City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01362 10/24/2023 Consent Item 13.
City Council COVID-19 Response: ARPA Framework and Funding Priorities: Arts and the Creative Economy Program-Approve Revised Approach for Creative Businesses File ID: 2023-01362
Location: Citywide
Recommendation: Adopt a Resolution approving the revised approach for funding creative businesses through the Arts and Creative Economy Program.
Contact: Jason Jong, Cultural and Creative Economy Manager, (916) 808-5105, [email protected], Megan Van Voorhis, Director, (916) 808-5979, [email protected], Convention & Cultural Services Presenter: None.
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Resolution
Description/Analysis
Issue Detail: On March 13, 2020, the City declared a local emergency in response to the spread of the COVID-19 pandemic. On April 21, 2020, the City received $89.6 million in Coronavirus Relief Funds (CRF) from passage of the federal government’s Coronavirus Aid, Relief and Economic Security (CARES) Act to assist with the City’s response to the pandemic. Among the areas the City prioritized was relief for Arts, the Creative Economy and Tourism with an allocation of $20 million in assistance.
To further assist government entities with the pandemic response and recovery, on March 11, 2021, the American Rescue Plan Act of 2021 (ARPA) was signed into law making $350 billion available through the State and Local Fiscal Recovery Funds (SLFRF) to assist states, tribal governments, and local governments. The City of Sacramento received $112.2 million through that legislation. On August 24, 2021, the City Council held a workshop to discuss the Mayor’s proposed ARPA
File ID: 2023-01362 10/24/2023 Consent Item 13.
Framework and Funding Priorities. During that workshop, City Council and stakeholders expressed interest in funding Arts and the Creative Economy, among several other areas identified. 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 March 1, 2022, City council adopted Resolution No. 2022-0064, that resulted in: 1) establishing the Arts and Creative Economy Program as a new Multi-Year Operating Project; 2) authorizing the City Manager or the City Manager’s designee to transfer $10,000,000 from the available fund balance of the American Rescue Plan Act (ARPA) Reinvestment Fund to the expenditure budget of the Arts and Creative Economy Program; and 3) approving the amended Arts and Creative Economy Framework.
The Arts and Creative Economy Framework included a $1.75 million allocation to support creative businesses through a partnership with a Community Development Finance Institution (CDFI). Since the time that the amended Arts and Creative Economy Framework was adopted, the Office of Arts & Culture has carried out two research studies that better inform the strategy for support of creative businesses as they recover from the pandemic and as the sector continues to evolve.
Revised Approach to Supporting Creative Businesses - $1.75 Million The revised approach for supporting creative businesses through ARPA Reinvestment Funds reflects the findings of the Sacramento Music Census as well as recent creative economy-focused research and programming. It splits the $1.75 million into two focus areas.
Experience Economy Focus Area ($1 million)
This allocation focuses on the implementation of regulatory changes and recommendations arising out of the Sacramento Music Census and Arts and Entertainment Regulatory Review. It also focuses on industry support and development. On the regulatory side, funds would be allocated to activities such as:
· Regulatory reform, including any necessary third-party support for ordinance, policy and process design, and permit application design/development. · Online permitting for entertainment-related permits.
· Permitting education and industry training videos as well as a corresponding communications campaign.
· Microsite for information and education relating to entertainment-related permitting and venue management/event best practices.
On the industry support and development side, grants would be made available to for-profit independent venues (e.g. music venues, art galleries and bookstores) who regularly support, present, and/or cultivate Sacramento-based talent or those businesses (e.g. restaurants/cafes) who would like to begin presenting live music under more streamlined regulatory programs. Funds would
File ID: 2023-01362 10/24/2023 Consent Item 13.
also support the creation of an online industry information hub as well as industry-specific training and education programs.
Creative Business Accelerator/Supports ($750,000)
The Office of Arts and Culture recognizes that there is considerable potential for growth at the intersection of creative expression, design, technology and engineering and diverse creative entrepreneurs in Sacramento are driving that growth with incredibly limited resources. This allocation would build off the previous investments of the Office of Arts and Culture in pre-accelerator programs for creative businesses with a focus on creative entrepreneurs from marginalized communities. It would support additional pre-accelerator and accelerator programs focused on specific industries identified as part of recent creative economy-focused research. It would also provide financial support and mentorship to program graduates.
Policy Considerations: The recommendations here are consistent with Goal 3 of the Creative Edge Cultural Plan, which is to build upon and expand Sacramento’s unique creative economy. Strategy
3.1.3 specifically identifies streamlining and improving regulatory requirements for artists and creative enterprises. Strategy 3.1.2 specifically identifies building the market for specific sub-sectors of the creative industries (such as music, film/media production, etc.). The recommendations here are also consistent with Goal 2 of the Creative Edge Cultural Plan, which is to advance cultural equity for all Sacramento’s diverse populations. Strategy 2.1.4 calls for ensuring equity is considered in capacity building programs. The recommendations are consistent with ARPA objectives of providing aid to impacted industries and supporting economic recovery.
