City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00354 4/18/2023 Consent Item 10.
City Council COVID-19 Response: ARPA Framework and Funding Priorities: Amend ARPA Childcare Framework & Spending Plan and ARPA Reinvestment Fund Grant Agreement with Child Action, Inc. for a Childcare Provider Stipend
File ID: 2023-00354
Location: Citywide
Recommendation: Adopt a Resolution: 1) amending the ARPA Childcare Framework & Spending Plan and rescinding Section 1 of Resolution 2022-0268; and 2) authorizing the City Manager or the City Manager’s designee to execute a first amendment to the ARPA Reinvestment Fund Grant Agreement with Child Action, Inc. (City Contract #2022-0833) to adjust the number of Family Childcare Home (FCCH) providers and Childcare Centers that are eligible to participate and expand the eligible zip codes.
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: Not applicable
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Resolution
4- Exhibit A ARPA Childcare Framework & Spending Plan
5-Exhibit B First Amendment to ARPA-RF Grant Agreement with Child Action, Inc.
Additional 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 · Homeless and Housing
File ID: 2023-00354 4/18/2023 Consent Item 10.
· 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. As a result an ARPA Childcare Framework and Spending Plan was developed.
On August 16, 2022, the City Council adopted Resolution 2022-0268, which among other things, approved the ARPA Childcare Framework and Spending Plan, which is a guide for program implementation and expending of the $1.5 million allocated for childcare services. The ARPA Childcare Framework identifies goals to increase the number of childcare slots, grow the childcare workforce, support childcare providers and improve program quality. The Childcare Spending Plan is a three-pronged approach to distributing funds through a FCCH start-up stipend, an ECE Apprenticeship Program and a Provider Stipend. The amendment to the ARPA Childcare Framework and Spending Plan removes the restriction in the spending plan that 67 FCCH and 67 childcare centers can receive a childcare provider stipend.
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 targets 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. Resolution 2022-0268 also authorized the City Manager or 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 distribute these funds through the Childcare Provider Stipend Program (Program) (City Contract #2022-0833). Child Action Inc. is integral to Sacramento’s childcare network as it is 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
File ID: 2023-00354 4/18/2023 Consent Item 10.
operational expenses and supplies. The childcare stipend totaling $881,000 is being allocated in the following amounts: $5,000 for FCCHs, and $7,500 for center-based programs.
Child Action, Inc. launched the Program in November 2022 under a model that has so far provided 44 FCCHs and 6 childcare centers within the designated high priority zip codes. Based on the eligibility criteria Child Action Inc., has reviewed all applications, and determined they have exhausted all eligible providers in the Phase 1 and Phase 2 high priority zip codes and therefore staff proposes expanding the program to all zip codes within the city limits. Additionally, staff proposes removing the restriction that the Program serve 67 FCCH and 67 childcare centers because the overwhelming number of applications came from FCCH applicants.
Policy Considerations: Sacramento’s childcare industry continues to be impacted by the COVID-19 public health emergency. The use of ARPA reinvestment funds to support the sustainability of the childcare workforce and provide 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 helping sustain current providers.
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 devastated 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 the ARPA Childcare Framework & Spending Plan and ARPA Reinvestment Fund Grant Agreement with Child Action, Inc. in 2022 allowed for the City to support the childcare industry that has been devastated by COVID-19 and continues to struggle to recover from the pandemic. Now that the Program has been implemented and Child Action, Inc. and the City better understand the current industry needs, the proposed changes will allow for the Program to better address them.
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
File ID: 2023-00354 4/18/2023 Consent Item 10.
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.
On August 16, 2022, Council approved Resolution No. 2022-0268 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). There are no additional funds recommended in this report and sufficient funding is available in ARPA Youth and Workforce Training Project (I02612020).
