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Staff Report - City Council COVID-19 Response ARPA Framework and Funding Priorities

Sacramento City Council
June 28, 2022

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Staff Report - City Council COVID-19 Response ARPA Framework and Funding Priorities
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June 28, 2022
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Sacramento City Council
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City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org

File ID: 2022-01146 June 28, 2022

Title: City Council COVID-19 Response: ARPA Framework and Funding Priorities:

Budget Allocation for the ARPA Food Security Initiatives

Location: Citywide

Recommendation: Adopt a Resolution: 1) establishing the ARPA Food Security Initiatives Project (I02612070) as a new Multi-Year Operating Project; and 2) authorizing the City Manager or the City Manager’s designee to transfer $1,500,000 from the available fund balance of the ARPA Reinvestment Fund (Fund 1003) to the expenditure budget of the ARPA Food Security Initiatives Project (I02612070).

Contact: Denise Malvetti, Deputy Director, (916) 808-7064, [email protected], Ginger Weagraff, Development Project Manager, (916) 808-1222, [email protected]; City Manager’s Office of Innovation and Economic

Presenter: None

Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Food Justice Task Force June 9, 2022 Presentation
4-Resolution

Description/Analysis

Issue Detail: On September 14, 2021, the City Council adopted the American Rescue Plan Act of 2021 Framework and Funding Priorities (ARPA Framework). The ARPA Framework included funding allocations 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.

On October 19, 2021, the City Council adopted Resolution No. 2021-0313, which authorized the City Manager or the City Manager’s designee to accept $112.2 million of 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 recovery and reopening efforts.

Among the priorities identified in the ARPA Framework was a $1.5 million investment in food security initiatives. Specifically, the ARPA Framework allocated:

• $1 million to support the Food Justice Task Force—Established in August 2021 by Mayor Steinberg and Councilmember Vang, the Food Justice Task Force serves as an advisory body to the City by making recommendations on local food system policy and funding investments. The goal of the Task Force is to ensure there is sufficient, healthy, and accessible food for all by building a more robust and resilient food economy. The pandemic has only underscored the importance of such a goal. As such, a key priority identified by the Task Force for the ARPA funding will be to assist vulnerable communities recover in an equitable manner by improving access points to healthy and culturally diverse foods as well as investing in the local food system.

• $500,000 to support local food bank providers—Since the onset of the pandemic, the demand for food has increased significantly and remained high. In April 2022, Sacramento Food Bank and Family Services (SFBFS) and its partner network served over 213,570 individuals, which marks a 42 percent increase from pre-pandemic numbers. Further exacerbating the current need are higher food prices caused by rising inflation and supply chain disruptions. With so many individuals unable to meet their basic food needs, a program to support local food bank providers is necessary.

Therefore, the actions recommended in this report seek to obtain budgetary authority to formalize both food security appropriations.

At this time, staff is not taking further action on the $1 million Food Justice Task Force appropriation because staff is currently working in partnership with the offices of Mayor Steinberg and Councilmember Vang to design an ARPA Food Justice grant program and develop a Notice of Funding Availability (NOFA). To help inform the NOFA, staff sought Task Force input on a draft framework for the grant program during their June 9, 2022 meeting (see Attachment 3 for the presentation).

For the $500,000 food bank appropriation, staff will return to Council on July 19, 2022 to seek approval of a grant agreement with SFBFS. SFBFS is uniquely positioned to maximize both the amount and the efficiency of food distributed. As a Feeding America Partner Distribution Organization, SFBFS will combine donations received from Feeding America with items purchased in bulk to significantly increase the amount of food distributed. In terms of efficiency, SFBFS will leverage its existing partner network to distribute food to dozens of smaller food banks, local shelters, and community-based organizations within the City. In total, SFBFS estimates the grant will enable them to purchase approximately 371,900 pounds of food, which equates to approximately 310,000 meals according to Feeding America standards.

Policy Considerations: The use of ARPA Reinvestment Funds to support food security is consistent with both the adopted ARPA Framework and Resolution No. 2021-0313.

Economic Impacts: Both food security initiatives will aid economic recovery efforts by helping community members meet their basic food needs.

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: Staff recommends approval of the proposed actions because the pandemic has incited a spike in food insecurity.