Economic Impacts: Today’s creative industries encompass far more than arts and culture; they reside at the intersection of design, technology, engineering, and expression. They intersect innovation and social impact. And, perhaps most telling, creative sectors are undergoing exponential growth:
· In California, the creative economy ranked as the #1 sector in value added to the economy · By 2030, G20 Insights predicts the creative economy could account for 10% of global GDP · Deloitte believes the world will see up to 40% growth in creative sectors by 2030 · The creative economy employment rate for ages 15-29 is stronger than any other sector Environmental Considerations: The recommendation in this report is not a project under the California Environmental Quality Act (CEQA) because it involves 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, as contemplated by Section 15378(b)(4) of the CEQA Guidelines (Cal.
Code Regs., tit. 14, §15000 et seq.), and is, therefore, not subject to CEQA pursuant to Section 15060(c)(3) of the CEQA Guidelines.
Sustainability: Not applicable.
File ID: 2023-01362 10/24/2023 Consent Item 13.
Commission/Committee Action: None.
Rationale for Recommendation: This revised funding approach will strategically support the people, places, and actions that promote the continued recovery of the live entertainment experience, while also positioning Sacramento for future creative industries growth. It provides resources to address a challenging regulatory climate, while also supporting independent venues who are critical to ensuring opportunity for Sacramento-based musicians, authors, and artists. Moreover, a robust live music scene helps to support the overall economic recovery of the city, by bringing individuals out of their homes and into parks, retail corridors and entertainment districts. From a cultural equity perspective, regulatory reform and robust education are keys to ensuring wider participation within the creative economy. These investments lay the foundation for impacts far beyond the pandemic.
Financial Considerations: There is sufficient funding available in the Arts and Creative Economy Program (I17609000) to complete the recommended actions and the recommended revised approach does not change the overall allocation to the creative businesses category.
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 529,520 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 201,340 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 6,735,807 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 3,600,547 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 74,453 1
American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 10/10/2023)
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
October 24, 2023
ARPA Framework and Funding Priorities: Approve Revised Approach to ARPA Arts and the Creative Economy Program Framework for Funding Creative Businesses
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 $10 million to support recovery of the arts and creative economy sectors in Sacramento.
G. On October 19, 2021, City Council adopted Resolution No. 2021-0313 authorizing the City Manager or designee to accept $112.2 million of ARPA funding from the United States Treasury and establish the ARPA Reinvestment Fund (Fund 1003) in order to assist with the recovery and reopening of the local economy resulting from the impacts of COVID-19.
H. On March 1, 2022, City council adopted Resolution No. 2022-0064, that authorized: 1) establishing the Arts and Creative Economy Program as a new Multi-Year Operating Project; 2) authorizing the City Manager or the City Manager’s designee to transfer $10,000,000 from the available fund balance of the American Rescue Plan Act (ARPA) Reinvestment Fund to the expenditure budget of the Arts and Creative Economy Program; and 3) approving the amended Arts and Creative Economy Framework.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The revised approach for funding creative businesses through the Arts and Creative Economy Program as outlined in Exhibit A is hereby approved.
Section 2. The previous approach for funding creative businesses through the Arts and Creative Economy Program as referenced in Resolution No. 2022- 0064 is hereby rescinded and replaced by Exhibit A- Revised Approach for Funding Creative Businesses through ARPA Arts and Creative Economy Program.
Exhibit A
Revised Approach for Funding Creative Businesses through the Arts and Creative Economy Program
Creative Businesses – $1.75 Million
Experience Economy Focus Area ($1 million)
This allocation focuses on the implementation of regulatory changes and recommendations arising out of the Sacramento Music Census and Arts and Entertainment Regulatory Review. It also focuses on industry support and development.
On the regulatory side, funds would be allocated to activities such as:
Regulatory reform, including any necessary third-party support for ordinance, policy and process design, and permit application design/development. Online permitting for entertainment-related permits.
Permitting education and industry training videos as well as a corresponding communications campaign.
Microsite for information and education relating to entertainment-related permitting and venue management/event best practices.
On the industry support and development side, grants would be made available to for- profit independent venues (e.g. music venues, art galleries and bookstores) who regularly support, present, and/or cultivate Sacramento-based talent or those businesses (e.g. restaurants/cafes) who would like to begin presenting live music under more streamlined regulatory programs. Funds would also support the creation of an online industry information hub as well as industry-specific training and education programs.
Creative Business Accelerator/Supports ($750,000)
The Office of Arts and Culture recognizes that there is considerable potential for growth at the intersection of creative expression, design, technology and engineering and diverse creative entrepreneurs in Sacramento are driving that growth with incredibly limited resources. This allocation would build off the previous investments of the Office of Arts and Culture in pre-accelerator programs for creative businesses with a focus on creative entrepreneurs from marginalized communities. It would support additional pre- accelerator and accelerator programs focused on specific industries identified as part of recent creative economy-focused research. It would also provide financial support and mentorship to program graduates.