City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01148 9/12/2023 Consent Item 20.
City Council COVID-19 Response: ARPA Framework and Funding Priorities: Approve Amended North Sacramento Economic Recovery Plan Framework for ARPA Funds File ID: 2023-01148
Location: District 2, Represented by Councilmember Loloee Recommendation: Adopt a Resolution: 1) amending the ARPA North Sacramento Economic Recovery Plan Framework; 2) authorizing the City Manager or the City Manager’s designee to negotiate and execute ARPA Reinvestment grant agreements, subject to the conditions set forth in this staff report, with Capital College & Career Academy for an amount not-to-exceed $150,000, Roberts Family Development Center for an amount not-to-exceed $150,000; People Working Together for an amount not-to-exceed $150,000, Humanity Center for an amount not-to-exceed $150,000, Green Tech for an amount not-to-exceed $50,000, The Pop-Up Shop for an amount not-to- exceed $50,000, and Sacramento Horseman’s Association for an amount not-to-exceed $50,000; and 3) authorizing the City Manager or the City Manager’s designee to execute an ARPA Reinvestment loan agreement with Sammy’s Restaurant for an amount not-to-exceed $200,000.
Contact: Veronica Smith, District Representative, (916) 808-7169, [email protected], City Council District 2
Presenter: None.
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Resolution
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 adopted framework included funding allocations in the following areas:
1. Small Business and Commercial Corridor Revitalization;
File ID: 2023-01148 9/12/2023 Consent Item 20.
2. Homeless and Housing;
3. Youth, Workforce Training and Gang Prevention;
4. Arts and the Creative Economy; and
5. Valuing City Employees and Addressing Organizational Needs.
On October 19, 2021, the City 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), 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 priorities identified in the ARPA Framework was a $5 million investment to support the economic recovery of the North Sacramento commercial corridor and mitigate the impacts of COVID-19.
On August 9, 2022, the City Council adopted Resolution No. 2022-0256 which formally established the ARPA North Sacramento Economic Recovery Plan Framework. Key components of the framework included:
1. North Sacramento Small Business Assistance Program;
2. North Sacramento Façade Improvement Program;
3. North Sacramento Marketing and Branding;
4. Food Insecurity, Nutrition, Mental Health, and Related Fund; and
5. North Sacramento Clean and Safe Program.
On March 15, 2023, the City released a round 1 solicitation for the North Sacramento Façade Improvement Program. The City received 50 applications and city staff are currently working with the 20 highest scoring applicants to refine their projects to prepare for Planning/Building approvals and to enter into a grant agreement with the City. After round 1 grant agreements are fully executed, staff plans to release a second solicitation in conjunction with the proposed Transformative Reinvestment Grants program.
Other initiatives underway include the planning of a small business summit and the creation of a North Sacramento marketing and branding campaign.
File ID: 2023-01148 9/12/2023 Consent Item 20.
After operationalizing the framework for one year, and receiving feedback from the community, the District 2 Council Office is proposing to amend the framework, as reflected in Exhibit A to the proposed resolution, to add a North Sacramento Transformative Reinvestment Grants component to better meet community needs. The Transformative Reinvestment Grants will provide aid to District 2 nonprofits and small businesses to promote economic recovery and growth. The grant program will be open to businesses and nonprofit organizations located in Council District 2 that have a vision for their future and are seeking financial support to make it happen. The program will prioritize funding projects and programs that: 1) create new jobs; 2) retain existing jobs; 3) expand existing business; and 4) expand existing programs and services. Staff plans to release a solicitation for the Transformative Reinvestment Grants program in conjunction with the round 2 solicitation for the façade grant program.
