CITY OF POMONA
COUNCIL REPORT
December 16, 2024
To: Honorable Mayor and Members of the City Council
From: Anita D. Scott, City Manager
Submitted By: Andrew Mowbray, Finance Director
SUBJECT: A RESOLUTION TO UPDATE THE AMERICAN RESCUE PLAN (ARP) SPENDING PLAN AND APPROVAL OF MEMORANDUMS OF UNDERSTANDING TO OBLIGATE ARP PROGRAMS RECOMMENDATION:
It is recommended that the City Council take the following actions:
Adopt the following Resolution:
RESOLUTION NO. 2024-203 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA APPROVING THE FINAL AMERICAN RESCUE PLAN (ARP) SPENDING PLAN; Approve a one-year Memorandum of Understanding with the Pomona Police Department (Attachment No. 2) to obligate ARP funding for the Homeless Engagement And Resources Team (HEART) in the amount of $2,488,395; Approve a two-year Memorandum of Understanding with the Rent Stabilization Department within the Neighborhood Services Department (Attachment No. 3) to obligate funding for full time positions to work in the areas of rental registry support, inspection, and general program implementation and administration in the amount of $2,403,386; Authorize the City Manager, or designee, to execute the agreement and any extensions, subsequent changes, or amendments thereto, on behalf of the City, subject to review and approval as to form by the City Attorney.
EXECUTIVE SUMMARY:
Approval of the resolution finalizes the spending plan for the American Resources Plan (ARP) funds. It also ensures that the City can expend all ARP funds in a timely manner, minimizing the risk of unused allocations. Approval of the Memorandums of Understanding with the Pomona Police Department and Neighborhood Services Department will obligate the use of ARP fund towards the HEART Program and provide ARP funding for full time positions to work in the areas of rental registry support, inspection, and general program implementation and administration within the Rent Stabilization Division. Additionally, there are four City council staff reports on this same December 16, 2024 agenda that will award contracts for various CIP projects, which will obligate these ARP funds as required by US Treasury Final Rule Guidelines.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☐ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $250 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $250 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
FISCAL IMPACT:
There is no fiscal impact to finalize the ARP Spending Plan. Funding appropriation for the HEART Program and administration of the Rent Stabilization Division are already included in the FY 2024-25 ARP Fund (F191).
PREVIOUS RELATED ACTION:
On June 7, 2021 as part of the FY 2021-22 adopted budget, $6.8M was budgeted in the General Fund for potential revenue loss and accepted the $45.37M of the ARP funds allocated to the City of Pomona by the US Treasury.
On August 9, 2021 an ARP study session was held, and discussion occurred regarding uses that will be eligible. The Mayor and City council provided direction and suggested a specific 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 November 15, 2021 as part of the FY 2021-22 1st Quarter, update to the Expenditure Plan was approved and $2.07M of ARP funds were appropriated for one-time payments included in the respective bargaining unit agreements.
On December 6, 2021the City Council approved appropriation of $6.9M of ARP funds for capital improvement projects – Park Restroom Construction Replacement, Mission Blvd Rehabilitation (White Ave to Towne Ave), and Garey Ave Rehabilitation (Aliso Street to Monterey Ave).
On December 20, 2021 an ARP Sub-committee consisting of the Mayor, and two (2) council members to assist with the process to appropriate the ARP funds for the specific programs and projects as set forth in the City Council approved ARP spending plan was formed.
On February 28, 2022 an update to the ARP Spending Plan was approved to transfer $544,901 for City support related to the pandemic.
On April 18, 2022 the City Council approved ARP appropriations of $370k for Buena Vista Avenue Rehabilitation – Mission Blvd to 9th Street and $500k Philadelphia Street Rehabilitation – San Antonio Avenue to East City Limit.
On May 16, 2002 an update to the ARP Spending Plan was approved to transfer $106k District 2 Microgrants and a status update of ARP FY 2021-22 Appropriations and FY 2022-23 Proposed Budget Appropriations was provided.
On June 6, 2022, the City Council approved the Proposed ARPA Policies and Procedures, and the Adopted FY 2022-23 budget that included appropriations increase of $500k to be used from ARP funds for Library youth services. An update to the ARP Spending Plan was approved to allow a reduction of $250k from the Health and Wellness Activities category, as well as a reduction of $250k from the Participatory Budget category to fund this increase to the Library.