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 Grant Matching Funds 2,000,000 4 Arts Journalism Grant Program 250,000 4
Business Compliance Unit (BCU) Night Team 1,717,058 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 5,033,277 2 COPS Hiring Program Grant Matching Funds 4,041,762 5
COVID-19 Homeless Response Program 2,900,000 2
Creative Businesses 1,750,000 4
Creative Economy Focused Youth Workforce Development 1,500,000 4 Cultural Arts Awards 250,000 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 3/28/2023)
Attachment 2
Program Description Approved
Expenditure Category
Public Records Staffing 3,671,790 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
$111,599,609
ARPA Balance $713,722
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 28,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 11,820,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,079,609
Total 111,599,609$
RESOLUTION NO. 2023-
Adopted by the Sacramento City Council
ARPA Framework and Funding Priorities: Amended ARPA Childcare Framework & Spending Plan and First Amendment to ARPA Reinvestment Fund Grant Agreement with Child Action, Inc.
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 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 10% smaller than before the pandemic and families continuing to struggle to find quality childcare. On August 16, 2022, the City Council adopted Resolution 2022- 0268, which among other things, approved the ARPA Childcare Framework and Spending Plan, which is a guide for program implementation and expending of the $1.5 million allocated for childcare services. The ARPA Childcare Framework identifies goals to increase the number of childcare slots, grow the childcare workforce, support childcare providers and improve program quality. The Childcare Spending Plan is a three-pronged approach to distributing funds through a FCCH start-up stipend, an ECE Apprenticeship program and a Provider Stipend. The proposed amendment to the ARPA Childcare Framework and Spending Plan removes the restriction in the spending plan that 67 FCCH and 67 childcare centers can receive a childcare provider stipend.
H. Resolution No. 2022-0268 also authorized the City Manager or City Manager’s designee to execute an ARPA Reinvestment Fund Grant with Child Action, Inc. in an amount not to exceed $881,000 to implement the Childcare Provider Stipend Program (City Contract #2022-0833). The stipend can be used toward hiring staff, providing sign-on and retention bonuses, and covering operational expenses and supplies. The childcare stipend totaling $881,000 is being allocated in the following amounts: $5,000 for family childcare homes, and $7,500 for center-based programs.
I. Child Action, Inc. launched the Child Care Provider Stipend Program in November 2022 under a model that has so far provided 44 FCCHs and 6 childcare centers within the designated high priority zip codes. Based on the eligibility criteria, Child Action Inc., has reviewed all applications, and determined they have exhausted all eligible providers in the Phase 1 and Phase 2 high priority zip codes. Therefore staff proposes expanding the program to all zip codes within city limits and removing the restriction in the ARPA Childcare Spending Plan that the program serve 67 FCCH and 67 childcare centers because the overwhelming number of applications came from FCCH applicants.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND AND STAFF REPORT, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. Section 1 of Resolution 2022-0268 is hereby rescinded.
Section 2. The ARPA Childcare Framework & Spending Plan attached as Exhibit A is a part of this resolution and is adopted.
Section 3. The City Manager or the City Manager’s designee is authorized to execute the first amendment to the ARPA Reinvestment Fund Grant Agreement with Child Action, Inc. (City Contract #2022-0833) to adjust the number of Family Childcare Home (FCCH) providers and Childcare Centers that are eligible to participate and expand the eligible zip codes. Exhibit B is part of this resolution.
Table of Contents:
Exhibit A- ARPA Childcare Framework & Spending Plan
Exhibit B – First Amendment to ARPA-RF Grant Agreement with Child Action, Inc.
Exhibit A
ARPA Childcare Framework & Spending Plan
ARPA Childcare 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.
ARPA Childcare Spending Plan
ECE Apprenticeship
Program
$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 waitlists for families to enroll. Targeting young adults 18 and up. Working with CalWORKs, Welfare to Work, Community
Based Organizations, ECE students and current providers.
Childcare
Provider Stipend
$881,000
$5,000 for Family
Childcare Homes
$7,500 for Childcare
Centers
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
$325,044
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 the licensing process. A stipend is used to
cover start- up costs (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