Financial Considerations: There is sufficient funding in the available fund balance of the ARPA Reinvestment Fund (Fund 1003) to support the establishment of the ARPA Food Security Initiatives Project (I02612070).

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 Direct Investment Program 750,000 3
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
American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 6/21/2022)
Attachment 2
Program Description Approved
Expenditure Category
Workforce Training Programs 2,750,000 3
Youth Pop-Up Program 1,300,000 3
$97,551,761
ARPA Balance $14,761,570
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 18,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 7,850,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,001,761
Total 97,551,761$

Land Acknowledgement
To the original people of this land. The Nisenan people, The Southern Maidu, Valley and Plains Miwok, Patwin Wintun peoples, and the people of the Wilton Rancheria, Sacramento’s only Federally recognized Tribe.

May we acknowledge and honor the Native people who came before us and still walk beside us today on these ancestral lands by choosing to gather together today in the active practice of acknowledgement and appreciation for Sacramento’s Indigenous People’s history, contributions, and lives.

AGENDA

OUTLINE
 Welcome & Introductions
 Land Acknowledgement
 Community Agreements
 Food Justice Taskforce
 Review Last Meeting
 ARPA Food Justice Grant Program
 Community Discussion
 Next Steps

COMMUNITY AGREEMENTS
 Be kind and respectful
 Speak from first person, based on your experience
 Step-Up and speak up & Step-Back and allow others to share  Be solution-oriented, offer constructive ideas
 Focus on solutions and our collective future to create a more resilient and equitable food system.

Are there others you would like to add?

SHORT-TERM
NEXT 3-6 MONTHS
Provide direction for funding priorities for the 1 million ARPA dollars. Some examples for ARPA funding may include:
 Expanding access points in low-income neighborhoods to healthy food through Farmers Markets, Mobile Farmer Stands & Urban Farms & Community Gardens
 Supporting capacity of community organizations to assist with Food & Meals Distribution  Expanding food literacy and education efforts for Healthy Eating among Youth, Seniors & Families  Training the next generation for careers in Food & Ag through Urban Ag Pathways Programs  Assistance with technical support to small BIPOC farmers, food entrepreneurs and restaurant businesses.

MID-TERM
6 MONTHS – 1 YEAR
Coordinate a series of taskforce meetings to prioritize key areas for policy recommendations in our local food system. Some examples may include:
 Revising the Urban Agriculture Ordinance
 Establishing city policies to increase number of community gardens  Aligning policies to state, county, and city requirements.  Community Benefits Ordinance: Outline a formal process for private developers to work with community coalitions to ensure development projects meet community needs, including providing space for independent restaurants, commercial kitchen space, and diverse food retailers.

LONG-TERM
NEXT 1- 3 YEARS
 Serve as theadvising committee on food policy and funding investments in the City of Sacramento.  Food Justice Taskforce will work closely with Mayor's Office, CM Vang's Office & city staff to advise:
 Policy Recommendations
 Funding Investments

LAST MEETING
Conducted small breakout groups to discuss the following:
 Data indicators/factors that should be considered in guiding our framework for ARPAfunding  Two top priorities for ARPA funding:
 Increasing Access Points to Healthy Food
 Investing in our Local Food System Economy
 Funding disbursement

ARPA Food
Justice
Grant
Program
ARPA Food Justice Grant Program
 The following slides contain a proposed framework for the ARPA Food Justice Grant Program  All contents are in draft form and subject to change
 Based on the input received today, staff will create a final framework to inform a Notice of Funding Availability (NOFA)
ARPA Food Justice Grant Program
Proposed Eligibility Requirements
 Non-profit community-based organization or small business operating within City limits Proposed Grant Amount Parameters
 Tier 1 = Micro Grants
 Maximum request = $5,000
 Maximum number of awards = 20
 Tier 2 = Large Grants
 Maximum request = $200,000
ARPA Food Justice Grant Program
Proposed Authorized Activity Categories

1. Services and programs—evidence-based services or programs proven to increase access points to healthy food

2. Fixed assets and equipment—capitalinvestments needed to improve food access service provision

3. Operational support—support needed to offset operational expenses for organizations that provide access to healthy foods

4. Capacity building and technical assistance—support needed to increasecapacity for organizations that provide access to healthy foods
ARPA Food Justice Grant Program
Proposed Reporting Requirements
 Must serve high need areas and underserved populations (ex: unhoused neighbors, etc.)  Must address the following questions:

1. What are the racial and economic equity impacts of this proposal on healthy food access?

2. How will this funding prioritize the people and communities who need it the most and are already marginalized (lower income, disabled, unhoused, communities of color, etc.)?

