City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01309 8/9/2022 Consent Item 5.
City Council COVID-19 Response: ARPA Framework and Funding Priorities: North Sacramento Economic Recovery Plan Framework for ARPA Funds File ID: 2022-01309
Location: District 2
Recommendation: Adopt a Resolution: 1) approving the ARPA North Sacramento Economic Recovery Plan Framework; 2) establishing the ARPA North Sacramento Project (I02612090) as a new Multi-Year Operating Project; and 3) authorizing the City Manager or the City Manager’s designee to transfer $5,000,000 from the available fund balance of the ARPA Reinvestment Fund (Fund 1003) to the expenditure budget of the ARPA North Sacramento Project (I02612090).
Contact: Veronica Smith, District Representative, (916) 808-7169, [email protected]; City Council District 2
Presenter: None
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-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 adopted 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
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File ID: 2022-01309 8/9/2022 Consent Item 5.
· 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 $5 million investment to support the economic recovery of the North Sacramento commercial corridor areas and mitigate the impacts of COVID-19.
The COVID pandemic significantly magnified existing disparities in Sacramento, particularly for our marginalized and vulnerable communities and neighborhoods - which includes business owners and property owners. The COVID pandemic also accelerated decades long increases in commercial vacancies in District 2, propelled by online retail and shifts to online and home-based work in some industries. In addition to this challenge, District 2 already struggled with high storefront vacancies resulting from property warehousing, where building owners hold properties empty in the hope of eventually securing high-paying tenants, as well as vacant and blighted lots.
In the wake of COVID-19 closures, commercial vacancies nationwide are projected to rise, with significant implications for commercial corridors and business districts. Pervasive vacancies are linked with decreased property values, trash accumulation, pests, and fire risks. Along the North Sacramento commercial corridors, vacancies continue to reduce foot traffic and sales for remaining businesses, contributing to more closures. Furthermore, District 2 continues to see an increase in fires, trash, and illegal dumping which has been exacerbated by the pandemic.
The North Sacramento Economic Recovery Plan framework is designed to stimulate private investment, boost customer patronage, increase safety and security, and beautify the commercial corridor. Eligible project investments will support the improvement of underutilized commercial and mixed-use properties, while contributing to the quality of life for residents. The proposed framework is as follows:
ARPA North Sacramento
Economic Recovery Plan
Framework
Project Title Description
North Sacramento
Small Business
Assistance Program
The program aims to spur recovery along the Marysville/Del Paso commercial corridor by providing aid to both small business owners and commercial property owners. For small business owners, the program will pair technical assistance with implementation capital to help owners scale their businesses. For commercial property owners, the program will pair real estate development technical assistance with real estate development capital to help owners learn about the commercial real estate development process and bring their assets into productive use.
North Sacramento
Façade Improvement
Program
The program aims to spur economic recovery along the Marysville/Del Paso commercial corridor by providing one-time grants to small business owners and/or commercial property owners for exterior façade improvements. Example improvements include: · Paint Awnings/canopies · Window and/or door replacement · Landscaping features on older buildings · Architectural review · General outdoor cleaning activities The City also proposes to set aside a portion of the allocation to hire a consultant to launch, oversee, and manage the program including developing list of licensed and qualified vendors to complete facade improvements.
North Sacramento
Marketing and
Branding
The program aims to spur economic recovery along the Marysville/Del Paso commercial corridor by hiring a consultant to develop and execute a marketing program and brand strategy that will create better exposure, visibility, and publicity for the District 2 businesses - especially those impacted by COVID-19 and the unhoused community impacts (as a result of COVID-19) that will resonate with existing and prospective businesses, potential visitors, and industry leaders.
Food Insecurity,
Nutrition, Mental
Health and Related
Fund
This program will support catalytic community food insecurity projects, food kitchens, and clothing bank operations that serve City Council District 2. Funding will be made available as sub-grants to charitable organizations to provide goods and services or invest in infrastructure improvements that address their missions.
North Sacramento
Clean and Safe
Program
The program aims to spur economic recovery and improve public health as well as public safety by funding safety, security, and clean up stabilization investments along the Marysville/Del Paso commercial corridor.
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File ID: 2022-01309 8/9/2022 Consent Item 5.
ARPA North Sacramento
Economic Recovery Plan
Framework
Project Title Description
North Sacramento
Small Business
Assistance Program
The program aims to spur recovery along the Marysville/Del Paso commercial corridor by providing aid to both small business owners and commercial property owners. For small business owners, the program will pair technical assistance with implementation capital to help owners scale their businesses. For commercial property owners, the program will pair real estate development technical assistance with real estate development capital to help owners learn about the commercial real estate development process and bring their assets into productive use.
North Sacramento
Façade Improvement
Program
The program aims to spur economic recovery along the Marysville/Del Paso commercial corridor by providing one-time grants to small business owners and/or commercial property owners for exterior façade improvements. Example improvements include: · Paint Awnings/canopies · Window and/or door replacement · Landscaping features on older buildings · Architectural review · General outdoor cleaning activities The City also proposes to set aside a portion of the allocation to hire a consultant to launch, oversee, and manage the program including developing list of licensed and qualified vendors to complete facade improvements.
