City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00990 June 21, 2022
Title: City Council COVID-19 Response: ARPA Framework and Funding Priorities:
American Rescue Plan Act (ARPA) Grant Agreement with United Way California Capital Region (UWCCR) for expansion of the Direct Investment Program in Sacramento (DIPS) Guaranteed Income (GI) Program
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee to: 1) transfer $750,000 from the available fund balance of the ARPA Reinvestment Fund (Fund 1003) to the ARPA Youth and Workforce Training Project (I02612020); and 2) execute an American Rescue Plan Act Grant Agreement in an amount not to exceed $750,000 with United Way California Capital Region for expansion of the Direct Investment Program in Sacramento (DIPS) Guaranteed Income Program.
Contact: Amy Williamson, Financial Empowerment Manager, 916-808-1046, [email protected]
; Leslie Fritzsche, Community Investment Manager, (916) 808-5450, [email protected], City Manager’s Office of Innovation & Economic Development
Presenter: None
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Resolution
4-Exhibit A, American Rescue Plan Act Grant Agreement with United Way California Capital Region
Description/Analysis
Issue Detail: On September 14, 2021, City Council adopted the Mayor’s proposed ARPA Framework and Funding Priorities and directed the City Manager, City Attorney, City Auditor, City Treasurer, and City Clerk to implement City Council direction consistent with the adopted ARPA Framework. This Framework included a $750,000 line item to expand the Guaranteed Income (GI) pilot program launched in 2021 and managed by United Way California Capital Region. This allocation is consistent with federal ARPA guidance for responding to the negative economic impacts of the COVID-19 public health emergency by providing assistance to impacted households, in particular under Expenditure Category 2: Negative Economic Impacts: Assistance to Households: Cash Transfers (U.S. Department of Treasury Compliance and Reporting Guidance, State and Local Fiscal Recovery Funds).
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 million 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.
UWCCR launched the DIPS GI program in June 2021 under a model that has been providing 100 households in Sacramento County with $300 of unconditional income every month for 24 months. Under the here-proposed expansion, an additional 80 households will receive up to $500 of unconditional income every month for 12 months. Income eligibility for new participating households will be within the bounds allowed by federal ARPA guidance, as specified in the attached agreement.
In addition to governing the implementation of this DIPS expansion, this Agreement contains provisions for UWCCR to contract with California State University, Sacramento (CSUS) for evaluation of the Program.
Policy Considerations: Sacramento’s low-to-moderate-income households continue to be particularly impacted by the COVID-19 public health emergency. The use of ARPA funds to support the growth of local GI programs is consistent with both City Council’s adopted ARPA Framework and Funding Priorities and with ARPA guidelines.
Economic Impacts: In keeping with UWCCR’s experience in its first phase of DIPS, as well as research done on other GI programs in California and across the U.S., it is anticipated that economic impacts will include: 1) Increased rates of participants working one stable full-time job and experiencing decreased income volatility; 2) Doubling the percentage of participants capable of spending cash or cash equivalent for an unexpected $400 expense; 3) Increased ability to meet their own self-defined personal finance goals due to receipt of GI payments.
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: None.
Rationale for Recommendation: On September 14, 2021, City Council adopted the ARPA Framework and Funding Priorities and directed the City Manager, City Attorney, City Auditor, City Treasurer, and City Clerk to implement City Council direction consistent with the adopted ARPA Framework. This Framework included a $750,000 line item to expand the City’s GI pilot program that is managed by United Way California Capital Region. Staff will work closely with UWCCR representatives to ensure effective implementation of the expansion.
Financial Considerations: Sufficient funding is available in the ARPA Reinvestment Fund (Fund 1003) available fund balance to transfer $750,000 to the ARPA Youth and Workforce Training Project (I02612020). This transfer will allow for the execution of this ARPA Grant Agreement with UWCCR in the amount of $750,000.
