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: 2021-01460 January 11, 2022 Consent Item 07
Title: City Council COVID-19 Response: ARPA Framework and Funding Priorities:
American Rescue Plan Act Grant Agreement with Downtown Sacramento Partnership, Inc. for Old Sacramento Waterfront Improvements
Location: Old Sacramento Waterfront, 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 $800,000 for Old Sacramento Waterfront Improvements.
Contact: Ellen Sullivan, Development Project Manager, (916) 808-5758, [email protected]
, Office of Innovation and Economic Development; Leslie Fritzsche, Community Investment Manager, (916) 808-5450, [email protected], Office of Innovation and Economic Development
Presenter: None
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Grant Agreement with Downtown Sacramento Partnership, Inc.
File ID: 2021-01460 Consent Item 07
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 $5 million in funding for Old Sacramento Waterfront Improvements.
To facilitate the implementation of these Old Sacramento Waterfront improvements, staff recommends that the City Council authorize the City Manager or his designee to execute the attached ARPA grant agreement (Attachment 3) with Downtown Sacramento Partnership, Inc. $800,000 for pedestrian scale lighting, security services, and other enhancement projects in qualified census tract 7.00 in the Old Sacramento Waterfront. This grant will assist the Old Sacramento Waterfront, a tourist destination, in recovering from the negative economic impacts stemming from the COVID-19 public health emergency. Aid to impacted industries such as tourism, travel, and hospitality is an eligible activity under ARPA.
The $4.2 million balance of the Old Sacramento funding authorized by Council in Resolution No. 2021-0313 will be utilized for lighting improvements and security cameras and will be implemented by City staff.
Policy Considerations: The City continues to be impacted by the global pandemic. The use of ARPA funds for the Old Sacramento Waterfront improvements is consistent with Council direction and consistent with City Council’s adopted ARPA Framework and Funding Priorities.
Economic Impacts: The City will use the ARPA reinvestment funds to provide assistance to residents and businesses in the Old Sacramento Waterfront impacted by COVID-19. These funds will mitigate the economic harms and speed the recovery of the tourism, travel and hospitality industries within the Old Sacramento Waterfront.
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 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,
File ID: 2021-01460 Consent Item 07
January 11, 2022
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City of Sacramento
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)).
The improvements described in this report would be exempt from CEQA because they are minor alterations to existing facilities. (Cal. Code Regs., tit. 14, §15301).
Sustainability: Not Applicable
Commission/Committee Action: Not Applicable
Rationale for Recommendation: Granting the ARPA funds to facilitate improvements in the Old Sacramento Waterfront will allow for the City to support residents, businesses, and community partners that have been impacted by COVID-19. The Sacramento Waterfront is one of the City’s major tourist attractions and assisting the tourism industry is one of the eligible uses of ARPA funding.
Financial Considerations: Resolution No. 2021-0313 allocated $5 million for Downtown Core and Old Sacramento Revitalization. Sufficient funding is available in the ARPA Old Sacramento Improvements MYOP (I02612030) to execute the agreement with Downtown Sacramento Partnership, Inc. in an amount not to exceed $800,000 (ARPA Reinvestment Fund, Fund 1003).
Local Business Enterprise (LBE): Not applicable.
Background: Old Sacramento has long been a priority for the City and requires additional investment to ensure a safe and quality visitor experience as a result of the negative impacts of the COVID-19 public health emergency. Utilizing $5 million, staff from Public Works, the Office of Innovation and Economic Development, Convention and Cultural Services, and Police have been working with the Downtown Sacramento Partnership and local merchants on a list of improvements, including lighting, security, and other projects, to enhance the Old Sacramento environment and aid tourism and hospitality efforts in the area.
Attachment 2
ARPA Reinvestment Fund (Fund 1003) $112,313,331
Program Description Approved
Expenditure Category
Aggie Square Job Center 1,000,000 3
Animal Care Community Response 2,395,375 2
Business Compliance Outreach 1,654,393 5
Center for Workers' Rights 550,000 3
Comprehensive Siting Plan 21,020,499 2
Downtown Core and Old Sacramento Revitalization 5,000,000 1 Forensiclean Extended Services 3,000,000 2
Gang Prevention and Intervention 1,500,000 3
Homeless and Housing Commitment 13,284,126 2
Public Records Staffing 4,174,042 5
Sacramento Inclusive Economic Development Collaborative 3,500,000 1 Small Business Priorities 8,200,000 1
Substance Use Respite and Engagement Program 1,300,000 2 Vaccine Outreach and Education 1,000,000 1
$67,578,435
ARPA Balance $44,734,896
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 17,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 3,050,000 Arts, Creative Economy, and Tourism 4 -
Citywide Organizational Needs 5 5,828,435
Total 67,578,435$
American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 12/14/2021)