CITY OF POMONA
COUNCIL REPORT
April 6, 2026
To: Honorable Mayor and Members of the City Council
From: Anita D. Scott, City Manager
Submitted By: Beverly Johnson, Neighborhood Services Director SUBJECT: AMEND THE FY 2025-26 OPERATING AND CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGETS AND AWARD A CONSTRUCTION CONTRACT TO ANGELES CONTRACTOR, INC. (ACI) IN THE AMOUNT OF $2,773,405 FOR THE INSTALLATION OF HOUSING MODULARS RECOMMENDATION:
It is recommended that the City Council take the following actions:
Adopt the following Resolution:
RESOLUTION NO. 2026-34 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA TO AMEND THE FY 2025-26 OPERATING BUDGET TO ADJUST REVENUE ESTIMATES AND APPROPRIATIONS FOR TRI-CITY MENTAL HEALTH SERVICE ACT FUNDING (TRI-CITY) AND AMEND THE FY 2025-26 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET BY CREATING A NEW CIP PROJECT, “2040 N. GAREY AVENUE HOUSING UNITS”, FD428 CIP | CC1791 CIP | WORKTAG: PRJ-00004 APPROPRIATING $4,448,850 IN TRI-CITY GRANT FUNDING AND REAPPROPRIATING $985,567 OF SERIES AQ HOUSING BOND PROCEEDS FROM “252 E. 4TH STREET MAJOR REHABILIATION,” FD428 CIP | CC2590 CIP | WORKTAG: PROJECT 71210 TO NEWLY CREATED PROJECT.
Award a construction contract to ACI for the installation of Pre-Fabricated Modulars and Site Improvements at 2040 N. Garey Avenue, to include base bid items and allowances in the total amount of $2,773,405; and Authorize the City Manager, or her designee, to execute the construction contract and any subsequent change orders on behalf of the City of Pomona.
EXECUTIVE SUMMARY:
The proposed action seeks City Council approval to award a construction contract to ACI in the amount of $2,773,405 for the installation of modular housing units and site improvements, and to authorize the City Manager to execute the construction contract and any necessary change orders (Attachment No. 3 – Construction Contract).
Adoption of this item will also amend the FY 2025–26 CIP budget to support the development of housing units at 2040 N. Garey Avenue. The amendment includes the creation of a new CIP project titled “2040 N. Garey Avenue Housing Units” and appropriates $4,448,850 from Tri-City Grant Funds. Additionally, it reappropriates $985,567 in Series AQ Housing Bond Proceeds to the project.
These actions support the City’s strategic priorities by increasing housing availability, optimizing the use of bond and grant funding, and enhancing essential community services 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 $500 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $500 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:
On November 3, 2025 City Council approved the following increases to revenues and appropriations: Miscellaneous Grants Budget FD215, Miscellaneous Grants | CC1791, Neighborhood Services Programs | Grant-State | GR58821 & GR58822 for $2,767,800 and $1,681,050 respectfully. Neighborhood Services would like to unappropriate these two grant allocations and instead appropriate the entire amount of $4,448,850 to FD 215, Grant-Miscellaneous | CC1791, Community Development | Grant-State | GR58821 and rename GR 58821to be 2040 N. Garey Avenue.
With the creation of the new CIP 2040 N. Garey Avenue Housing Units (Worktag: PRJ-00004), appropriate the available $4,448,850 of Tri City Mental Health Authority State Funds to the 2040 N. Garey Avenue Housing Units project (FD215 Grant-Miscellaneous| CC1791, Neighborhood Services Programs | Grant-State | GR58821 (2040 N Garey Avenue) - 2040 N. Garey Avenue Housing Units CIP (PRJ-00004).
Unappropriate $985,567 of Series AQ Housing Bond Proceeds from 252 E. 4th Street Major Rehabilitation FD247 Low/Mod Ser AQ Projects | CC1791 Community Development | Worktag Project 71210 and appropriate this same amount to the new CIP Project, 2040 N. Garey Avenue Housing Units FD 428, CIP | CC 1791 | Worktag: PRJ-00004.
PREVIOUS RELATED ACTION:
On November 3, 2025, the City Council accepted $4,448,850 from Tri-City Mental Health for the creation of permanent supportive housing projects within the City of Pomona.
On March 16, 2026, the City Council awarded a Sole Source Purchase with LifeArk SPC in the amount of $2,245,001 for the acquisition of Prefabricated modular housing units for the development of permanent supportive housing.
DISCUSSION:
On March 16, 2026, the City Council approved a sole-source purchase of Prefabricated Modular housing units to support the development of permanent supportive housing. The project will create sixteen units on City-owned property located at 2040 N. Garey Avenue in Pomona. This approval enables the City to acquire modular units for the rapid delivery of high-quality, sustainable, and cost-effective housing for residents experiencing homelessness.
The next phase is to acquire the services of a general contractor to install the modular units and complete all necessary site improvements. Staff-initiated coordination with ACI to complete installation and necessary site improvements, including foundations, utility connections, parking, accessibility improvements, and related infrastructure for an estimated cost of $2,773,405 (Attachment No. 2 – ACI Proposal).
ACI demonstrates the experience and capacity to successfully deliver complex construction projects similar in scope to the proposed installation and site improvement work. The firm has a proven track record of managing large-scale projects with detailed scopes and complex budgets, and of effectively transitioning projects from design through construction completion.
For projects of this size and complexity, ACI provides comprehensive coordination services to address technical and logistical challenges. The firm has experience working on high-profile projects requiring coordination with private stakeholders as well as public and governmental agencies. ACI is equipped to assign qualified personnel with the necessary experience and communication skills to effectively manage project demands and support successful delivery.
Pursuant to City of Pomona Purchasing Code Section 2-1007 - Alternative cooperative bidding procedure for public works projects. As an alternative to the informal and formal bidding procedure outlined in this Division for public works projects, and as long as the Contracting Officer/Purchasing Officer determines the public works project can be procured using a cooperative purchase agreement (e.g. through Sourcewell/NJPA-National Joint Powers Alliance, General Services Administration -GSA, or other similar agencies) and such agencies have performed public noticing/bidding processes, the Contracting Officer/Purchasing Officer is authorized to utilize such cooperative agreements with the State of California, Counties, other Cities and other governmental agencies and organizations for noticing and bidding public works projects (informal and forma) to save costs by streamlining implementation of public works projects for the City.
ACI is a participant in a cooperative purchasing program administered by Sourcewell, which satisfies competitive bidding requirements (Attachment No. 4 – Sourcewell). The total estimated cost for the purchase and installation of the modular housing units, including site improvements at 2040 N. Garey Avenue, is $5,018,406, which is funded through Tri-City Mental Health and the Series AQ Housing Bond Proceeds.
Staff recommends awarding a construction contract to ACI for the installation of the modular units and related site improvements for the development of permanent supportive housing.
COUNCIL PRIORITIES & GOALS:
This item supports the 2021-2022 City Council Priority 3: Increased Opportunity and Housing Stability – Goal J: Encourage the development and maintenance of quality housing opportunities for all.
Prepared by:
George Montano
Assistant Director
Attachment No. 1 – Resolution No. 2026-34
Attachment No. 2 – ACI Proposal
Attachment No. 3. – Construction Contract
Attachment No. 4. – Sourcewell Contract
Attachment No. 5 – CIP Sheet-PRJ-00004
Award Construction Contract to ACI-Project ID PRJ 00004