Economic Development, Placemaking and
Branding/Marketing
Committee
TO: ECONOMIC DEVELOPMENT, PLACEMAKING DATE: JULY 20, 2023
AND BRANDING/MARKETING COMMITTEE
WARDS: ALL
FROM: COMMUNITY & ECONOMIC DEVELOPMENT
SUBJECT: AMERICAN RESCUE PLAN ACT SUBRECIPIENT AGREEMENT WITH INLAND SOUTHERN CALIFORNIA 211+, dba COMMUNITY CONNECT, FOR $779,948.05 OF AMERICAN RESCUE PLAN ACT FUNDS TO ADMINISTER A CITY OF RIVERSIDE SMALL AND MICRO-BUSINESS COVID RECOVERY GRANT PROGRAM.
ISSUE:
Review and consideration of the proposed American Rescue Plan Act Subrecipient Agreement with Inland Southern California 211+, dba Community Connect, for $779,948.05 of American Rescue Plan Act Funds to administer a City of Riverside small and micro-business COVID recovery grant program.
RECOMMENDATIONS:
That the Economic Development, Placemaking and Branding/Marketing Committee:
Review and consider the proposed American Rescue Plan Act Subrecipient Professional Consultant Services Agreement with Community Connect for $779,948.05 of American Rescue Plan Act Funds to administer a City of Riverside small and micro-business COVID recovery grant program; and Direct staff to execute the American Rescue Plan Act Subrecipient Professional Consultant Services Agreement with Community Connect for $779,948.05 of American Rescue Plan Act Funds to administer a City of Riverside small and micro-enterprise COVID recovery grant program and proceed to City Council for approval.
LEGISLATIVE HISTORY:
On March 11, 2021, President Biden signed into law the American Rescue Plan Act to facilitate the recovery from the devastating economic and health effects of the COVID-19 pandemic. The American Rescue Plan Act (ARPA) established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund, which provides a combined $350 billion in assistance to eligible state, local, territorial, and Tribal governments to assist in the economic and health recovery by providing resources to address impacts resulting from the crisis.
BACKGROUND:
ARPA established the Coronavirus Local Fiscal Recovery Fund to provide resources to support communities that are struggling with the impacts of COVID-19. These funds may be used for pandemic response needs including mitigation and prevention, support to communities and populations most impacted by the COVID-19 crisis, and to fill revenue shortfalls. The US Department of the Treasury first released the Interim Final Rule providing eligibility guidance as well as regularly updated Frequently Asked Questions (FAQ). The Interim Final Rule served to help communities develop proposals for funding.
On November 9, 2021, the City Council approved the first allocation of the ARPA funding Expenditure Category Plan in the amount of $36,767,594 following the Interim Final Rule guidelines, which included an allocation of $6,000,000.00 for the development and administration of a local small and micro-business grant. The Final Rule was issued on January 6, 2022 and became effective on April 1, 2022.
DISCUSSION:
One of the City of Riverside’s great economic strengths is its diverse small business community. Pre-pandemic data indicates that small and micro-enterprises comprise nearly 70% of Riverside’s business community and account for over 32% of local employment. In addition, Riverside is the most populous city in Inland Southern California, the region which has the largest number of family-owned businesses in the country. This is an indicator that small business owners are also often residents. Many Riverside retail, restaurants, tourism, personal, and professional services, including home business operations, were greatly affected by the pandemic.
The goal of the Riverside Small and Micro-Business Grant is to infuse needed recovery and long-term resiliency capital into the most impacted business sectors, targeting disadvantaged and underserved communities with funding and support services to ensure an equitable recovery from the COVID-19 pandemic and overall greater business resiliency in the face of future economic downturns. Individual grants may be up to $10,000. Program elements, such as eligibility criteria and required documentation will be finalized once the program administrator is engaged.
On October 3, 2022, Request for Proposal (RFP) No. 2193 was posted on the City’s Online Bid System and closed on October 27, 2022. The RFP sought a qualified and experienced organization to serve as the grant program administer for the duration of the program. The scope of services includes advising on the details of final program development in compliance with all requirements of the Department of Treasury Final Rule, managing a multi-faceted marketing effort in coordination with the City and local partners, daily program coordination and management, and regularly providing all required reporting.
