City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01050 8/16/2022 Consent Item 05.
City Council COVID-19 Response: ARPA Framework and Funding Priorities: Childcare Framework, American Rescue Plan Act Reinvestment Fund Grant Agreement with Child Action, Inc. for a Childcare Provider Stipend
File ID: 2022-01050
Location: Citywide
Recommendation: Adopt a Resolution: 1) approving the American Rescue Plan Act (ARPA) Childcare Framework & Spending Plan; 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 Youth and Workforce Training Project (I02612020); and 3) authorizing the City Manager or the City Manager’s designee to execute an ARPA Reinvestment Fund Grant Agreement with Child Action, Inc. in an amount not to exceed $881,000 to implement the Childcare Provider Stipend Program.
Contact: Janine Cooper, Child Care Project Manager, 916-808-5449, [email protected]; Denise Malvetti, Deputy Director, 916-808-7064, [email protected], City Manager’s Office of Innovation and Economic Development Presenter:
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Resolution
4-Exhibit A Childcare Framework & Spending Plan
5-Exhibit B ARPA-RF Grant Agreement with Child Action Inc.
Description/Analysis
Issue Detail: On August 24, 2021, the City Council held a workshop to discuss the Mayor’s proposed ARPA Framework and Funding Priorities. During the workshop City Council and stakeholders expressed overall interest in funding programs and projects in the following areas:
· Small Business and Commercial Corridor Revitalization City of Sacramento Page 1 of 5
File ID: 2022-01050 8/16/2022 Consent Item 05.
· 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 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 $1.5 million to expand childcare services.
A January 2022 Sacramento County Childcare Update by Child Action Inc. stated since the beginning of the pandemic, Sacramento County has seen the permanent closure of 235 Family Childcare Homes (FCCH) and 37 Child Care Centers. This equates to Sacramento County losing 4,308 childcare spaces (1,962 FCCH and 2,246 center spaces). In the City of Sacramento 156 childcare programs shuttered during the pandemic. The childcare workforce has also been significantly impacted. According to a CalMatters report, “California lost approximately 27,800 childcare workers between February and April of 2020 - or roughly a third of its workforce - according to data from the Bureau of Labor Statistics. From then through September of 2021, about 19,600 have come back.
Still, the workforce is about 10% smaller than it was pre-pandemic.” To address this childcare crisis, staff met extensively with Early Learning and Taskforce members including Child Action, Inc., First 5, Sacramento County Office of Education, SETA Head Start, Sacramento Women and Girls Advancement Coalition, local childcare providers, and Mayor Pro Tem Eric Guerra’s office and developed a three-pronged approach to increase accessibility to families, increase the childcare workforce, and support childcare providers. The childcare framework will help add slots for families and increase capacity to support Sacramentans getting back to work. The framework includes the following:
Childcare Provider Stipend
The childcare provider stipend was developed to help prevent further closures and support providers with recovery from the impacts from the COVID-19 pandemic. The provider stipend will target licensed childcare providers in underserved and high priority areas as defined by the Local Child Care and Development Planning Council in zip codes with a below average number of childcare facilities and those zip codes that have an area median income (AMI) below the city AMI. Staff recommends that the City Council authorize the City Manager to execute an ARPA Reinvestment Fund grant agreement with Child Action, Inc. in an amount not to exceed $881,000 to distribute these funds. Child Action Inc. is integral to Sacramento’s childcare network as they are under contract with the State to provide subsidies and childcare development services.
The stipend can be used toward hiring staff, providing sign-on and retention bonuses, and covering City of Sacramento Page 2 of 5
File ID: 2022-01050 8/16/2022 Consent Item 05.
operational expenses and supplies. To meet the enhanced health and safety guidelines imposed by local and federal agencies, the costs for licensed child-care centers have increased an average of 47% since 2019, according to a report by the Center for American Progress. Home-based family childcare is seeing costs increase an average of 70%. The childcare stipend totaling $881,000 will be allocated in the following amounts: $5,000 for family childcare homes, and $7,500 for center-based programs. These funds can assist up to 67 Family Childcare Homes and 67 Childcare Centers.