3. What are the success indicators and progress benchmarks to ensure service will be in high need areas?

ARPA Food Justice Grant Timeline
Tentative Timeline
 June 28th - Council to formally establish budget on consent  July 2022 - NOFA release
 Propose holding two webinars during application period  Propose 45-day application period
 August 2022 - Application due date
 August/September 2022 - Application review
 September/October 2022 – Grant agreement preparation
ARPA Food Justice Grant
Review Panel
ARPA Food Justice Grant Review Panel
 2 City Staff
 3 Community Members
 Must sign conflict and confidentiality forms
 Must submit complete online application by Friday, June 24th

Community
Discussion
Discussion Questions for FJTF

TIMELINE
 Is the timeline reasonable? Would a 45-day period be feasible for applicants? Comments and suggestions.

Authorized Activities Categories
 Based on community needs, are we missing other categories?  Within the listed categories, are there any areas of higher priority? For instance, should we favor the provision of services and programming over capacity building and technical assistance? Payment Method
 Currently reimbursement basis is standard for ARPA grant agreements. However, we could allow partial advances for special circumstances. If so, what are the special circumstances?

NEXT STEPS
 Compile notes from today’s meeting to finalize the ARPA Food Justice Grant Program
 June 28th: City Council to Approve ARPA Food Justice Grant Program  July 27th: Next Food Justice Taskforce Meeting

Updates from Councilmember Mai Vang
Monday Walks w/Mai
Location: Pannell
Community Center
Date/Time: June 13, 20
& 27 from 9-10AM
Wood Park Opening
Location: 6755 Bodine
Circle
Date/Time: June 24th
from 11am-1pm
Free food and games!

Office of Innovation and
Economic Development
Denise Malvetti
Deputy Director
[email protected]
Ginger Weagraff
Development Project Manager
[email protected]
Food Systems Partners
in the Mayor's Office
Office of Mayor Darrell Steinberg
Andrew Kehoe
Communications Director
Nicole Cuellar
Senior Policy Advisor on sustainability,
infrastructure, workforce, and cannabis

THANK YOU & STAY CONNECTED
Point of Contacts:
• Andrew Kehoe at [email protected]
• Asia Lee at [email protected]
Visit: heartandhustle.org/food-justice
Office: 916-808-7008

RESOLUTION NO. 2022-

Adopted by the Sacramento City Council

June 28, 2022

City Council COVID-19 Response: ARPA Framework and Funding Priorities: Establish Food Security Initiatives Project

BACKGROUND

A. Along with other public agencies across the country, the City of Sacramento has, and continues to face extraordinary challenges as a result of the COVID-19 pandemic.

B. The American Rescue Plan Act (ARPA) was established in March 2021 to help in responding to the ongoing COVID-19 pandemic and public health emergency.

C. On September 14, 2021, the City Council provided guidance by adopting the City’s ARPA Framework and Funding Priorities and directed the City Manager, City Attorney, City Auditor, City Treasurer, and City Clerk to implement the adopted ARPA Framework.

D. 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 ARPA funding; established the ARPA Reinvestment Fund (Fund 1003); and allocated $112.2 of ARPA funds to provide government services and budget the resulting available resources in the ARPA Reinvestment Fund.

E. Among the priorities identified in the ARPA Framework was a $1.5 million investment in food security initiatives. Specifically, the ARPA Framework allocated $1 million to support the Food Justice Task Force and $500,000 to support local food bank providers.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. The ARPA Food Security Initiatives Project (I02612070) is established as a new Multi-Year Operating Project.

Section 2. The City Manager or the City Manager’s designee is authorized to transfer $1,500,000 from the available fund balance of the ARPA Reinvestment Fund (Fund 1003) to the expenditure budget of the ARPA Food Security Initiatives Project (I02612070).

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