City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01301 7/19/2022 Consent Item 06.
Title: City Council COVID-19 Response: ARPA Framework and Funding Priorities: American Rescue Plan Grant Agreement with Sacramento Convention and Visitors Bureau (Visit Sacramento) to Support Tourism Recovery through Iconic Event Production [Published for 10-Day Review 07/06/2022]
File ID: 2022-01301
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute an American Rescue Plan Act Grant Agreement in an amount not-to-exceed $1,500,000 with Visit Sacramento to support tourism recovery through the production of iconic events.
Contact: Megan Van Voorhis, Cultural and Creative Economy Manager, (916) 808-5979, [email protected]; Jody Ulich, Director of Convention & Cultural Services, (916) 808-5105, [email protected]; Michael Jasso, Assistant City Manager, (916) 808-1380, [email protected]
Presenter: None
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-American Rescue Plan Grant Agreement with Sacramento Convention & Visitors Bureau (Visit Sacramento)
Description/Analysis
Issue Detail: On August 24, 2021, the City Council held a workshop to discuss the Mayor’s proposed American Rescue Plan Act of 2021 Framework and Funding Priorities (ARPA Framework). During the workshop City Council and stakeholders expressed overall interest in funding programs and projects in the following areas:
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File ID: 2022-01301 7/19/2022 Consent Item 06.
· Small Business and Commercial Corridor Revitalization · Homeless and Housing
· Youth, Workforce Training and Gang Prevention
· Arts and the Creative Economy
· Valuing City Employees and Addressing Organizational Needs.
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 Framework included an allocation of $10,000,000 to Arts and the Creative Economy. The allocation to Arts and the Creative Economy 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 industries, such as travel, tourism, and hospitality, as well as directing funding to other industries that can demonstrate disproportionate negative economic impacts caused by COVID-19.
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 the 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.
As part of Resolution No. 2021-0313, $10,000,000 was allocated to Arts, the Creative Economy, and Tourism. Several programs and proposed amounts were detailed in the adopted resolution for the Arts and Creative Economy Framework.
On March 1, 2022, City Council adopted Resolution No. 2022-0064, which: 1) established the Arts and Creative Economy Program (I17609000) as a new Multi-Year Operating Project; 2) authorized the City Manager or City Manager’s designee to transfer $10,000,00 from the available balance of the American Rescue Plan Act (ARPA) Reinvestment Fund (Fund 1003) to the expenditure budget of the Arts and Creative Economy Program (I17609000); and 3) approved an amended Arts and Creative Economy Framework. The March 1, 2022, staff report also provided that the Tourism Recovery through Iconic Event Production Grant Program, Visit Sacramento would receive a $1.5 million grant award.
One of the approved grant programs in the amended Arts and Creative Economy Framework was Tourism Recovery through Iconic Event Production. This grant to Visit Sacramento will support the production of iconic events that attract visitors (and their associated spending) to Sacramento.
Consistent with the Creative Edge plan’s iconic event production strategy, this effort will build upon and reinforce existing events and programs in the city. Moreover, it will carefully consider ways to incorporate and reflect Sacramento’s unique culture.
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File ID: 2022-01301 7/19/2022 Consent Item 06.
Under the grant, Visit Sacramento will be responsible for:
· Selection of the specific iconic event(s) to be sponsored or produced and executing subaward agreement(s) with each subaward recipient for the development, execution, and evaluation of the chosen event(s) in order to achieve favorable tourism-related impacts as evidenced by:
o The number of out-of-town attendees;
o The number of hotel room nights booked;
o The amount of transient occupancy and sales taxes generated; o Attendee spending on parking, restaurants, and retail; and o The number of local support service providers engaged (crews, rentals, security, etc.) as well as associated spending with those service providers. · Working with the sponsored entity(s) - in consultation with the City of Sacramento’s Office of Arts and Culture - to ensure each iconic event incorporates and reflects Sacramento’s unique identity and culture, as evidenced by:
o The number of local artists/musicians represented onstage, as vendors or in other capacities throughout the live experience as well as associated spending with or subsidies provided to those artists/musicians;
o The number of local breweries, wineries, and restaurants represented; o The engagement of the local community in the lead up and follow up to each iconic event through sponsored events or activities at local independent music venues, dance studios, etc.; and
o The number of partnerships between the sponsored entity(s) and local creative sector businesses.
· Securing the necessary evidence that supports each iconic event’s efficacy at achieving the identified outcomes, participating in regular meetings with OAC to provide updates on the progress of the grant, and preparing mid-year and annual reports on the overall impact of the investments.
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.
The use of ARPA funds to support tourism recovery through iconic events production is consistent with City Council’s adopted ARPA Framework and Funding Priorities for Arts and the Creative City of Sacramento Page 3 of 4
File ID: 2022-01301 7/19/2022 Consent Item 06.
Economy pursuant to Resolution No. 2021-0313 and which was amended by a resolution of City Council on March 1, 2022. This item was published for 10-day review on July 6, 2022, in compliance with the City Code.
Economic Impacts: Sacramento’s tourism and hospitality industries continue to be impacted by the COVID-19 public health emergency. Arts and entertainment events and activities are known drivers of economic benefit, fueling the local tax base (e.g. sales, transient occupancy taxes and parking revenues) through visitor attraction, spending with local establishments, and hotel stays. For example, one of Sacramento’s signature festivals, Aftershock, with attendance of approximately 150,000 over four days, produced a total economic impact of $24.7 million, generated $1.2 million in transient occupancy tax and $130,000 in sales tax revenue in 2021. The event supported nearly 6,900 jobs and generated $19 million in local attendee spending, $4.7 million in local organizer spending, and just over $850,000 in local vendor spending.
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 March 1, 2022, City Council adopted Resolution No. 2022- 0064, which amended the Arts and Creative Economy Framework. One of the amendments included development and implementation of the grant program for Tourism Recovery through Iconic Event Production and allocated $1,500,000 in grant funding to Visit Sacramento. The City will provide grant funding to Visit Sacramento to support iconic events production as the means of furthering hospitality and tourism recovery. The recommendation contained in this staff report implements the previous action adopted by Council.
Financial Considerations: Sufficient funding is available in the Arts and Creative Economy Program (I17609000) expenditure budget to execute this grant agreement.
Local Business Enterprise (LBE): Not applicable.
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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 3,869,400 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 Food Justice Task Force 1,000,000 3
Forensiclean Extended Services 1,000,000 2
Gang Prevention and Intervention 1,500,000 3
Homeless and Housing Commitment 8,530,664 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
Local Food Bank Provider Support 500,000 3
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 American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 6/28/2022)
Attachment 2
Program Description Approved
Expenditure Category
Towing Administration Fee Reform 200,000 1
Vaccine Outreach and Education 1,000,000 1
Workforce Training Programs 2,750,000 3
Youth Pop-Up Program 1,300,000 3
$99,051,761
ARPA Balance $13,261,570
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 18,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 9,350,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,001,761
Total 99,051,761$