A total of 28 prospective bidders registered for the opportunity. As a result of this solicitation, the City received two proposals which were deemed responsive. To evaluate the proposals, an RFP evaluation committee comprised of Community & Economic Development Divisions of Economic Development, Arts & Culture, and Neighborhood Engagement, as well as a representative from the Police Department, was formed. The two proposals were evaluated based on the following criteria: firm experience and capacity, project understanding, approach and methodology, cost, and proposed schedule.
After careful review and scoring, the RFP evaluation committee concluded that the Community Connect proposal is the most qualified submittal to RFP No. 2193. Although not the lower priced of the two submissions, negotiations resulted in a 10% ($95,000) price reduction. The Community Connect proposal scored higher based on the following considerations:
Firm Experience and Capacity: The proposal included a more substantial number of positive references and detailed testimonials from satisfied previous customers with similar projects than the competing proposal. It also demonstrated a variety of relevant local partnerships and over 30 years of local and regional experience. Additionally, the Community Connect proposal scored well because of more robust local staffing and commitments to provide a cross-training plan, multi-lingual communication, and a commitment to be physically available to applicants.
Marketing: The proposal includes an extensive, multi-faceted, and multi-lingual marketing plan, including digital, print, radio, newspaper, social media, website, attendance at small business events, and door-to-door outreach as needed, with a focus on connecting with underserved communities. Once again, the Community Connect proposal stood out for its ability to provide a local connection with a strong hands-on component to its marketing plan.
Understanding, Approach and Methodology: The proposal demonstrates a clear understanding of the Riverside business community and the time and resources required to meet the scope of services. It details a hands-on, personalized approach to customer service with multiple touch-point options throughout the process including in-person and virtual options as well as the ability to leverage the support of multiple community partners. The proposal approach includes a detailed plan for equitable and accessible participation utilizing neighborhood demographic data to identify underserved communities and strategic design of the targeted marketing and outreach plan. Community Connect demonstrated a clear understanding of staff’s expectations for finalizing the business qualifications and appropriate supporting documentation according to ARPA requirements.
The professional consultant services agreement in the amount of $779,948.05 would result in $5,220,051.95 being available for the City of Riverside small and micro-business COVID recovery grant program.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 3 – Economic Opportunity, and Goal 3.4 – Collaborate with key partners to implement policies and programs that promote local business growth and ensure equitable opportunities for all.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – The local business community will be engaged through an extensive multi-lingual and multi-faceted marketing campaign and have access to in-person and virtual program support to ensure consistent and accessible communication.
Equity – The Small and Micro-Enterprise Grant infuses needed recovery and long-term resiliency capital into the most impacted business sectors, targeting disadvantaged and underserved communities with funding and support services to ensure equitable economic opportunity.
Fiscal Responsibility – Use of ARPA funds to promote local business growth and resiliency generates long-term economic benefits through increased tax revenue to provide City services. Competitive procurement was used to equitably secure the best quality and cost for the City.
Innovation – The City of Riverside Small and Micro-Enterprise Grant Program leverages local and regional partnerships to improve success and offers multi-lingual virtual, online, and in person options for application processing. This includes the Community Connect Application Management Portal which allows 24/7 access to view application status and communicate with the program management team, creating convenience and accessibility for local businesses.
Sustainability & Resiliency – Providing Small and Micro-business grant funding to local businesses supports equitable economic opportunity, recovery and overall greater business resiliency in the face of future economic downturns.
FISCAL IMPACT:
The total fiscal impact of the action is $779,948.05. Sufficient funds are budgeted and available in the Grants and Restricted Programs Fund, Federal Operating Grants account 8810200-440110.
Prepared by: Jennifer A. Lilley, Community & Economic Development Director Certified as to
availability of funds: Edward Enriquez, Assistant City Manager/Chief Financial Officer Approved by: Rafael Guzman, Assistant City Manager Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Presentation
Professional Services Agreement
Community Connect ARPA Rescue Plan Agreement -Page 2