Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01430 January 11, 2022 Consent Item 06
Title: City Council COVID-19 Response: ARPA Framework and Funding Priorities:
American Rescue Plan Act Grant Agreement with Downtown Sacramento Partnership, Inc. for Small Business Priorities [Published for 10-Day Review 12/30/2021]
Location: District 4
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute an American Rescue Plan Act Grant Agreement with the Downtown Sacramento Partnership, Inc. in the amount of $1,150,000 for small business priorities.
Contact: Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, [email protected]
; Valerie Mamone-Werder, Development Project Manager,
(916) 808-5451, [email protected], Office of Innovation and Economic Development
Presenter: None
Attachments:
1-Description/Analysis
2-Grant Agreement
File ID: 2022-01430 Consent Item 06
January 11, 2022
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City of Sacramento
Description/Analysis
Issue Detail: On October 19, 2021, City Council adopted Resolution No. 2021-0313, which authorized the City Manager or City Manager’s designee to accept $112.2 million of American Rescue Plan Act of 2021 (ARPA) funding; establish the ARPA Reinvestment Fund (Fund 1003); and allocate $112.2 of ARPA funds to provide government services and budget the resulting available resources in the ARPA Reinvestment Fund to assist with the recovery and reopening resulting from the impacts of COVID-19, including $8.2 million in funding for small business priorities to assist in mitigating the impacts from the pandemic. This allocation focused significantly on “clean and safe” activities and related improvements.
To facilitate implementation, staff recommends that the City Manager execute the attached ARPA grant agreement (Attachment 2) with the Downtown Sacramento Partnership for $1,150,000 to undertake additional cleaning and maintenance, provide enhanced security, install lighting enhancements, and provide mobile analytics in the J, K, and L Street corridors between 7th and 13th Street in qualified census tract 11.01 in downtown. Additional lighting improvements will be completed by the Public Works staff with the collective goal of making the corridors welcoming, safe and conducive to economic activity.
Policy Considerations: The City continues to be impacted by the COVID-19 public health emergency. The use of ARPA Reinvestment funds for the J, K, and L Street clean and safe activities is consistent with Council direction provided by Resolution No. 2021-0313 and consistent with City Council’s adopted ARPA Framework and Funding Priorities.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to Council action. This item was published for 10-day review on December 30, 2021, in compliance with the City Code.
The recommendations contained in this report are consistent with 3.64.020 Authorization of agreements by city council., which requires City Council approval to execute contracts $250,000 or more.
Economic Impacts: The City will use the ARPA reinvestment funds to provide assistance to residents and business that have been impacted by COVID-19. These funds will support people, places, and actions that promote overall economic recovery and result in impacts immediately and well beyond the pandemic.
File ID: 2022-01430 Consent Item 06
January 11, 2022
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City of Sacramento
Environmental Considerations:
California Environmental Quality Act (CEQA): The proposed actions are not a project under CEQA because they relate to government fiscal activities that do not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment. (Cal. Code Regs., tit. 14, §§15060(c)(3), 15378(b)(4)). Even if any of the proposed actions are a project, they are not subject to CEQA because it can be seen with certainty that there is no possibility that any of them may have a significant impact on the environment (Cal. Code Regs., tit. 14, §15061(b)(3)).
Sustainability: Not Applicable
Commission/Committee Action: Not Applicable
Rationale for Recommendation: Granting the ARPA funds to facilitate clean and safe activities in the downtown will allow the City to support residents, businesses, and community partners that have been impacted by COVID-19. These activities and the recommended funding will be utilized over a multi-year period to assist in downtown’s business recovery from the pandemic.
Financial Considerations: Resolution 2021-0313 allocated $8.2 million for Small Business Priorities. Sufficient funding is available in the ARPA Small Business Support Multi-Year Operating Budget, I02612000 (Fund 1003) to execute the agreement with Downtown Sacramento Partnership, Inc. in an amount not to exceed $1,150,000.
Local Business Enterprise (LBE): Not applicable.
American Rescue Plan Act Grant for Clean and Safe Improvements in the Central Business District Agreement
This AMERICAN RESCUE PLAN ACT GRANT FOR CLEAN AND SAFE IMPROVEMENTS IN THE CENTRAL BUSINESS DISTRICT AGREEMENT, dated January 11, 2022� for purposes of identification, is between the CITY OF SACRAMENTO, a California municipal corporation (the "City"), and Downtown Sacramento Partnership, Inc.,� California non-profit corporation ! (the "Grantee").
Background
In response to the world-wide spread of the respiratory illness coronavirus disease 2019 (COVID-19), the Federal Health and Human Services Secretary declared a national public health emergency in the United States on January 31, 2020; Governor Gavin Newsom proclaimed a state of emergency in the State of California on March 4, 2020; the County of Sacramento proclaimed a public health emergency on March 5, 2020; the City Council declared it a local emergency on March 13, 2020; and on that same day, the President of the United States declared a national emergency.
On March 19, 2020, Governor Newsom issued Executive Order N-33-20, which ordered all California residents to stay home or at their place of residence except as needed to maintain operations of certain federal critical infrastructure sectors. That same day, the Public Health Officer of the County of Sacramento issued a similar stay-at-home order which made exceptions only to do essential activities, conduct essential government functions, and operate essential businesses. On June 15, 2021, the State moved forward with re-opening the economy and began the process of winding down many of the Executive Orders put in place since the beginning of the pandemic. Since that time, COVID-19 cases have increased substantially.
Prior to the reopening of the State, the federal American Rescue Plan Act of 2021 ("ARPA") was signed into law on March 11, 2021. The ARPA builds upon previously enacted aid measures such as the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). Under the ARPA, the City of Sacramento will receive approximately $112 million from the "Coronavirus Local Fiscal Recovery Fund" ($56 million in May 2021 and $56 million anticipated in May 2022) directly from the federal Department of the Treasury. The Assistance Listing Number assigned to ARPA funds is 21.027.
The ARPA provides that payments from the Coronavirus Local Fiscal Recovery Fund may only be used: "(a) To respond to the public health emergency [with respect to the Coronavirus Disease 2019 (COVID-19)] or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality; (b) To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers; (c) For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the 1 Rev. 12-20-2021