On August 15, 2022, an update to the ARP Spending Plan was approved to allocate $1M for Citywide Rental Stabilization startup costs for consultant services, legal aid, and future work by City staff, $1.15M for Health and Wellness for possible uses including but not limited to concerts and community events as coordinated by the Mayor and councilmembers with City staff, mainly Neighborhood Services Department, $1.06M for Small Business Grants to fully appropriate funds allocated for this program, $600k for Real Time Crime Center (RTCC) which includes live-feed cameras on Holt Avenue ($300k) and build out of RTCC ($300k), and $200k for ARP Administration – Best, Best & Krieger support services, consultant services for subrecipient monitoring and ARP staffing services in Finance and Neighborhood Services.
On November 21, 2022, an update to the ARP Spending Plan was approved to allocate $211k for the Police Departments COPS Technology and Equipment Grant. This amount was offset from the General Fund Budget Shortfall category.
On December 5, 2022, Staff provided a summary of the PJP proposal and noted a number of concerns with the project as proposed at that point. During the meeting, the Council directed staff to work with PJP to revise its proposal to address staff’s concerns listed on the August 9, 2021 ARP Study Session Agenda item. On August 9, 2021, the City Council provided feedback and direction to staff on how they would like the $45.37M ARP funds allocated by December 2024 and spent by December 2026.
On April 17, 2023 the Pomona Jobs Program was awarded $631k ARP funds from the Economic Support for Pandemic and D1 ARP allocation in the amount of $350k and $281k respectively.
On May 15, 2023 the City Council authorized the use of $400,000 of ARP funds (Health and Wellness) for the Summer Concerts for the next four (4) years. As part of the May 15, 2023 ARP Update, City Council approved to move $6.8M of General Fund Revenue Loss, and allocate to two new spending plan categories: $3.5M for Staffing for ARP Assignments/Housing Stabilization Division, and $3.3M for a New Citywide Enterprise Resource Planning (ERP) System. In addition, $400k of the Small Business Grants was transferred to Economic Support related to the Pandemic, therefore adjusting the balance of these categories at $750k and $1.4M, respectively.
On June 5, 2023 as part of the Fiscal Year 2023-24 Adopted Budget Public Hearing, new appropriations from the American Rescue Plan Fund were discussed and approved in the ARP spending plan. Appropriations for the following spending plan categories included: $5M Universal Household Grant, $1.4M Economic Support Related to the Pandemic, $1M for Technology Upgrades, Leadership Development and Operational Efficiencies and $1M Participatory Budget. Furthermore, $31M of estimated unspent ARP funds are also included in the Proposed Budget.
On June 17, 2023 the City Council adopted Resolution No. 2023-119 to create a new project “District 4 – Jaycee Park Playground Upgrade,” Project No. 428-2590-XXXXX-71090 (Project). It also appropriated $200,000 of Coronavirus State and Local Fiscal Recovery American Rescue Plan (ARP) District 4 funding to the Project. This Project will replace the existing playground structure at Jaycee Park with new all-abilities playground equipment and will replace the existing rubberized surfacing.
On April 18, 2022 the City Council approved ARP appropriations of $370k for Buena Vista Avenue Rehabilitation – Mission Blvd to 9th Street and $500k Philadelphia Street Rehabilitation – San Antonio Avenue to East City Limit.
On August 21, 2023 the City Council approved ARP appropriations of $200k for the CIP Project, “Washington Park Community Center Rehabilitation”. This Project will provide for the rehabilitation of the entryway trellis and other existing amenities within the Washington Park Community Center to be determined based on available funding.
On August 21, 2023 the City Council approved ARP appropriations of $35k (D3) and $50k (Mayor) for the new CIP Project, “New Playground at Washington Park Baseball Fields”. This Project will construct a new playground in a currently empty, circular area adjacent to the baseball fields at Washington Park.
On August 21, 2023 the City Council approved to un-appropriate $158k of General Fund dollars from “Storm Water Lift Stations Rehabilitation,” and then appropriate $158kof American Rescue Plan (ARP) (D1) Fund to the same project. The requested appropriation will leave the CIP project partially funded.
On November 6, 2023 the City Council approved to un-appropriate $59k of Coronavirus State and Local Fiscal Recovery American Rescue Plan (ARP)(D5) funding from “Phillips Ranch Exercise Par Course Restoration,” CIP Project and appropriate this ARP funding to “Country Crossing Park Playground Resurfacing and Play Equipment,” CIP Project.
On November 6, 2023 the City Council approved to close four (4) completed CIP projects and enable the release of unexpended funds. In addition, the action created a new CIP project, “District 2 – New Playground at Ralph Welch Park,” and reappropriated $63,478 of General Funds from closing CIP Project and $90,183 of American Rescue Plan Funding (ARP) (D2) from “Buena Vista Avenue Rehabilitation – Mission Boulevard to 9th Street” CIP Project.