Licensed FCCH Startup Assistance
As part of the e proposed framework, the licensed FCCH startup stipend will supplement existing programs that support FCCH startups with the goal of s increasing the supply of FCCH to compensate for the numerous closures due to the COVID-19 pandemic. Child Action currently has a Memorandum of Understanding with the California Department of Social Services to recruit, retain and provide technical assistance and training to childcare providers in Sacramento County. The California Capital Women’s Business Center developed the Licensed to Care Program in 2021 to support individuals who want to become licensed family childcare providers. The Licensed to Care Program provides technical assistance and training including business counseling for providers. Both programs provide technical assistance to prepare individuals to open FCCH, but they do not provide startup funding. The Licensed FCCH assistance program would enhance current programs by adding funding to cover startup cost (which could include licensing fees, fingerprinting, background checks, immunization fees, CPR & First Aid training, health & safety supplies, and general learning materials) and help reduce barriers to becoming a licensed family childcare provider. By contracting with both agencies, the City will help cover the startup cost for approximately 43 FCCH providers. Initially targeting high priority and underserved communities. To implement the Licensed FCCH Startup Assistance Program, within the next 60 days, staff anticipates the City entering into grant agreements with Child Action, Inc. in the amount not to exceed $225,026 and California Capital Women’s Business Center in an amount not to exceed $100,000. These agreements are within the City Manager’s existing contracting authority.
Early Childhood Education (ECE) Apprenticeship Program
An additional part of the proposed Childcare Framework is an ECE Apprenticeship Program to address the childcare workforce shortage. The ECE Apprenticeship Program will help increase the number of childcare workers, help build childcare center capacity, move children off waitlists, and help improve program quality.
The City of Sacramento is working with Los Rios Community College District to subsidize courses and course materials and provide supportive services for apprentices. Apprentices will receive job placement at childcare centers in paid early learning and childcare positions throughout the city. The ECE Apprenticeship program will improve quality by providing apprentices ECE courses and on the job mentoring and training by experienced teachers. By adding staff, programs can move children off waitlist and build capacity. Staff plans to come before Council within 60 days to seek approval of a professional services agreement in an amount not to exceed $293,956 with Los Rios Community College District to fund two cohorts of 30 apprentices.
City of Sacramento Page 3 of 5
File ID: 2022-01050 8/16/2022 Consent Item 05.
Policy Considerations: Sacramento’s childcare industry continues to be impacted by the COVID-19 public health emergency. The use of ARPA funds to support with the sustainability of the childcare workforce and providing accessibility to families is consistent with City Council’s adopted ARPA Framework and Funding Priorities.
Economic Impacts: The City will use the ARPA reinvestment funds to support the Childcare Industry and provide direct assistance to providers who have been impacted by COVID-19. In addition, the ARPA reinvestment funds will strengthen the childcare industry by increasing the number of childcare workers, and number of available slots for families to support with getting Sacramentan’s back to work.
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 the proposed actions may have a significant effect on the environment. (CEQA Guidelines, §15061(b)(3).)
Sustainability: Not Applicable.
Commission/Committee Action: Not Applicable.
Rationale for Recommendation: On September 14, 2021, City Council adopted an ARPA Framework and Funding priorities that contained the $1.5 million allocation for childcare services.
The childcare industry has been devasted by the COVID-19 pandemic in Sacramento County the childcare workforce is down by 13.3% from pre-pandemic levels. Sacramento County has also seen approximately 250 childcare facilities close.
Approval of childcare framework and ARPA Grant Agreement with Child Action, Inc. will allow for the City to support the childcare industry that has been devastated by COVID-19 and continues to struggle to recovery from the pandemic. Child Action Inc. has a memorandum of understanding with the state of California to support childcare providers. Child Action, Inc. has access to the names and addresses of all licensed providers throughout the city of Sacramento. Los Rios Community College District has implemented several apprenticeships including an ECE Apprenticeship with SETA Head Start. Los Rios Community College District works cooperatively with the Department of Labor and/or the Division of Apprenticeship Standards in the development of their apprenticeship programs.
Financial Considerations: On September 14, 2021, Council approved Motion No. 2021-0257, which provided a framework committing $1.5 million for childcare services. On October 19, 2021, City City of Sacramento Page 4 of 5
File ID: 2022-01050 8/16/2022 Consent Item 05.
Council adopted Resolution No. 2021-0313 authorizing the City Manager or City Manager’s Designee to accept $112.2 million of American Rescue Plan Act (ARPA) funding from the federal government.
Staff recommends transferring $1.5 million from the available fund balance of the ARPA Reinvestment Fund (Fund 1003) to the ARPA Youth and Workforce Training Project (I02612020).
