to meaningful engage or redeploy staff in
certain areas of operation. When we reach that point, we will have to consider further
staff reductions.
Municipality of Clarington Page 10
Report CAO-012-20
4.3 It is respectfully recommended that this Report be received for information.
Staff Contact: Andy Allison, CAO, 905-623-3379 ext. 2002 or aallison(cr clarington.net
Attachment 1 — Redeployment Flowchart
Attachment 2 — Confidential Memorandum from Hicks Morley LLP dated April 9, 2020
Requesting Division
submits Re -deployment
Request Form to
redeployment@durham.ca
Re -deployment Team
acknowledges and
assigns the resource
request
Re -deployment Team
connects with staff
available for
re -deployment who are
qualified
Employee
indicates they
are NOT
available
Re -deployment
Team documents
reasons
Re -deployment
Team may advise
Service Area
Leads
Employee
declines
assignment*
Requesting
Division
identifies more
re -deployed staff
are reauired
Employee
indicates they
are available for
re -deployment
Re -deployment
team provides
employee
information to
the Requesting
Division
Requesting
Division contacts
employees
Requesting Division
notifies the
Re -deployment
Team of outcome of
contact with the
Employee
accepts
assignment
Lead and LRA Re -deployment Team
may be notified updates Critical Activities &
of "unreasonable Status Document on EOC
declines" Site
Re -deployment Team sends
confirmation email to re-
deployed employee with
copy to Home Supervisor