On November 20, 2023, the City Council accepted the donation of $10k is available to be funded from the most recently approved ARP Expenditure Spending Plan update that was approved by the City Council in May 2023. Funds are specifically available in the “Health and Wellness Activities” designated ARP program. It should be noted that when this donation is reported to the US Treasury, it will be categorized as a “General Government Service.” Funds are available in the ARP fund (191-4115-52285-10042).
On February 26, 2024, the City Council approved Resolution No. 2024-24 to unappropriate existing American Rescue Plan (ARP) funding from three existing CIP projects: the “New Playground at Washington Park Baseball Fields” Project, the “Country Crossing Park Playground Resurfacing and Play Equipment” Project, and the “District 4 – Jaycee Park Playground Upgrade” Project.
On March 18, 2024, the City Council approved Resolution No. 2024-34 to create a new project, “Meadow View Demonstration Garden,” Project No. 428-2590-XXXXX-71200 (Project) and appropriate $300,000 of District 5 Coronavirus State and Local Fiscal Recovery American Rescue Plan (ARP) funding and $100,000 of Mayoral ARP funding to the Project. This Project provides the design and construction of a demonstration garden on vacant residential lots along Meadow View Drive to include native, drought-tolerant plants and trees, water-wise irrigation, pathways, and seating/viewing areas.
On April 8, 2024, the City Council approved Resolution No. 2024-14 to unappropriate $10,000 of ARP funding from “Martin Luther King Jr. Park – Skate Park Expansion/Lights,” Project No. 428-2590- XXXXX-71092 and will appropriate this funding to “Public Safety Improvements – District 2,” Project No. 428-2590-XXXXX-68584 (Project).
On April 8, 2024, the City Council approved Resolution No. 2024-44 that increased the overall project budget for “Pomona Multi-Neighborhood Pedestrian and Bicycle Improvements,” Project No. 428-2590- XXXXX-67930 (Project) by appropriating $700,000 of District 6 ARP funding. These particular funds are designated for the enhancement of La Verne Ave., between Garey Ave. and San Antonio Ave., within District 6.
On April 8, 2024, the City Council approved Resolution No. 2024-52 that increased the overall Project budget for “ADA Curb Ramps and Path of Travel – Citywide (CDBG) (FY 22-23),” Project No. 428- 2590-XXXXX-67939 (Project) by $140,000 and allow for amendments to the construction contract with Garcon Construction, as well as, modify the project description to justify the usage of ARP funds.
On April 8, 2024, the City Council approved Resolution No. 2024-54 to add an additional $100,000 of Coronavirus State and Local Fiscal Recovery American Rescue Plan (ARP) and $35,000 of District 3 CIP Carryover Discretionary funding to CIP Project, “Washington Park Community Center Rehabilitation,” Project No. 428-2590-XXXXX-71095 (Project). This Project includes the reconstruction of the entryway trellis and kitchen upgrades in the Washington Park Community Center.
On May 6, 2024, the City Council approved Resolution No. 2024-65 to appropriate $155,000 of Coronavirus State and Local Fiscal Recovery American Rescue Plan (ARP) District 5 funding to “Phillips Ranch Exercise Parcourse Restoration,” Project No. 428-2590-XXXXX-71093 (Project). The Project will upgrade and/or replace the existing exercise stations along the greenbelt and other areas throughout the Phillips Ranch Assessment District.
On June 3, 2024, the City Council approved Resolution No. 2024-83 to redistribute $350k within the ARP Fund to the following programs and initiatives: Pilot Park Ambassador Program ($40k), a UCLA study on the Universal Household Grant program ($250k), and overhead costs for the Housing Stabilization Department ($60k). These changes will impact the “Civic Center Plaza—New Playground and Amenities,” Project No. 71063, by decreasing funding in the same amount ($350k).
On June 3, 2024, the City Council approved Resolution No. 2024-77 and the award of the construction contract to Gentry Brothers, Inc. that provided the funding to issue two separate Purchase Orders (PO) to begin construction on San Francisco Avenue in District 4 as part of “Street Improvements – Citywide (CDBG) (FY22-23 to FY 24-25),” Project No. 428-2590-XXXXX-71065, by appropriating ARP (D4) funds to this project.