North Sacramento
Marketing and
Branding
The program aims to spur economic recovery along the Marysville/Del Paso commercial corridor by hiring a consultant to develop and execute a marketing program and brand strategy that will create better exposure, visibility, and publicity for the District 2 businesses - especially those impacted by COVID-19 and the unhoused community impacts (as a result of COVID-19) that will resonate with existing and prospective businesses, potential visitors, and industry leaders.
Food Insecurity,
Nutrition, Mental
Health and Related
Fund
This program will support catalytic community food insecurity projects, food kitchens, and clothing bank operations that serve City Council District 2. Funding will be made available as sub-grants to charitable organizations to provide goods and services or invest in infrastructure improvements that address their missions.
North Sacramento
Clean and Safe
Program
The program aims to spur economic recovery and improve public health as well as public safety by funding safety, security, and clean up stabilization investments along the Marysville/Del Paso commercial corridor.
Policy Considerations: The use of ARPA Reinvestment Funds to support the recovery of the North Sacramento commercial corridor is consistent with both the adopted ARPA Framework and Resolution No. 2021-0313.
Economic Impacts: The City will use the ARPA reinvestment funds to aid businesses and commercial property owners that have been impacted by COVID-19. These funds will support people, places, and actions that promote overall economic recovery and result in impacts immediately and well beyond the pandemic.
The North Sacramento framework will spur economic recovery along the commercial corridors while generating new investment within North Sacramento neighborhoods and creating greater economic opportunity.
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)). Even if any of the proposed actions are a project, they are not subject to CEQA because it can be seen with City of Sacramento Page 3 of 4
File ID: 2022-01309 8/9/2022 Consent Item 5.
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)).
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. 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. The Framework included a $5 million investment to support the economic recovery of the North Sacramento commercial corridors.
Financial Considerations: There is sufficient funding in the available fund balance of the ARPA Reinvestment Fund (Fund 1003) to support the recommended budgetary transfer.
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
Northgate Boulevard Economic Recovery Plan 5,000,000 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
#SacYouthWorks Summer 2022 Program 720,000 3
Small Business Priorities 7,380,850 1
American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 7/26/2022)
Attachment 2
Program Description Approved
Expenditure Category
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
Youth Pop-Up Program 1,300,000 3
$104,771,761
ARPA Balance $7,541,570
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 23,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 10,070,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,001,761
Total 104,771,761$
RESOLUTION NO. 2022-
Adopted by the Sacramento City Council
August 9, 2022
ARPA Framework and Funding Priorities: ARPA North Sacramento Economic Recovery Plan Framework
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 Sacramento 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 Framework included an allocation of $5 million to support the recovery of the North Sacramento commercial corridor.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND AND STAFF REPORT, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The ARPA North Sacramento Economic Recovery Plan Framework attached as Exhibit A is approved.
Section 2. The ARPA North Sacramento Project (I02612090) is established as a new Multi- Year Operating Project.
Section 3. The City Manager or the City Manager’s designee is authorized to transfer $5,000,000 from the available fund balance of the ARPA Reinvestment Fund (Fund 1003) to the expenditure budget of the ARPA North Sacramento Project (I02612090).
Section 4. Exhibit A is part of this resolution.
Table of Contents:
Exhibit A - ARPA North Sacramento Economic Recovery Plan Framework
Exhibit A
ARPA North Sacramento Economic Recovery Plan Framework
Project Title Description
North
Sacramento
Small
Business
Assistance
Program
The program aims to spur recovery along the Marysville/Del Paso commercial corridor by providing aid to both small business owners and commercial property owners. For small business owners, the program will pair technical assistance with implementation capital to help owners scale their businesses. For commercial property owners, the program will pair real estate development technical assistance with real estate development capital to help owners learn about the commercial real estate development process and bring their assets into productive use.
North
Sacramento
Façade
Improvement
Program
The program aims to spur economic recovery along the Marysville/Del Paso commercial corridor by providing one-time grants to small business owners and/or commercial property owners for exterior façade improvements. Example improvements include:
Paint
Signage
Exterior lighting
Awnings/canopies
Window and/or door replacement
Landscaping
Restoration of original façade features on older buildings Architectural review
General outdoor cleaning activities
The City also proposes to set aside a portion of the allocation to hire a consultant to launch, oversee, and manage the program including developing list of licensed and qualified vendors to complete facade improvements.
North
Sacramento
Marketing and
Branding
The program aims to spur economic recovery along the Marysville/Del Paso commercial corridor by hiring a consultant to develop and execute a marketing program and brand strategy that will create better exposure, visibility, and publicity for the District 2 businesses – especially those impacted by COVID-19 and the unhoused community impacts (as a result of COVID-19) that will resonate with existing and prospective businesses, potential visitors, and industry leaders.
Food
Insecurity,
Nutrition,
Mental Health
and Related
Fund
This program will support catalytic community food insecurity projects, food kitchens, and clothing bank operations that serve City Council District 2. Funding will be made available as sub-grants to charitable organizations to provide goods and services or invest in infrastructure improvements that address their missions.
North
Sacramento
Clean and
Safe Program
The program aims to spur economic recovery and improve public health as well as public safety by funding safety, security, and clean up stabilization investments along the Marysville/Del Paso commercial corridor.