City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00481 5/2/2023 Consent Item 13.
City Council COVID-19 Response: American Rescue Plan Act (ARPA) Framework and Funding Priorities: City Manager Authority to Amend ARPA and ARPA Reinvestment Fund Grant Agreements and Funding Allocations
File ID: 2023-00481
Location: Citywide
Recommendation: Adopt a Resolution: 1) authorizing the City Manager or City Manager’s designee to execute amendments to ARPA and ARPA Reinvestment Fund grant agreements consistent with the authority delegated to the City Manager in section 3.56.290 of the City Code and related policies; and 2) authorizing the City Manager to reallocate unexpended funding (including accrued interest) between ARPA projects in the ARPA Reinvestment Fund (Fund 1003) in alignment with the ARPA Framework and Funding Priorities approved by the City Council.
Contact: Leyne Milstein, Assistant City Manager, (916) 808-8491, [email protected]; Ash Roughani, Special Projects Manager, (916) 808-7751, [email protected], Office of the City Manager
Presenter: None
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Resolution
Additional Description/Analysis
Issue Detail: 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.
On October 19, 2021, City Council adopted Resolution No. 2021-0313, which authorized the City Manager or City Manager’s designee to accept $112.2 million of ARPA funding; establish the ARPA Reinvestment Fund (Fund 1003); and allocate $112.2 of ARPA funds to provide government services
File ID: 2023-00481 5/2/2023 Consent Item 13.
and budget the resulting available resources in the ARPA Reinvestment Fund to assist with the recovery and reopening resulting from the impacts of COVID-19.
As of April 2023, the City has approximately 100 ARPA and ARPA Reinvestment Fund grant agreements totaling more than $20 million with organizations to implement ARPA Framework projects. All grant agreements of $250,000 or more have been approved by the City Council.
However, under existing policy, the City Manager does not have the authority to amend these agreements without Council approval. City project managers have identified the need to amend such agreements to accommodate minor changes such as timeline and budget (with no net increase in the total grant amount), but such changes may only be effectuated by Council action. Therefore, staff recommends providing the City Manager with same authority to amend these grant agreements, consistent with his authority to amend contracts for supplies and services, as specified by Sacramento City Code section 3.56.290. Similarly, providing authority to reallocate unexpended funding in alignment with the ARPA Framework and Funding Priorities will ensure the City maximizes the impact of its ARPA investments. On October 27, 2020, Council approved Resolution 2020-0347 providing the same authority for the administration of the City’s $89 million in Coronavirus Relief Funds.
Policy Considerations: Under section 11.10 of the FY2022/23 Budget Resolution, the City Manager is authorized to execute and amend grant agreements under $250,000. Currently, the City Manager does not have the authority to amend grant agreements of $250,000 or more, regardless of the dollar amount of the amendment.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): The proposed motion is not a project requiring review under the California Environmental Quality Act, consistent with CEQA Guidelines section 15060(c)(3) and 15378(b)(5), because it relates to administrative activity of the city that will not result in direct or indirect physical changes in the environment, and CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
Sustainability: None.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Staff recommends providing the City Manager authority to amend ARPA and ARPA Reinvestment Fund grant agreements, consistent with the City Manager’s authority to amend contracts for supplies and services, as provided by City Code section 3.56.290. In some instances, ARPA and ARPA Reinvestment Fund grant agreements need to be amended to make minor changes to programming, eligibility, and budgets. Granting the City Manager authority to
File ID: 2023-00481 5/2/2023 Consent Item 13.
amend ARPA grant agreements consistent with the authority granted under City Code section
3.56.290 and related policies will result in administrative efficiencies in administering the ARPA grant agreements. Similarly, allowing the City Manager to reallocate unexpended funding will ensure the City maximizes its ARPA investments.
Financial Considerations: This authority does not impact the current fund balance of the ARPA Reinvestment Fund (Fund 1003).
Local Business Enterprise (LBE): Not applicable.
Attachment 2
ARPA Reinvestment Fund (Fund 1003) $112,814,082
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 5,688,280 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 3,600,000 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 131,997 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 Market Public Lighting 75,000 1
North Sacramento Code Enforcement and Outreach 450,000 1 American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 4/18/2023)
Attachment 2
Program Description Approved
Expenditure Category
North Sacramento Economic Recovery Plan 5,000,000 1
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 $1,214,473
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 28,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 11,820,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,079,609
Total 111,599,609$
RESOLUTION NO. 2023-
Adopted by the Sacramento City Council
May 2, 2023
City Council COVID-19 Response: American Rescue Plan Act (ARPA) Framework and Funding Priorities: City Manager Authority to Amend ARPA and ARPA Reinvestment Fund Grant Agreements and Funding Allocations
BACKGROUND
A. The American Rescue Plan Act (ARPA) was established in March 2021 to help in responding to the ongoing COVID-19 pandemic and public health emergency.
B. On September 14, 2021, City Council provided guidance and direction by adopting the City’s ARPA Framework and Funding Priorities.
C. On October 19, 2021, City Council adopted Resolution No. 2021-0313, which:
authorized the City Manager or City Manager’s designee to accept $112.2 million of ARPA funding; established the ARPA Reinvestment Fund (Fund 1003); and allocated $112.2 of ARPA funds to provide government services and budget the resulting available resources in the ARPA Reinvestment Fund.
D. As of April 2023, the City has executed approximately 100 ARPA and ARPA Reinvestment Fund grant agreements totaling more than $20 million with organizations to implement ARPA Framework projects.
E. Under existing policy, the City Manager does not have the authority to amend grant agreements approved by the City Council, including those amendments that do not increase the total grant amount or do not change the general scope of the original agreement.
F. In some instances, ARPA grant agreements need to be amended to make minor changes to programming, eligibility, and budgets. Granting the City Manager authority to amend ARPA grant agreements consistent with the authority granted under City Code section 3.56.290 and related policies will result in administrative efficiencies in administering the ARPA grant agreements.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or the City Manager’s designee is authorized to execute amendments to ARPA and ARPA Reinvestment Fund grant agreements consistent with the authority granted to the City Manager in section 3.56.290 of the City Code and related policies.
Section 2. The City Manager or the City Manager’s designee is authorized to reallocate unexpended funding (including accrued interest) between ARPA projects in the ARPA Reinvestment Fund (Fund 1003) in alignment with the ARPA Framework and Funding Priorities approved by the City Council.