City Lays Out Plans For American Rescue Plan Act Funds

Pasadena city staff is recommending $26 million in appropriations from the first half of the American Rescue Plan Act (ARPA) for five local projects.

“The use of ARPA funds is retroactive to March 3, 2021 and all funds must be obligated by December 31, 2024,” according to a city staff report. “A time period covering almost four years is designed to provide prolonged support and recovery with the understanding that the recovery from COVID-19 will take years,” the report states.

“Therefore, building a spending plan is important to maximize impact to the city and community over time,” the report continues.

“The included recommendations to obligate all the funds now to the public health response and revenue reduction categories is intended as an initial step for required quarterly reporting; however, the Council may adjust obligation categories over time to any of the allowable uses.”

According to the report:

$350,000 would be appropriated to the fiscal year 2021 operating budget for the city’s public health response to the COVD-19 pandemic, including staffing and support for contact tracing and vaccination clinics. The fund would support expenditures not supported by grants and are not FEMA eligible.
$250,000 would be appropriated for public health building improvements as part of the fiscal year FY 2022 Capital Improvement Program. The department needs to repurpose the former lab space in the Public Health building to accommodate staff returning to the office. The department does not currently have existing grants or funds to pay for this work and it is an eligible expense under the response to the public health emergency of ARPA.
$475,000 would be appropriated to from the fiscal year 2022 operating budget to rehire three staff members in the Pasadena Convention and Visitors Bureau and implement a tourism recovery stimulus plan to benefit the greater business community, including hotels and restaurants.
$623,000 would be used to offset revenue losses from the support of dining in the public right-of-way. This supports the waiver of all fees related to dining in the public right-of-way for FY 2022. The monies would go to:

a. Sidewalk Dining – $163,000 (General Fund)

b. On-Street Dining – $272,000 (General Fund)

c. Old Pasadena Meter Fund – $184,000

d. South Lake On-Street Meter Fund – $4,000.

$2.6 million would be used to offset all General Fund Operating Budget adjustments approved between March 3, 2021 and June 30, 2021 that negatively impact fund balance.

“It is important to note that all of the current and future appropriation items are based on the interim guidance provided by the U.S. Treasury Department and that guidance is expected to be refined over the coming months,” according to the staff report.

“While staff does not expect the guidance to become more restrictive, there has been a strong push by officials at all levels for less restriction, primarily in the areas of debt service and fiscal reserves. The ability to use funds in either of these categories would provide an immediate financial benefit to the City,” the report states.

Following are items on the consent calendar of the agenda for Monday’s City Council meeting:

Amend the fiscal year 2021 operating budget by $1.5 million to account for unanticipated changes to the adopted budget.
A sweep vote could authorize the city manager to enter into a $91,250 one-year contract with Intelltime Systems Corporation for software maintenance and support for the city’s virtual timecard interface.
The city manager could also receive authorization to enter into a $204,000 contract with McCain Inc. for a traffic signal safety enhancement project.
A resolution authorizing the city manager to execute the certifications and assurances and authorized agent forms required to submit a low carbon transit operations program grant application to Caltrans.
Amendments to the fiscal year 2021 capital improvement program budget allowing the city manager to execute all agreements associated with the receipt of Highway Safety Improvement Program (HSIP) Cycle 10 funds administered through the Caltrans Division of Local Assistance Program, including any program supplement agreements to master agreement between the city of Pasadena and the state of California; and adoption by resolution the Road Repair and Accountability Act (SB1) project list.
A $1.8 million contract award to LDV Inc. for the purchase of a mobile operations center vehicle.
Adoption of the Water and Power Department’s Utility Physical Security Plan. In recognition of the threat to electric distribution facilities and consequential risk of long-term power outages, California legislature enacted Senate Bill 699 (SB 699) in 2014. SB 699 directed the CPUC to adopt rules to identify and address the physical security risks to distribution systems of electrical corporations.
A $2,798,516 contract to Creative Home/DBA Chi Construction for the installation of ductile iron water mains in Arroyo Parkway.
Renewal of the General Service Agreement with Los Angeles County. Since 1977, the city has had a general services agreement with the county of Los Angeles. This “umbrella agreement” is a prerequisite for the provision of services that are provided to the city by the county. In the past, these services have included inspection of bridge construction, material testing, geotechnical investigations, traffic signal and street light maintenance of shared facilities, wet/dry season catch basin cleaning, and other miscellaneous services. The county bills the city for services provided according to rates established annually by the county auditor-controller.
City Manager Steve Mermell could also be authorized to enter into a $4.825 million contract with Toro Enterprises for annual citywide street resurfacing and Americans with Disabilities Act (ADA) improvements programs.
A six-year $1.4 million contract with prudential overall supply to provide city-wide uniform rental services.
A $251,000 payment to Southern California Edison (SCE) for an amount not-to-exceed $251,302 for the emergency replacement of three current transformers on Transformer Bank No. 2 at the T.M. Goodrich Receiving Station.

Two local residents could also be reappointed to local commissions with a sweep vote. District 4 nominee Kevork Keushkerian would return to the Human Relations Commission, and District 7 nominee Jonathan Levy would return to the Environmental Advisory Commission. Both reappointments would be effective July 1.