Sufficient funding is available in the available fund balance of the ARPA Reinvestment Fund (Fund 1003) to support the recommended transfer.
Staff is recommending that the City Council authorize the City Manager or his designee to execute:
an ARPA Reinvestment Fund Grant Agreement in an amount not to exceed $881,000 with Child Action Inc. to support childcare providers. Upon approval of the recommended transfer, sufficient funding will be available in the ARPA Youth and Workforce Training Project (I02612020) to execute these agreements.
Local Business Enterprise (LBE): Not Applicable.
City of Sacramento Page 5 of 5
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 $13,261,570
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 18,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 9,350,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,001,761
Total 99,051,761$
RESOLUTION NO. 2022-
Adopted by the Sacramento City Council
ARPA Framework and Funding Priorities: Childcare Framework, ARPA Reinvestment Fund Grant Agreement with Child Action, Inc. for a Childcare Provider Stipend Program
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 $1.5 million to expand childcare capacity.
G. The childcare industry had been negatively impacted by the COVID-19 pandemic resulting in job loss, site closures, and loss of childcare for families. The childcare industry continues to struggle to recover from these losses with the workforce 13% smaller than before the pandemic and families continuing to struggle to find quality childcare.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND AND STAFF REPORT, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The ARPA Childcare Framework & Spending Plan is approved. The ARPA Childcare Framework & Spending Plan is attached as Exhibit A and is part of this Resolution.
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 Youth and Workforce Training Project (I02612020).
Section 3. The City Manager or the City Manager’s designee is authorized to execute an ARPA Reinvestment Fund Grant Agreement with Child Action, Inc. in an amount not to exceed $881,000 to implement a Childcare Provider Stipend Program. The grant agreement is attached as Exhibit B and is part of this Resolution.
Table of Contents:
Exhibit A-Childcare Framework & Spending Plan
Exhibit B- ARPA Reinvestment Fund Grant Agreement with Child Action, Inc.
ARPA Child Framework
Goal #1 Increase Number of Childcare Slots- Provide stipend to help reduce barriers to becoming a licensed family childcare home provider.
Potentially increase number of childcare slots for infant and toddlers.
Goal #2 Grow Childcare Workforce- Develop pipeline for early learning and childcare jobs through ECE Apprenticeship Program.
Goal #3 Support Childcare Providers- Help prevent further childcare programs from shuttering. Stipend distributed to providers to support with sign- on bonuses, bonuses for current staff, and/or support with daily operating cost.
Goal #4 Improve Program Quality- Training for providers through Child Action, Inc., and California Capital Women’s Business Center, Apprentices enroll in Early Childhood Education courses while receiving on the job training and mentoring.
ECE
Apprenticeship
$293,956
60 Apprentices Partnering with Los Rios Community College District- Subsidize cost of courses, cover cost of materials and wrap around services (tutoring, counseling). Job placement in childcare centers, on the job training and mentoring. Open slots at childcare sites and help build capacity by opening waitlist for families to enroll. Targeting young adults 18 and up. Working with CalWORKs, Welfare to Work,
ARPA Childcare Spending Plan
Community Based Organizations, ECE students and current providers.
Childcare
Provider Stipend
$881,000
$5,000 for Family
Childcare Homes up
to 67 programs
$7,500 for Childcare
Centers up to 67 sites
134 total Childcare
Sites Supported
Child Action, Inc. will act as fiscal distributor.
One- time stipend to support providers and help prevent further closures. The funds can be used for sign-on
bonuses, bonuses for staff, support operating cost., etc. including, payroll, food, supplies and equipment,
insurance, mortgage, utilities. Priority given to
underserved and underinvested communities areas with
below median income and high priority zip codes.
Family Childcare
Home Start-up
Stipend
Total $325,000
40 New Providers
320 additional slots
Build capacity by incentivizing opening reopening family childcare home working with Child Action, Inc. &
California Capital (WBC) programs to enhance their
programs. This will help increase the number of childcare slots and providers.
Providers receive one on one training & technical support throughout licensing process. Stipend used to cover start- up cost (fingerprinting, background checks, learning
materials, application fee, health & safety supplies and equipment, technology, etc.). Target underserved and
underinvested areas with below median income, high
priority zip codes and BIPOC communities.
Total $1,500,000