CITY OF POMONA
COUNCIL REPORT
August 21, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Andrew Mowbray, Finance Director/City Treasurer Rene Guerrero, Public Works Director
Chris Diggs, Water Resources Director
SUBJECT: RESOLUTION AMENDING THE FISCAL YEAR 2023-24 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET FOR “STORM WATER LIFT STATION REHABILITATION.” PROJECT NO. 428-2590-XXXXX-81056, AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN ECONOMIC DEVELOPMENT GRANT RECIPIENT AGREEMENT WITH Community Home Energy Revolution Project (CHERP, Inc.) RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2023-147 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, amending the FIscal YEAR 2023-24 capital improvement program (CIP) budget by unappropriating $158,000 of general funds from “STORM WATER LIFT STATIONS REHABILITATION,” PROJECT NO. 428-2590-XXXXX-81056, appropriating $158,000 of general fund BALANCE to general services DEPARTMENT (101-0101-52285-00000), appropriating $158,000 OF CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY AMERICAN RESCUE PLAN (ARP) (D1) FUNDING TO THE PROJECT, AND CHANGING THE CIP PROJECT DESCRIPTION, and Award an Economic Development grant to Community Home Energy Revolution Project (CHERP, Inc.) in the amount of $158,000.
Authorize the City Manager, or designee, to execute the agreement and any amendments, upon approval of the City Attorney as to form.
EXECUTIVE SUMMARY:
Approval of this action will un-appropriate $158,000 of General Funds from “Storm Water Lift Station Rehabilitation,” Project No. 428-2590-XXXXX-81056, and reappropriate these funds to the City’s General Services account, (101-0101-52285-00000), to assist with funding CHERP Solar Works, which is a project of the California-based 501(c)(3), Community Home Energy Revolution Project (CHERP, Inc.). CHERPs mission is to extend the reach of renewable energy to economically disinvested and environmentally burdened communities. Further, this action will appropriate $158,000 of American Rescue Plan (ARP) (D1) funds to the same CIP project. Finally, it will change the project description to be consistent with ARP goals and priorities. The City will award $158,000 to CHERP via an Economic Development grant that CHERP will utilize and combined with $42,000 of other CHERP funds, allowing CHERP to then realize an additional $600,000 capital infusion from LENDonate. LENDonate’s mission is to create a new market that allows capital to flow more freely in the non-profit sector. Through an extensive network of investors and non-profit organizations, LENDonate seeks to develop a dynamic, expressive marketplace that connects affordable capital with impactful projects in the non-profit sector. This $800,000 of total fund for CHERP will assist the organization towards its goals.
Through a licensing agreement with idea lPV LLC, CHERP will be producing the world’s most advanced solar panels, in a non-profit assembly factory in Pomona, California. They are also incubating a network of distributed manufacturing centers, called the Locally Grown Power™ national solar factory network, in economically disadvantaged and environmentally burdened communities across the country.
CHERP currently employs five full-time employees, as well as one part time position. CHERP will pledge to employ this same number of positions until at least December 31, 2025 and will commit to create no less than one additional full time position by January 15, 2024.
FISCAL IMPACT:
The fiscal impact is presented below and will un-appropriate $158,000 of General Fund dollars from “Storm Water Lift Stations Rehabilitation,” Project No. 428-2590-XXXXX-81056; appropriate $158,000 of American Rescue Plan (ARP) (D1) Fund to the same project. The requested appropriation will leave the CIP project partially funded. The following tables summarizes the proposed fiscal impacts of the funding re-appropriation:
Table 1
Category
“Storm Water Lift Stations Rehabilitation”
Project No. 428-2590-XXXXX-81056
Beginning Budget
$1,375,000
Un-Appropriation of General Funds
Appropriation of American Rescue Plan (ARP) (D1) Fund
($158,000)
$158,000
New Beginning Budget
$1,375,000
Expenditures and encumbrances (as of August 9, 2023) ($347,686,)
Balance Remaining for Construction Contingency, Administrative and Miscellaneous Costs $1,027,314
In addition, this action will appropriate the $158,000 to the General Services Department in the City’s General Fund to provide CHERP with an Economic Development Grant which CHERP will utilize this City Assistance to combine with $42,000 of other CHERP funds which will allow CHERP to realize an additional $600K from LENDonate.
PREVIOUS RELATED ACTION:
On June 7, 2021, as part of the FY 2021-22 adopted budget, the City of Pomona (City) accepted $45.37M of ARP funds from the United States Department of the Treasury, of which $6.8M was budgeted for potential revenue loss.
On August 9, 2021, an ARP study session was held where eligible uses of ARP funds were discussed. The Mayor and City Council provided direction and suggested a plan to allocate $45.37M of the ARP funds.
On September 20, 2021, the Mayor and City Council approved the $45.37M City of Pomona ARP Expenditure Plan.
On June 6, 2022, the City Council approved the proposed ARP Policies and Procedures and adopted the FY 2022-23 budget.
On August 15, 2022, the City Council adopted Resolution No. 2022-155 approving an update to the City of Pomona ARP Expenditure Plan for FY 2022-23 and increased revenue estimates and appropriations in the amount of $4,000,000.
On June 5, 2023, the City Council adopted Resolution No. 2023-98 approving the FY 2023-24 CIP Budget DISCUSSION:
In order to assist with funding the City’s CHERP solar program, the actions will un-appropriate $158,000 of General Funds from “Storm Water Lift Stations Rehabilitation,” Project No. 428-2590-XXXXX-81056, and reappropriate these funds to the City’s General Services account. Because the “Storm Water Lift Stations Rehabilitation,” project furthers goals that are consistent with ARP funding priorities, $158,000 of ARP D1 funding is being appropriated to the project. With the appropriation of ARP funding, it is necessary to change the approved project description that was included with the adopted 2023-24 CIP Budget. The following language has been added to the CIP description for the project:
“Guidance from the Department of the Treasury allows ARPA funds to be to make necessary investments in water, sewer, or broadband infrastructure. The project will assist with control of contaminated runoff to protect the water quality of the receiving body and assist with monitoring of data collection regarding stormwater discharges. The project removes standing water and threat to public health and safety. It will also assist with control of contaminated runoff to protect the water quality of the receiving body and alert when any system malfunctions. It is located in a Qualified Census Tract promoting health and well-being and furthering equity among a population disproportionately affected by the Covid-19 pandemic.” Through a licensing agreement with idea lPV LLC, CHERP will be producing the world’s most advanced solar panels, in a non-profit assembly factory in Pomona, California. We're also incubating a network of distributed manufacturing centers, called the Locally Grown Power™ national solar factory network, in economically disadvantaged and environmentally burdened communities across the country. As a California-based 501(c)(3), Community Home Energy Revolution Project (CHERP, Inc.), CHERPs mission is to extend the reach of renewable energy to economically disinvested and environmentally burdened communities.
The City will award $158,000 to CHERP via an Economic Development grant that CHERP will utilize and combined with $42,000 of other CHERP funds, allowing CHERP to then realize an additional $600,000 from LENDonate.
Prepared by:
_____________________________
Shandy Dittman, Public Works Fiscal and Project Manager Damian Martinez, Senior Management Analyst
Beth Senebandith, Principal Accountant
ATTACHMENT:
Attachment No. 1 – Resolution No. 2023-147
Attachment No. 2 – CIP Details Sheet
Resolution Amending FY 2023-24 CIP Budget by Un-appropriating $158,000 of General Funds and appropriating $158,000 of ARP funding to “Storm Water Lift Stations Rehabilitation.” Project No. 428-2590-XXXXX-81056 and awarding an Economic Development grant to CHERP