The District 2 Council Office is also proposing to change the Food Insecurity, Nutrition, Mental Health and Related Fund to the North Sacramento Community Impact Fund. This change will broaden the eligibility parameters to encompass nonprofit community-based organizations serving District 2 that were negatively impacted by the COVID-19 pandemic. Under this category, the District 2 Council Office proposes direct allocations to the following organizations to meet immediate community needs:
1. $150,000 to Capital College & Career Academy to provide the capital needed to build a facility on Arden Way, which once constructed, will address critical needs in the greater Sacramento region and provide students with the skills and certifications necessary to become change- makers in their community;
2. $150,000 to Roberts Family Development Center to fund supportive services for North Sacramento youth;
3. $150,000 to People Working Together to fund a workforce development apprentice training, job readiness, and job placement program for North Sacramento’s hard-to-employ youth and young adults;
4. $150,000 to Humanity Center to fund supportive services for North Sacramento Afghan youth;
5. $50,000 to Green Tech to support pop-up community programming, education, and employment efforts which will include mini fairs and markets at the Mobility Hub on Grand Avenue; and
6. $50,000 to Sacramento Horsemen’s Association to fund roof repair, installation, and city permitting fees for the Sacramento Equestrian Center’s clubhouse.
In addition to the direct allocations above, the District 2 Council Office proposes the following direct allocations as part of the Small Business Assistance Program:
1. $50,000 to The Pop-Up Shop to fund entrepreneurship, incubator, and job creation as well
File ID: 2023-01148 9/12/2023 Consent Item 20.
as retention activities; and
2. $200,000 in a low interest loan to the current owner of Sammy’s Restaurant to support the re-opening of Sammy’s Restaurant on Del Paso Boulevard.
Staff recommends that approval of the eight direct allocations above be conditioned upon the recipients’ compliance with the City’s grant award requirements related to the demonstration of fiscal and administrative responsibility, as well as applicable youth program policies, including but not limited to Criminal Background Check requirements. Grantees and all their employees, volunteers, and subcontractors who will have supervisory or disciplinary authority over minors or will have direct contact with minors, are required to be fingerprinted. Grantees shall require employees, volunteers and subcontractors providing services to submit to being fingerprinted and checked for certain types of criminal convictions before providing services. (See California Public Resources Code Section 5164 and California Education Code Section 10911.5.) Grantees will submit evidence of compliance with this requirement prior to rendering services and prior to receiving grant funding.
Policy Considerations: The proposed actions are consistent with both the adopted ARPA Framework and Resolution No. 2021-0313.
Economic Impacts: The proposed actions will aid the North Sacramento community with economic recovery and growth.
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. (Cal. Code Regs., tit. 14, §§15060(c)(3), 15378(b)(4)). Even if any of the proposed actions are a project, they are not subject to CEQA because it can be seen with certainty that there is no possibility that any of them may have a significant impact on the environment (Cal. Code Regs., tit. 14, §15061(b)(3)).
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: The District 2 Council Office recommends approval of the proposed actions to better address the North Sacramento community needs, streamline funding disbursement, and expedite implementation of the ARPA North Sacramento Economic Recovery Plan Framework.
File ID: 2023-01148 9/12/2023 Consent Item 20.
Financial Considerations: There is sufficient funding available (ARPA Reinvestment Fund, Fund 1003) in the ARPA North Sacramento Project (I02612090) to complete the recommended actions.
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 1,037,695 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 1,473,669 5
Center for Workers' Rights 550,000 3
Childcare Services 1,500,000 3
Chidlren and Youth Services Program 720,000 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 4,044,804 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
American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 8/29/2023)
Attachment 2
Program Description Approved
Expenditure Category
North Sacramento Code Enforcement and Outreach 450,000 1 North Sacramento Economic Recovery Plan 5,000,000 1
Public Records Staffing 3,319,727 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 7,391,711 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
Youth-Serving Organizational Resiliency Fund Grant Program 480,000 3 $111,994,404
ARPA Balance $819,678
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 28,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 12,300,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 19,994,404
Total 111,994,404$
RESOLUTION NO. 2023-
Adopted by the Sacramento City Council
September 12, 2023
ARPA Framework and Funding Priorities: Approve Amended ARPA North Sacramento Economic Recovery Plan Framework
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 Sacramento 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 Framework included an allocation of $5 million to support the recovery of the North Sacramento commercial corridor.
G. On August 9, 2022, City Council adopted Resolution No. 2022-0256 which formally established the ARPA North Sacramento Economic Recovery Plan Framework.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The Amended ARPA North Sacramento Economic Recovery Plan Framework attached as Exhibit A is approved.