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
Al Fresco Dining Program Development 200,000 1
Animal Services for the Homeless (ASHR) Response Team 753,230 2 ARPA Grant Liaison Consulting Services 530,490 5
Arts and Cultural Nonprofits 2,250,000 4
Arts Journalism Grant Program 250,000 4
Business Compliance Unit (BCU) Night Team 1,656,101 5
Center for Workers' Rights 550,000 3
Citywide Equity Study 250,000 1
Code Enforcement 205,683 2
Community Response Staffing Expansion 1,025,157 2
Comprehensive Siting Plan - Location Buildout 3,634,400 2 Comprehensive Siting Plan - Meadowview Acres Tree Removal 224,999 5 Comprehensive Siting Plan - Property Acquisition 12,783,299 2 Continuation of Existing Homelessness Programming 7,933,277 2 COPS Hiring Program Grant Matching Funds 4,057,327 5
Creative Businesses 1,750,000 4
Creative Economy Focused Youth Workforce Development 1,500,000 4 Downtown Core and Old Sacramento Revitalization 3,875,000 1 Forensiclean Extended Services 1,000,000 2
Gang Prevention and Intervention 1,500,000 3
Homeless and Housing Commitment 8,765,664 2
Illegal Dumping Support 787,000 2
Individual Artists and Creatives 2,750,000 4
K Street Lighting 619,150 1
Labor Negotiations 9,893,510 5
Lighting and Safety Enhancement 1,125,000 1
North Sacramento Code Enforcement and Outreach 450,000 1 Public Records Staffing 3,639,334 5
Public Works Support of Homelessness Programming 572,000 2 Respite Centers Program 2,240,290 2
Sacramento Inclusive Economic Development Collaborative 3,500,000 1 Sacramento Native American Health Center 100,000 1
Small Business Priorities 7,380,850 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
Workforce Training Programs 2,750,000 3
American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 6/14/2022)
Attachment 2
Program Description Approved
Expenditure Category
Youth Pop-Up Program 1,300,000 3
$96,801,761
ARPA Balance $15,511,570
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 18,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 7,100,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,001,761
Total 96,801,761$
RESOLUTION NO. 2022-
Adopted by the Sacramento City Council
ARPA Framework and Funding Priorities: Workforce Framework and Spending Plan
BACKGROUND
A. On March 4, 2020, Governor Newsom proclaimed a State of Emergency as a result of the threat of the coronavirus disease (COVID-19) in the State of California.
B. On March 5, 2020, the County of Sacramento proclaimed a public health emergency as a result of the threat of COVID-19 (pandemic) in the county.
C. On March 13, 2020, the City Council adopted a resolution declaring a local emergency relating to the pandemic.
D. On March 11, 2021, the American Rescue Plan Act of 2021 (ARPA) was signed into law making available $350 billion through the State and Local Fiscal Recovery Funds (SLFRF) to assist states, tribal governments, and local governments with the reopening and recovery from the adverse health and economic impacts caused by COVID-19. The City of Sacramento became eligible for $112.2 million.
E. On August 24, 2021, the City Council held a workshop to discuss the Mayor’s proposed ARPA Framework and Funding Priorities. During the workshop, the City Council and stakeholders expressed overall interest in funding programs and projects in the following areas: Small Business and Commercial Corridor Revitalization; Homeless and Housing; Youth, Workforce Training and Gang Prevention; Arts and the Creative Economy; and Valuing City Employees and Addressing Organizational Needs.
F. On September 14, 2021, City Council adopted the Mayor’s proposed ARPA Framework and Funding Priorities and directed the City Manager, City Attorney, City Auditor, City Treasurer, and City Clerk to implement City Council direction consistent with the adopted ARPA Framework. The adopted Framework and Funding Priorities included an allocation of $750,000 to expand the guaranteed income pilot program managed by United Way California Capital Region.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND AND STAFF REPORT, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or the City Manager’s designee is authorized to transfer $750,000 from the available fund balance of the ARPA Reinvestment Fund (Fund 1003) to the expenditure budget of the ARPA Youth and Workforce Training Project (I02612020).
Section 2. The City Manager or the City Manager’s designee is authorized to execute the American Rescue Plan Act Grant Agreement in an amount not to exceed $750,000 with United Way California Capital Region for expansion of the Direct Investment Program in Sacramento (DIPS) Guaranteed Income Program attached as Exhibit A.
Section 3. Exhibit A is part of this resolution.
Table of Contents:
Exhibit A: American Rescue Plan Act Grant Agreement