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: 2022-00529 March 22, 2022 Consent Item 03
Title: City Council COVID-19 Response: ARPA Framework and Funding Priorities:
American Rescue Plan Act Grant Agreement with the Sacramento Asian-Pacific Chamber of Commerce for the Sacramento Inclusive Economic Development Collaborative Small Business and Commercial Corridor Assistance Program [Published for 10-Day Review 03/10/2022]
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute an ARPA Grant Agreement in an amount not to exceed $2,818,000 with the Sacramento Asian-Pacific Chamber of Commerce for the Sacramento Inclusive Economic Development Collaborative (Sac IEDC) small business and commercial corridor assistance program.
Contact: Mikel Davila, Senior Development Project Manager, 916-808-8506, [email protected]
; Lorrie Lowry, Development Project Manager, 916-808-5448, [email protected]; Denise Malvetti, Interim Deputy Director, 916-808-7064, [email protected], City Manager’s Office of Innovation and Economic Development
Presenter: None
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-American Rescue Plan Grant Agreement with the Sacramento Asian-Pacific Chamber of Commerce
File ID: 2022-00529 Consent Item 03
March 22, 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. This action included a budget allocation of $3.5 million in funding for the Sacramento Inclusive Economic Development Collaborative (Sac IEDC) to assist Sacramento’s commercial districts and small businesses in mitigating the impacts from the pandemic.
The Sac IEDC is a collaborative effort between sixteen partner organizations with the goal of activating their collective resources, trusted relationships, and culturally sensitive approaches to benefit small and micro businesses in Sacramento’s disadvantaged neighborhoods and commercial districts. The partnership includes six chambers of commerce: Sacramento Asian- Pacific Chamber, Sacramento Hispanic Chamber, Sacramento Black Chamber, Slavic American Chamber, North Sacramento Chamber, Metro Chamber; nine Property Based Improvement Districts (PBIDs): Del Paso Partnership, Mack Rd. Partnership, Florin Rd.
Partnership, Stockton Blvd. Partnership, Oak Park Business District, River District, Franklin Blvd. Business District, Power Inn Alliance, and the Greater Broadway District; and Hacker Lab. The Sacramento Asian-Pacific Chamber of Commerce is the lead grantee.
The Sac IEDC’s multipronged approach to supporting and growing small businesses includes an in-depth technical assistance and business support program as well as the development of a small business utilization program. The technical assistance program included in the attached Grant Agreement includes a roster of trusted business case managers that will conduct outreach, engagement and data collection, one-on-one technical assistance consulting from TA Providers available through the chambers, added capacity and training for PBIDs to deliver business services, funding for businesses to implement consultant recommendations, marketing, promotion, advertisements, translation and interpretation services, and education, training and classes. Staff intends to bring the second component of the SacIEDC work, a small business utilization program to help accelerated economic recovery, to Council on April 5th.
Policy Considerations: 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 March 10, 2022, in compliance with the City Code.
File ID: 2022-00529 Consent Item 03
March 22, 2022
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City of Sacramento
Sacramento’s commercial districts and businesses continue to be impacted by the COVID-19 public health emergency. The use of ARPA funds to support the Sac IEDC small business assistance efforts is consistent with City Council’s adopted ARPA Framework and Funding Priorities.
Economic Impacts: The City will use the ARPA reinvestment funds to support the Sacramento Inclusive Economic Development Collaborative in providing direct assistance to businesses that have been impacted by COVID-19. In addition, each partner agency as part of the Collaborative will be strengthened through added capacity and increased service offerings and will be poised to deliver sustained aid into the future.
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)).
Sustainability: Not Applicable.
Commission/Committee Action: Not Applicable.
Rationale for Recommendation: On September 14, 2021 City Council adopted an ARPA Framework and Funding priorities that contained the $3.5M allocation for the Sac IEDC. The 16-partner members of the Sacramento Inclusive Economic Development Collaborative have geographic focus areas in 2021 or 2022 Qualified Census Tracts and will be targeting services to small and micro businesses – those most disproportionately impacted by the COVID-19 pandemic. This investment will provide much needed aid to a sector of our business community that is lagging behind in recovery and growth needed to compete in a post pandemic economy.
Financial Considerations: On October 19, 2021, Council approved Resolution No. 2021- 0313 that allocated $3.5 million for the Sac IEDC. Staff is recommending that the City Council authorize the City Manager or his designee to execute an ARPA Grant Agreement in an amount not to exceed $2,818,000 with the Sacramento Asian-Pacific Chamber of Commerce for business assistance. Sufficient funding is available in the ARPA Reinvestment Fund (Fund 1003) in the Sacramento IEDC MYOP (I02612040) to execute this agreement.
Local Business Enterprise (LBE): Not Applicable.
Attachment 2
ARPA Reinvestment Fund (Fund 1003) $112,313,331
Program Description Approved
Expenditure Category
Aggie Square Job Center 1,000,000 3
Animal Services for the Homeless (ASHR) Response Team 753,230 2 Arts and Cultural Nonprofits 2,250,000 4
Arts Journalism Grant Program 250,000 4
Business Compliance Unit (BCU) Night Team 1,645,637 5
Center for Workers' Rights 550,000 3
Citywide Equity Study 250,000 1
Code Enforcement 205,683 2
Community Response Staffing Expansion 1,025,158 2
Comprehensive Siting Plan - Location Buildout 3,538,400 2 Comprehensive Siting Plan - Property Acquisition 12,783,299 2 Continuation of Existing Homelessness Programming 10,173,567 2 Creative Businesses 1,750,000 4
Creative Economy Focused Youth Workforce Development 1,500,000 4 Downtown Core and Old Sacramento Revitalization 5,000,000 1 Forensiclean Extended Services 1,000,000 2
Gang Prevention and Intervention 1,500,000 3
Homeless and Housing Commitment 8,861,663 2
Illegal Dumping Support 787,000 2
Individual Artists and Creatives 2,750,000 4
Labor Negotiations 9,893,510 5
North Sacramento Code Enforcement and Outreach 450,000 1 Public Records Staffing 4,150,494 5
Public Works Support of Homelessness Programming 572,000 2 Sacramento Inclusive Economic Development Collaborative 3,500,000 1 Sacramento Native American Health Center 100,000 1
Small Business Priorities 8,200,000 1
Substance Use Respite and Engagement Program 1,300,000 2 Tourism Recovery through Iconic Event Production 1,500,000 4 Towing Administration Fee Reform 200,000 1
Vaccine Outreach and Education 1,000,000 1
Youth Pop-Up Program 1,300,000 3
$89,739,641
ARPA Balance $22,573,690
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 18,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 4,350,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 15,689,641
Total 89,739,641$
American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 3/1/2022)