Section 2. Exhibit A – ARPA North Sacramento Economic Recovery Plan Framework of Resolution No. 2022-0256 is hereby rescinded and replaced by Exhibit A – Amended ARPA North Sacramento Economic Recovery Plan Framework.
Section 3. The City Manager or the City Manager’s designee is authorized to negotiate and execute ARPA Reinvestment grant agreements with Capital College & Career Academy for an amount not-to-exceed $150,000, Roberts Family Development Center for an amount not-to-exceed $150,000; People Working Together for an amount not-to-exceed $150,000, Humanity Center for an amount not-to-exceed $150,000, Green Tech for an amount not-to-exceed $50,000, The Pop-Up Shop for an amount not-to-exceed $50,000, and Sacramento Horseman’s Association for an amount not-to-exceed $50,000. This authorization is conditioned upon the recipients’ compliance with the City’s grant award requirements related to the demonstration of fiscal and administrative responsibility.
Section 4. The City Manager or the City Manager’s designee is authorized to execute an ARPA Reinvestment loan agreement with the current owner of Sammy’s Restaurant for an amount not-to-exceed $200,000, conditioned upon compliance with the City’s grant award requirements related to the demonstration of fiscal and administrative responsibility.
Table of Contents:
Exhibit A – Amended ARPA North Sacramento Economic Recovery Plan Framework Exhibit A
ARPA North Sacramento Economic Recovery Plan Framework
Project Title Description
Planned
Budget
Allocation
North
Sacramento
Small
Business
Assistance
Program
The program aims to spur recovery for North
Sacramento businesses by providing aid to both
small business owners and commercial property
owners. For small business owners, the program
will pair technical assistance with implementation
capital to help owners scale their businesses. This
includes a direct allocation of $50,000 to The Pop-
Up Shop, a low-interest loan to Sammy’s
Restaurant, and $30,000 for a Small Business
Conference Series
$280,000
North
Sacramento
Façade
Improvement
Program
The program aims to spur economic recovery in
North Sacramento by providing one-time grants to
small business owners and/or commercial
property owners for exterior façade
improvements. Example improvements include:
Paint
Signage
Exterior lighting
Awnings/canopies
Window and/or door replacement
Landscaping
Restoration of original façade features on
older buildings
Architectural review
General outdoor cleaning activities
The City also proposes to set aside a portion of
the allocation to hire a consultant to launch,
oversee, and manage the program including
developing list of licensed and qualified vendors
to complete facade improvements.
$1,000,000
North
Sacramento
Marketing and
Branding
The program aims to spur economic recovery in
North Sacramento by hiring a consultant(s) to
develop and execute a marketing program and
brand strategy that will create better exposure,
visibility, and publicity for the District 2 businesses – especially those impacted by COVID-19 and the
unhoused community impacts (as a result of
$250,000
COVID-19) that will resonate with existing and
prospective businesses, potential visitors, and
industry leaders.
North
Sacramento
Community
Impact Fund
This program will support D2 serving, community
based organization’s transformational projects
and programs that are responding to the COVID-
19 pandemic recovery and addressing their
missions. This includes the following direct
allocations: $150,000 to Capital College & Carrer
Academy; $150,000 to Roberts Family
Development Center; $150,000 to People
Working Together; $150,000 to Humanity Center;
$50,000 to Green Tech; and $50,000 to the
Sacramento Horsemen’s Association.
$700,000
North
Sacramento
Clean and
Safe Program
The program aims to spur economic recovery and
improve public health as well as public safety by
funding safety, security, and clean up stabilization
investments in North Sacramento.
$50,000
Transformative
Reinvestment
Grants
The program will provide aid to nonprofit and
small business initiatives within this district to
promote recovery and growth.
The Transformative Growth Grants Program is
open to businesses and nonprofit organizations
located in Council District 2 that have a vision for
their future and are seeking financial support to
make it happen. The program will prioritize
funding projects and programs that: 1) Create
New Jobs, 2) Retain Existing Jobs, 3) Expand
Existing Business, and 4) Expand Existing
Programs and Services.
$2,720,000