City of Sacramento
City Council - 5PM Report
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File ID: 2022-01930 11/29/2022 Consent Item 06.
City Council COVID-19 Response: ARPA Framework and Funding Priorities: Grant Agreement with Sacramento Hispanic Chamber of Commerce Foundation for the Northgate Boulevard Business Recovery Program [Published for 10-Day Review 11/17/2022] File ID: 2022-01930
Location: District 3
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 $2,000,000 with the Sacramento Hispanic Chamber of Commerce Foundation for the Northgate Boulevard Business Recovery Program.
Contact: David Gonsalves, Senior Council Representative, (916) 808-7235, [email protected]; Jocelyn Navarro, Council Representative, (916) 808-5532, [email protected], City Council District 3 Office Presenter: None
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-ARPA Reinvestment Fund Grant Agreement with the Sacramento Hispanic Chamber of Commerce Foundation
Description/Analysis
Issue Detail: On September 14, 2021, the Sacramento City Council adopted a framework to serve as a spending plan for the City’s $112.2 million allocation of ARPA relief funding. Among the priorities identified in the framework was a $5 million allocation to support the economic recovery of the Northgate Boulevard commercial corridor.
On July 26, 2022, the Sacramento City Council adopted a Northgate Boulevard Economic Recovery Plan framework to serve as a spending plan for the $5 million allocation. Among the priorities identified were several allocations to support the recovery and growth of small businesses located
File ID: 2022-01930 11/29/2022 Consent Item 06.
along Northgate Boulevard.
To implement this small business work, staff recommends partnering with the Sacramento Hispanic Chamber of Commerce Foundation (SACHCCF) to create the Northgate Boulevard Business Recovery Program. Specific activities include:
· Organizing and Inclusive Outreach and Engagement
o Outreach and Case Management-hiring one Promotora to conduct outreach and establish rapport with Northgate Boulevard small businesses as well as facilitate referrals for assistance.
· Business Development Support
o Training and Classes-launching four cohorts of the Emprende business planning program, which is a 10-week course comprised of educational seminars meant to teach Northgate Boulevard small business owners about core business concepts and practices including market research, budgeting, digital marketing, and financial planning.
o Individualized Business Consulting-providing culturally competent individualized consulting to Northgate Boulevard small businesses based on their expressed need including facilitating referrals to specialized subject matter experts. o Commercial Lease Assistance-providing commercial lease assistance to Northgate Boulevard small businesses including conducting outreach to identify small business owners in need of commercial lease assistance, providing individualized commercial lease education, consultation, and tenant/landlord mediation services, as well as providing individualized commercial lease legal assistance. o Food-Based Assistance-offering individualized consulting to Northgate Boulevard food-based small businesses including permitting assistance, operations assistance, staffing assistance, access to capital assistance, and assistance activating spaces to create Al-Fresco dining.
o Northgate Business Accesso Grant Program-designing and implementing a grant program to provide direct financial assistance to Northgate Boulevard small business in the form of micro-grants. Eligible uses may include are but not limited to general business operations, payroll expenses, supplier payments, rent, lease or mortgage payments for the business property, investment in software or technology to maintain online operations, or the purchase of equipment to expand or modify operations.
File ID: 2022-01930 11/29/2022 Consent Item 06.
· Transformative Project and Programs
o Northgate Business Electrification Grant Program-designing and implementing a grant program to assist Northgate Boulevard small businesses complete electrification upgrades.
· Placemaking and Open Space Activations
o Plaza Activation Assistance-partnering with the property owner at 561 Peralta Avenue to activate the existing space and transform it into a food plaza.
To deliver these services, the SACHCCF will partner with the Sacramento Municipal Utilities District (SMUD) and the Gardenland Northgate Neighborhood Association (GNNA). SACHCCF will also likely identify other specialized partners prior to implementation in January 2023.
Policy Considerations: Small businesses continue to be impacted by the pandemic. The use of ARPA reinvestment funds to provide Northgate Boulevard small businesses with technical assistance and grant opportunities is consistent with the adopted ARPA framework.
The 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 million shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on November 17, 2022, in compliance with the City Code.
Economic Impacts: The program will accelerate the economic recovery of the Northgate Boulevard commercial district by providing small businesses with technical assistance and grant opportunities.
Environmental Considerations: 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).) Additionally, the Northgate Business Electrification Grant Program is also categorically exempt from the requirement to prepare environmental documents because it involves the minor alteration of interior or exterior electrical conveyances of existing private structures that will involve negligible or no expansion of use. (CEQA Guidelines, §15301(a).)
Sustainability: The efforts to electrify Northgate Boulevard businesses will advance climate resiliency goals. Additionally, the electrification grant program and partnership with the SMUD will
File ID: 2022-01930 11/29/2022 Consent Item 06.
help inform future programming including how to replicate successful components in other areas of the city.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Staff recommends approval of the recommendation because the pandemic has disproportionately impacted historically underserved areas of the City including the Northgate Boulevard commercial corridor. The proposed programming will provide much needed aid to small businesses within this district to promote recovery and growth.
Staff further recommends partnering with the SACHCCF because the SACHCCF possesses extensive experience providing culturally-relevant services in the Gardenland Northgate community.
As a trusted entity, the SACHCCF will rely on its already established rapport with the small-business community to begin service delivery immediately. The SACHCCF also has a successful track record of performing services on behalf of the City.
Financial Considerations: Resolution No. 2022-0238 established the ARPA Northgate Boulevard Project (I02612080) as a new Multi-Year Operating Project and appropriated $5 million for recovery efforts. Sufficient funding is available in the ARPA Northgate Boulevard Project to execute a $2,000,000 grant agreement with the SACHCCF.
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 189,139 1
Animal Services for the Homeless (ASHR) Response Team 753,230 2 ARPA Grant Liaison Consulting Services 530,490 5
Arts and Cultural Nonprofits 250,000 4
Arts and Cultural Nonprofits Grant Matching Funds 2,000,000 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
Childcare Services 1,500,000 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 1,568,236 2 Comprehensive Siting Plan - Meadowview Acres Tree Removal 224,999 5 Comprehensive Siting Plan - Property Acquisition 12,312,624 2 Continuation of Existing Homelessness Programming 6,283,277 2 COPS Hiring Program Grant Matching Funds 4,057,327 5
COVID-19 Homeless Response Program 1,650,000 2
Creative Businesses 1,750,000 4
Creative Economy Focused Youth Workforce Development 1,500,000 4 Digital Equity Response Program 250,000 3
Direct Investment Program 750,000 3
Downtown Core and Old Sacramento Revitalization 3,675,000 1 Food Justice Task Force 1,000,000 3
Forensiclean Extended Services 1,000,000 2
FY2022/23 Affordable Housing Project 11,210,003 2
Gang Prevention and Intervention 1,500,000 3
Grove Emergency Bridge Housing 92,500 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 1,325,000 1
Local Food Bank Provider Support 500,000 3
Northgate Boulevard Economic Recovery Plan 3,000,000 1
Northgate Boulevard Fence Repair Project 2,000,000 1
North Sacramento Code Enforcement and Outreach 450,000 1 North Sacramento Economic Recovery Plan 5,000,000 1
American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 11/15/2022)
Attachment 2
Program Description Approved
Expenditure Category
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 7,391,711 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
Workforce Training Programs 2,750,000 3
Youth Pop-Up Program 1,300,000 3
$111,521,761
ARPA Balance $791,570
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 28,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 11,820,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,001,761
Total 111,521,761$