On June 17, 2024, the City Council approved Resolution No. 2024-94 that changed the name and description of “District 4 Park Security Upgrades,” Project No. 428-2590-XXXXX-71091 to “District 4 Jaycee Park Snack Bar and Security Upgrades” (Project). It will also appropriate an additional $80,000 of Coronavirus State and Local Fiscal Recovery American Rescue Plan (ARP) District 4 funding to the Project. The updated Project will provide for upgrades to the snack bar at Jaycee Park, including new doors for enhanced security, as well as new netting at the baseball field to prevent baseballs from flying into adjacent residential properties.
On June 17, 2024, the City Council approved Resolution No. 2024-95 that created a new project, “New Flooring at Garfield Park Community Center,” Project No. 428-2590-XXXXX-71103 (Project) and appropriated $40,000 of Coronavirus State and Local Fiscal Recovery American Rescue Plan (ARP) District 4 funding to the Project. This project will replace the existing flooring in the Garfield Park Community Center.
On July 1, 2024, the City Council approved Resolution No. 2024-103 to appropriate $3.32M of American Rescue Plan Funds for the “Financial Software Project,” Project No. 428-2590-XXXXX-71048 and onboard Plante Moran’s project management and advisory services to assess the City of Pomona’s ERP systems and procedures and guide the City’s efforts on potential system replacements. Based on evaluation of proposals, Plante Moran was the most qualified, responsible, and responsive firm for the services needed.
On September 16, 2024, the City Council approved Resolution No. 2024-137 that resulted in the appropriation of ARP funds and the award of a construction contract to Dewberry Design-Builders, Inc. in the amount of $5,560,031.28 to provide construction improvements for “Pomona Library Facility Improvements,” Project No. 428-2590-XXXXX-74120 (Project).
DISCUSSION:
After a comprehensive review of the ARP Spending Plan, staff has identified opportunities for reallocating excess funds and addressing areas requiring additional funding support. Staff met with the ARP subcommittee after the last ARP Spending Plan Update (June 3, 2024) to discuss available funds and status of all obligated items to date. These meetings took place on September 23, 2024, October 22, 2024 and December 4, 2024. Following these detailed discussions and approval by the ARP subcommittee, staff is recommending the Final ARP Expenditure Spending Plan (Table 1) that reflects these findings. It is crucial to note that in accordance with US Treasury requirements, all funds must be obligated by December 31, 2024 and fully expended by December 31, 2026, with no provisions for plan modifications after the December 31, 2024 deadline. Furthermore, any unexpended or unobligated funds may need to be returned to the US Treasury. Below is the Final ARP Spending Plan.
As part of this process, staff are seeking approval of two Memorandums of Understanding (MOUs) to obligate ARP funds. One MOU with the Pomona Police Department for one-year implementation the HEART Program in the amount of $2,488,395, and another MOU with the Rent Stabilization Division within the Neighborhood Services Department to fund full time positions to work in the areas of rental registry support, inspection, and general program implementation and administration in the amount of $2,403,386.
In addition to the approval request on the MOUs, separate staff reports on tonight’s City Council meeting will approve awards to vendors to obligate ARP funds for the following Capital Improvement Projects (CIP): New Citywide Enterprise Resource Planning (ERP) System and Technology Upgrades, Meadow View Demonstration Garden, Martin Luther King Jr. Park – Skate Park Expansion/Lights Project, and Park Restroom Construction and Replacement. Furthermore, ARP funds are in the process of being obligated through an internal process, by issuing a purchase order or creating an agreement or amendment to an agreement for the following items:
Subrecipient Monitoring Agreement to Booth Management Consultant for $75k Contract Amendment to Forward for HUG Program to add $67k Contract Amendment to RSG Consulting for $261k (Carryover of obligated funds) Contract Amendment to the Pomona Jobs Program (PJP) for $300k Memorandum of Understanding (MOU) with Neighborhood Services Department for administering HUG Program for $50k Table 1
CONCLUSION
With a strict obligation deadline of December 31, 2024 and a full expenditure requirement by December 31, 2026, the above schedule reflects the Final Expenditure plan during the finite window. City staff met with US Treasury recently to discuss the City of Pomona’s ARP Spending Plan and we ensured them that on the December 16, 2024 City Council agenda all of Pomona’s ARP funds will be obligated per the guidelines set forth.
Prepared by:
Aleli Burgos
Deputy Finance Director
ATTACHMENTS:
Attachment No. 1 – Resolution 2024-203
Attachment No. 2 – MOU Police Department HEART
Attachment No. 3 – MOU Rent Stabilization in Neighborhood Services Department Finalize ARP Spending Plan and MOU with Police and Neighborhood Services