Council Considers $19 Million in Proposed Covid Relief Programs

Homestead City Council held its regular Committee of the Whole meeting on Tuesday, November 9, 2021. The six-member Council considered distribution of federal monies from the American Rescue Plan Act (“the Act”).

The Act, signed March 11, 2021, was designed to help local governments with Coronavirus recovery using federal money.

Homestead’s share of this funding was determined to be $19,192,087.

Half of that windfall, $9,596,043.50, was received earlier this year but not spent, with one exception.

The remainder is due from the government by May of 2022.

U.S. Treasury issued an interim final rule May 10, 2021 on what types of programs are eligible under the Act. Council and staff discussed possible services at meetings on May 27 and June 8 this year.

Staff listed permissible funding categories as (1) public health and economic impacts, (2) premium pay for eligible workers, (3) general revenue loss, and (4) investments in infrastructure.

Based on Council discussions, suggested program expenditures that met Treasury’s rules were presented as a tentative expenditure plan.

The first category was funded at $10,136,477, premium pay at $823,523, revenue loss recoupment at $1,558,161, and infrastructure at $6,673,926.

The Public health and Economic Impact proposed spending of $10.1 million included commercial assistance of $2 million targeted on small business grants, rental assistance programs, and job fairs and workshops. Another $1.9 million was set for residential mortgage and rental aid including extra utility assistance.

The category continued with housing programs for first time home buyers and affordable housing at $1.5 million. Community violence intervention programs funded at $500,000, vaccination costs of $123,528, non-profit help of $112,949, and public safety programs at $300,000 added to the budget.

Youth assistance programs were slated for $200,000 - $9,000 already spent on a Miami Dade College summer program.

The final portion of this category saw $3.5 million set aside for “improving outdoor space”. It is proposed to spend the money on design and permitting for the Homestead Sports Complex Park, with a stage, track, soccer fields, lighting, lakes, trails, and restrooms.

Estimated costs for Phase 1 of the Sports Complex Park are $7,240,134. Identified grants for park costs total a potential $5 million. The $2.2 million funding gap plus estimated design costs of $1.1 million are to be covered by the $3.5 million from the Act.

Council’s consensus was the budgeted design work cost too much.

The City Manager said the number had been suggested for the presentation and it was expected that work would cost less. Councilmember Larry Roth suggested adding handball courts as an inexpensive alternate feature.

The City Manager asked for direction on putting Phase 1 out to bid for design and permitting without committing, and bringing the result back to Council for a decision.

Ultimately, a motion to that effect passed Council unanimously.

The infrastructure changes allowed in the Act led to a proposed staff budget of $6,673,926 in this category.

The presentation listed broadband access with cybersecurity features budgeted at $1,673,926.

A major project to connect City septic tanks to the sewer system was funded for $2.5 million, with a note that an FDEP grant of $2.2 million for that project was pending.

Water meter replacement in the City was budgeted here for $2.5 million.

Council talked about using money in this category to revise City policy in the Development Services Department.

A discussion earlier this year showed potential computer costs of $1.5 to $2.5 million to revise and computerize City Code features within the Department.

Vice Mayor Julio Guzman said, “There’s a perception that it’s hard to do business with the City. Development Services takes too long and costs too much. Could we set up a task force with a university, set aside time to get it done, and then implement it?”

For Council suggestions on infrastructure, Mayor Steve Losner pointed to recent federal legislation that passed week.

“That will also fund needs here and we expect to get additional federal money through those programs, too,” he said.

The City Manager said it was absolutely clear that premium pay for eligible workers was always a permissible spending category. Staff had proposed funding $2,000 in premium pay with an additional $250 for police officers who were vaccinated.

Premium pay was proposed for three groups, PBA (the police union) lieutenants, other PBA officers, and for the IBEW union representing most other City service employees.

Earlier in the day, both unions (PBA and IBEW) ratified the proposed spending plans, unanimously.

Council spent time discussing the policy of paying a benefit for taking the vaccination.

It appeared to be a consensus that it was preferred to delete that portion of the proposed premium pay. However, the City Attorney determined that delay would require re-ratification of the plans by the unions. The Manager said setting up another vote might delay the program through December.

“I would prefer getting the money into the hands of these workers as soon as possible,” Councilmember Guzman said.

“We’re put in a bad position here,” Mayor Losner said. “There are City employees who didn’t get anything in relief. They didn’t have an extra $1 million in overtime in their Department that already got $1500 each as essential workers. Creating different classes of people who may not get paid for a vaccine is bad policy.”

Council agreed to the originally presented resolutions on premium pay, spending the Act’s money on PBA lieutenants at $14,533, on other PBA officers and correction workers for a total of $293,346, and $639,172 for City workers covered by the IBEW. IBEW field personnel would be eligible for $2,000 each while administrative personnel would get $1,000 each. People working exclusively from home would be ineligible.

The City Manager and City Attorney agreed that payroll taxes and pension sums the City must pay were already included in the totals stated for premium pay.

With unanimous passage of those spending plans, Council has approved spending $9,000 and $947,051 of the federal money so far.

Council turned its attention to a commissioned piece of art for the Cybrarium. Miami-Dade County Code requires a one and one half percent portion of total government construction costs to be spent on art.

Artist Seth Palmiter who answered a Call to Artists was selected for his design of a vast ceiling light sculpture reflecting the light in the Cybrarium. The forty by fifty-six foot piece was termed “significant in scope and value for the dollars”, by the artist.

The City Manager specifically said the $166,000 cost of the piece was coming from the required County art set-aside and not from the City’s public art budget funded by developers.

With City Council’s approval in hand, the artist said installation should occur within six months.

Council also changed purchase limitations under which competitive bidding was waived.

The amounts changed from a range of $25,000/$35,000 to $50,000/$60,000 to combat delays caused by supply chain disruption. The old amounts had not been changed in thirteen years.