City Council to Revisit Funding Of ‘Great Plates’ Meals Program

The City Council on Monday will debate Pasadena’s continued participation in “Great Plates Delivered,” a state-administered program with the dual aim of providing three meals a day to at-risk seniors during the pandemic while also throwing business to local restaurants hard hit economically by the COVID-19 crisis.

The issue on the table when the council meets via teleconference at 2 p.m. is whether to appropriate an additional $430,865 from the city’s general fund operating reserve to continue the program from Oct. 10 to Nov. 8.

The council is also being asked to consider extending participation on the program for an additional three months beyond that, until Feb. 7 at the maximum – with up-front costs running at about $466,00 per month, according to a report from Brenda E. Harvey-Williams, the city’s director of Parks, Recreation and Community Services.

Pasadena currently has 235 seniors receiving meals from 21 local restaurants, Harvey-Williams’ reports says.

The Great Plates program is administered by the California Office of Emergency Services — but requires a local agency to pay the upfront costs. In Pasadena’s case, that is the Department of Parks, Recreation and Community Services, with money approved by the council.

The city is eligible for reimbursement of up to 93.75 percent of the costs from the Federal Emergency Management Agency (75 percent) and the state (18.75 percent), leaving the city on the hook for just 6.25 percent of program’s total costs.

But full reimbursement is not guaranteed. What’s more, any reimbursement money will likely take a long time (perhaps years) to land in city coffers – a real worry as the city wrestles with its own financial troubles growing out the COVID crisis.

As City Manager Steve Mermell said during the council’s Oct. 5 meeting, “If we were assured of the reimbursement … there would be no question on staff’s mind that we’d recommend continuing to participate, because it does provide an economic benefit to our local restaurants.

“But there’s just a concern that we don’t know how long it will be before we can, a) apply for reimbursement, and b), when we would get that reimbursement and c), whether it will be full reimbursement.’’

Mermell added: “I’m just raising the flag, because the council has been very mindful of fiscal impacts of the pandemic on our budget.”

In addition, according to Harvey-Williams’ report, “The city has exhausted the general fund unassigned fund balance and is projected to draw down its 5 percent general fund operating reserve from $13.8 million to $1.7 million by the end of the current fiscal year. … Based on current economic uncertainties and risks faced by the city, staff recommended that any further draws on reserves be only for the most critical needs as determined by the council.’’

The council has already OK’d three appropriations totaling $1.87 million to Great Plates – $600,000 on May 18; $361,000 on July 27; and $905,200 on Oct. 5, the latter allocation to cover costs from Aug. 10 through Oct. 9.

Council approval of the $430,865 that will be discussed Monday would bring the city’s total outlay for Great Plates to around $2.3 million.

So far, the program has been a life line for local restaurants that, according to Councilmember Andy Wilson, “are under siege” economically during the pandemic.

Indeed, according to Harvey-Williams’ report, “Restaurant owners have expressed their gratitude for Pasadena operating a Great Plates Delivered program and allowing local restaurants to provide the food. ‘’

“Our program has utilized 22 restaurants since operations began on May 21, 2020 (one restaurant has since dropped out and we currently have 21),’’ the report says. “Collectively, these restaurants directly attribute the employment of 110 staff to the Great Plates program. Prior to COVID, these restaurants employed 725. Once COVID restaurant restrictions were enacted, staff levels collectively dropped to 276 employees. Due to Great Plates and the work it generated, the restaurants reported staffing levels increasing to 386 employees.’’

The report goes on to say: “Three of the aforementioned restaurants reported they had completely shut down and the program allowed them to reopen and rehire 15 employees. Several restaurants note that their participation helps them not only keep employees, but also to pay rent. Three other restaurants reported that they would have closed if it had not been for their involvement in this program.’’

Still, continued funding of the program presents a sticky dilemma for the council. At the Oct. 5 council meeting, Mayor Terry Tornek said, “I don’t think we can sustain this burn rate’’ – though he did support the allocation that was approved that day.

Councilmembers Victor Gordo and Margaret McAustin have also expressed cost worries, particularly with numerous alternative food programs available to Pasadena seniors – including an L.A. County version of Great Plates (though that program does not focus on Pasadena restaurants.)

If the council on Monday should pull the plug on funding the program for either the next month or the three months beyond that, participating Pasadena seniors could apply to the county program or any of the other programs available.

Pasadena restaurants could also apply to the county program – but would, according to Harvey-Williams’ report, be wait listed because the county program “has a sufficient number of restaurants to serve the additional seniors from Pasadena.’’

Another option for Pasadena’s Great Plates seniors would be the San Gabriel Valley YWCA Frozen Meal Delivery Program, which currently delivers seven frozen meals per week to approximate 300 local seniors, the staff report says.

Per Harvey-Williams’ report, the council could also consider some kind of compromise on funding, such as providing seniors with two meals a day instead of three, or cutting out weekend deliveries.

But again, a dilemma – as the staff report notes, “This could have an adverse effect on the restaurants as it would decrease the number of meals provided and revenue generated. The result could force restaurants to make the decision of continuing the program or cutting staff.’’

Councilmember Steve Madison, at the Oct. 5 meeting, said he considers the program an economic development matter – and expressed confidence the city will eventually see its outlays reimbursed.

One other possible financial option for the city could come from a $1.22 million allocation from the federal Department of Housing and Urban Development – so-called CDBG-CV funds, under the Coronavirus Aid, Relief, and Economic Security program.

According to Harvey-Williams’ report, “With this special allocation, HUD has provided a total of $2,453,511 in CARES Act funding to the city to support programs in response to the COVlD-19 pandemic.”

“CDBG-CV funds may be used for any activity to prevent, prepare for and respond to COVID-19,’’ the report says. “Currently, CDBG-CV funds are utilized on the city’s Emergency Rental Assistance program, which provides a total of $1 million in back rent assistance to low-income tenants. Staff is recommending in a separate agenda report that this most recent allocation of $1.22 million be prioritized by the city to increase the capacity of local food banks/food pantries to alleviate food insecurity experienced by Pasadena residents as a result of the COVI D-19 pandemic.’’

The CDBG-CV funding will become available in mid-January – and, the report says, “Once the food banks and pantries receive this funding, Feb. 7 could be an opportune time to discontinue Pasadena’s participation in Great Plates Delivered and (have) the seniors transition to one of (the other available) food options.’’

Monday’s council meeting is scheduled to begin at 2 p.m., and will be live streamed at www.pasadenamedia.org and at www.cityofpasadena.net/commissions/agendas.