City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01020 8/9/2022 Consent Item 6.
City Council COVID-19 Response: ARPA Framework and Funding Priorities: Grant Agreement with California Black Chamber of Commerce Foundation for the Marginalized Community and Small Business Coalition Program
File ID: 2022-01020
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute an ARPA Reinvestment Fund Grant Agreement in an amount not-to-exceed $500,000 with the California Black Chamber of Commerce Foundation for the Marginalized Community and Small Business Coalition Program.
Contact: Denise Malvetti, Deputy Director, (916) 808-7064, [email protected], Mikel Davila, Senior Development Project Manager, (916) 808-8506, [email protected], Ginger Weagraff, Development Project Manager, (916) 808-1222, [email protected]; City Manager’s Office of Innovation and Economic Development Presenter: None
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-ARPA Reinvestment Fund Grant Agreement with the California Black Chamber of Commerce Foundation
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 allocated funding in the following areas:
· Small Business and Commercial Corridor Revitalization; City of Sacramento Page 1 of 3
File ID: 2022-01020 8/9/2022 Consent Item 6.
· 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, 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 investments identified in the ARPA Framework was an $8.2 million appropriation for small business priorities. As the COVID-19 pandemic persists, the need to support Sacramento’s historically marginalized and underserved small businesses continues. Data suggests that the pandemic disproportionately impacted minority-owned businesses. According to a report released by the U.S. House of Representative’s Small Business Committee, small business ownership dropped by 22 percent from February 2020 to April 2020, but Black ownership dropped by 41 percent. The hardships caused by the pandemic coupled with existing systemic inequalities such as lack of access to capital and lack of business mentors are making it difficult for minority-owned businesses to economically recover from the impacts of the pandemic.
Given this need, staff recommends partnering with the California Black Chamber of Commerce (CBCC) Foundation to implement the Marginalized Community and Small Business Coalition (MCSBC) program. The MCSBC program will provide technical assistance to eligible small businesses from historically underserved and underrepresented subsections of the small business community and entrepreneurial training to eligible youth from low- to moderate-income households.
The technical assistance will aid with small business recovery and growth, while the entrepreneurial training will accelerate rehiring. Specific activities include:
· Assistance registering and applying for government contracting as well as procurement opportunities;
· Assistance obtaining state and federal certifications including but not limited to Small Business (SB) and Disabled Veteran Business Enterprises (DVBE);
· Assistance connecting with financial institutions;
· Assistance with creating and/or improving business plans; · Assistance with creating and/or improving marketing plans; · Assistance with business startup activities;
· Provide financial literacy and wealth building training; and · Provide entrepreneurship training for youth.
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File ID: 2022-01020 8/9/2022 Consent Item 6.
To deliver these services, the CBCC Foundation will partner with Green Tech, Neighborhood Innovations and the Black Small Business Association.
Policy Considerations: Sacramento’s small businesses continue to be impacted by the pandemic.
The use of ARPA funds to provide small business technical assistance is consistent with the adopted ARPA Framework.
Economic Impacts: By providing small businesses with technical assistance, the program will accelerate recovery from the pandemic.
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. (CEQA Guidelines, §§15060(c)(3), 15378(b)(4)). Further, it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment. (CEQA Guidelines, §15061(b)(3).)
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: Staff recommends approval of the proposed actions because the pandemic has disproportionately impacted many of our businesses and the CBCC Foundation plans to provide services to over 100 businesses and individuals, targeting African-Americans, minorities, and other historically disenfranchised groups. This approach will provide much needed aid to Sacramento small and micro businesses to assist with the recovery and growth needed to compete in a post pandemic economy.
Staff further recommends partnering with the CBCC Foundation to implement the MCSBC program because the CBCC Foundation possesses extensive experience providing culturally relevant technical assistance to small businesses. The CBCC Foundation also has a successful track record of performing services on behalf of the City.
Financial Considerations: Resolution No. 2021-0313 appropriated $8.2 million for small business priorities. Sufficient funding is available in the ARPA Small Business Support Project (I02612000) to execute a $500,000 agreement with the CBCC Foundation.
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 $7,541,570
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 23,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 10,070,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,001,761
Total 104,771,761$