Half of Houston’s virus aid committed
Most of funding under CARES Act going to public health needs
Houston has spent or committed more than half of the $405 million in COVID-19 relief money it received from the federal government earlier this year — money it has to use by year’s end.
It has often been unclear, even to City Council members and the controller’s office, exactly how much of the money remains in the city’s coffers or when the remainder will be spent. Mayor Sylvester Turner’s administration is planning to begin giving more regular updates about the spending.
City Council approved nearly $15 million in emergency expenditures Wednesday, which include money to hire more temporary medical workers ($7.8 million) and assist Houston artists ($2 million), among other items.
The package brings Houston’s running bill for its federal cash assistance to at least $256 million, although the city has not confirmed or publicly updated that tally recently.
Marvin Odum, the city’s recovery czar who is overseeing the funds, declined to provide a new count or comment for this article, citing a need to update council members first. Turner, asked directly by a council member Wednesday, did not provide a figure but said he would have Odum update the council and public shortly.
Most of the funds used so far have been devoted to direct public
health needs associated with the pandemic. They include setting up and operating testing centers, funding contact tracers and offering relief to struggling residents and businesses. The money was given to the city under the Coronavirus Aid, Relief, and Economic Security, or CARES, Act. It must be spent on items directly related to the pandemic by the end of the year.
In addition to the $15 million approved Wednesday, the council has authorized:
• $81 million in a separate emergency package on July 14; most of that money, about $65 million, went toward testing sites and hiring temporary workers.
• $40 million in additional spending authority to use through regional purchasing associations; it is not clear how much of that money has been spent.
• $45 million to establish rent relief and small-business grant programs.
• At least $56 million was used in the city’s budget to pay for redirected city employees, freeing up space in the cash-strapped general fund.
• $10 million for the Houston Zoo “to address the public health emergency.”
• $8 million toward a contract extension with Tetra Tech, which is helping with administrative efforts such as submitting reimbursement requests to the Federal Emergency Management Agency
• Nearly $1 million in smaller deployments, including for census outreach, solid waste trucks and hazardous materials cleanup at testing sites.
Of that money, the largest contracts have gone to agencies providing temporary workers, including for contact tracing and other medical purposes. The city has spent more than $54 million toward that end, using A-1 Personnel of Houston Inc. ($18.3 million); ExecuTeam L.P. ($9.6 million); and Lane Staffing Inc. ($9.2 million), among others.
Smaller amounts have gone toward hiring contractors to help the city’s heavy trash collection ($3.6 million) and to develop public messaging campaigns ($1.4 million).
That would leave roughly $149 million, though that money is already earmarked for future projects. Odum shared the city’s blueprint for using all $405 million with City Council members in July.
Houston’s plan called for directing the largest chunk of money, $235 million, toward direct public health needs. The redirected city employees (up to $63 million) and relief efforts (initially $30 million) also claimed significant portions of the plan.
Still, that blueprint can change, and it has not always matched exactly with the orders brought before council. For example, the city’s second round of $15 million in rental relief, launched this week, was not included on that list of approved projects. There is also $34 million set aside in the plan for contingency needs.
In his last public update on July 9, Odum said the city focused on public health, vulnerable communities and resiliency when deciding how to allocate the money.
“Hard choices on where to spend the funds had to be made. As always, there’s a lot more need and opportunity than there is money,” Odum said then. “This is a big program, 218 different projects moving very fast.” He said there would be continual reevaluation and reallocation of funds.
Some council members have complained about the scarce input and information they have had as the money rolls out.
Earlier this month, council member Edward Pollard delayed a vote on the $15 million in emergency orders approved Wednesday after he said he was unable to get details about the costs from city staff. During Wednesday’s meeting, council member Amy Peck asked Turner for an update on how much money was spent.
Mayor Pro Tem Dave Martin, chair of the budget committee, said the administration plans to begin giving monthly updates on CARES Act spending.
In July, Odum approached council members during a committee meeting about an ordinance that would have given the chief purchasing officer, Jerry Adams, blanket approval for spending the rest of the money. That request was pulled from the agenda after several council members balked at the request, which they said would cede the little scrutiny they have over the money.
Now, the expenditures generally surface in batches of emergency orders. That means the costs do not go through the longer vetting process of normal city contracts, which can require public bids and give priority to companies that are based in Houston.
The administration says the expedited timeline is necessary to ensure the money is spent by the end of the year and to respond adequately to the pandemic. Adams has told council members they are relying on known vendors for equipment when able. The city is not making payments before it receives the goods or services, Adams said.
At-large council member Sallie Alcorn said she has been trying to reconcile the emergency orders with the blueprint provided in July, and they have not always aligned. Still, she said she is confident the money is being used prudently.
Peck, who represents District A, said she wishes council had more input on how the money was spent.
“I think a lot more money could have gone to first responders, since they are in the middle of dealing with coronavirus every single day,” Peck said.
The Houston Professional Fire Fighters Association on Monday renewed its call for the city to hire an outside company to clean and sanitize fire stations every day. The Fire Department has been beset by staffing shortages amid the pandemic and has lost two firefighters to the virus.
Marty Lancton, the union’s president, called hiring a cleaning company a “no-brainer,” so that overworked firefighters are not tasked with doing the cleaning themselves.
Fire Chief Samuel Peña batted back against Lancton’s claims, saying the city has not spared any expense in cleaning. He said that the department has spent $360,000 in emergency orders on disinfectant supplies and $207,000 on a disinfecting task force and that it still has $623,796 in funds for this fiscal year.
Each fire station has a sprayer and equipment for firefighters to disinfect the building at the beginning of each shift, Peña said. The department’s hazardous materials team is also leading a decontamination effort that reaches every station every five to six days.
The chief said that strategy is more flexible and sustainable than hiring an outside company.
“We haven’t skimped on equipment or training or overtime or anything like that to ensure the disinfecting,” Peña said.