City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01275 6/25/2024 Consent Item 13.
City Council COVID-19 Response: ARPA Framework and Funding Priorities: Approve Amended North Sacramento Economic Recovery Plan Framework for ARPA Funds File ID: 2024-01275
Location: District 2, Represented by Councilmember Thao 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 an ARPA Reinvestment grant agreement with Neighborhood Wellness Foundation for an amount not-to-exceed $100,000; 3) authorizing the City Manager or the City Manager’s designee to negotiate and execute an amendment to the ARPA Reinvestment grant agreement with Capital College & Career Academy to increase the not-to-exceed amount by $150,000 to a new not-to-exceed amount of $300,000; 4) authorizing the City Manager or the City Manager’s designee to negotiate and execute a forgivable loan with Sammy’s Restaurant for an amount not-to-exceed $75,000; and 5) authorizing the City Manager or the City Manager’s designee to reallocate savings within the ARPA North Sacramento Economic Recovery Plan Framework into the Transformative Reinvestment Grants category.
Contact: James Hackett-Little, Director of Policy and Communications, (916) 808-7002, [email protected], Office of Councilmember Thao 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;
2. Homeless and Housing;
File ID: 2024-01275 6/25/2024 Consent Item 13.
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. Original framework categories 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 September 12, 2023, the City Council adopted Resolution No. 2023-0292, which amended the framework by adding a “Transformative Reinvestment Grants” category and broadening the “Food Insecurity, Nutrition, Mental Health, and Related Fund” category to become the “North Sacramento Community Impact Fund” category.
On November 14, 2023, the City Council adopted Resolution No. 2023-0367, which amended the framework again by reprogramming a $200,000 “North Sacramento Small Business Assistance Program” appropriation previously allocated to Sammy’s Restaurant and reinvesting $125,000 into Sacramento Iceland and the remaining $75,000 into the “Transformative Reinvestment Grants” category.
After operationalizing the latest framework since November 2023, the District 2 Council Office is recommending five amendments, as reflected in Exhibit A of the attached resolution.
First, the District 2 Council Office is proposing to broaden the description of the “North Sacramento Marketing and Branding” category. This change will allow flexibility in supporting a wider range of marketing activities. The flexibility is especially pertinent because this year marks the 100th
File ID: 2024-01275 6/25/2024 Consent Item 13.
anniversary since the City of North Sacramento was incorporated and there are centennial celebration efforts underway.
Second, the District 2 Council Office is proposing to transfer $50,000 from the “North Sacramento Marketing and Branding” category to the “North Sacramento Clean and Safe Program” category. This change will enable the City to make a more impactful clean and safe investment by funding the Neighborhood Wellness Foundation to conduct homeless encampment outreach and cleanup activities along the North Sacramento Bike Trail.
Third, the District 2 Council Office is proposing to transfer $150,000 from the “Transformative Reinvestment Grants” category to the “North Sacramento Community Impact Fund” category. This change will provide an additional $150,000 to Capital College & Career Academy, a public charter high school focused on hands on learning, to fund critical education and workforce development programming.
Fourth, the District 2 Council Office is proposing to transfer $75,000 from the “Transformative Reinvestment Grants” category to the “North Sacramento Small Business Assistance” category. This change will partially reinstate a previously Council approved loan to Sammy’s Restaurant now that the business is reopening under new ownership.
Lastly, the District 2 Council Office is proposing to reallocate any unexpended funding from other framework categories to the “Transformative Reinvestment Grants” category. This change will support the City’s forthcoming investments in District 2 small businesses with the goal of further promoting economic recovery and growth for the Marysville-Del Paso Boulevard commercial corridor.
Policy Considerations: The proposed actions are consistent with both the adopted ARPA Framework and Resolution No. 2021-0313.
Economic Impacts: The proposed actions will further promote economic recovery and growth for the North Sacramento community.
Environmental Considerations: The actions are not a project that is subject to CEQA because they constitute an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines §15378(b)(5)).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The District 2 Council Office recommends approval of the framework amendments to better address North Sacramento community needs, streamline funding
File ID: 2024-01275 6/25/2024 Consent Item 13.
disbursement, and expedite implementation of the ARPA North Sacramento Economic Recovery Plan.
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) $113,782,879
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
Children 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 4,055,403 1 Food Justice Task Force 1,000,000 3
Forensiclean Extended Services 1,000,000 2
Forgivable Loan Program 125,000 1
FY2022/23 Affordable Housing Project 11,210,003 2
Gang Prevention and Intervention 1,500,000 3
Grants Management Technology System 180,000 5
Grove Emergency Bridge Housing 92,500 2
Illegal Dumping Support 131,997 2
Individual Artists and Creatives 2,750,000 4
K Street Lighting 332,755 1
Labor Negotiations 9,893,510 5
Lighting and Safety Enhancement 870,144 1
Local Food Bank Provider Support 500,000 3
Northgate Boulevard Economic Recovery Plan 3,000,000 1
American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 2/13/2024)
Attachment 2
Program Description Approved
Expenditure Category
Northgate Boulevard Fence Repair Project 2,000,000 1
North Market Public Lighting 74,453 1
North Sacramento Code Enforcement and Outreach 450,000 1 North Sacramento Economic Recovery Plan 4,875,000 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 7,678,106 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 $112,174,404
ARPA Balance $1,608,475
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 28,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 12,300,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,174,404
Total 112,174,404$
RESOLUTION NO. 2024-
Adopted by the Sacramento City Council
June 25, 2024
ARPA Framework and Funding Priorities: 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, the 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, the City Council adopted Resolution No. 2022-0256, which formally established the ARPA North Sacramento Economic Recovery Plan Framework. Original framework categories included:
a. North Sacramento Small Business Assistance Program;
b. North Sacramento Façade Improvement Program;
c. North Sacramento Marketing and Branding;
d. Food Insecurity, Nutrition, Mental Health, and Related Fund; and e. North Sacramento Clean and Safe Program.
H. On September 12, 2023, the City Council adopted Resolution No. 2023-0292, which amended the framework by adding a “Transformative Reinvestment Grants” category and broadening the “Food Insecurity, Nutrition, Mental Health, and Related Fund” category to become the “North Sacramento Community Impact Fund” category.
I. On November 14, 2023, the City Council adopted Resolution No. 2023-0367, which amended the framework again by reprogramming a $200,000 “North Sacramento Small Business Assistance Program” appropriation previously allocated to Sammy’s Restaurant and reinvesting $125,000 into Sacramento Iceland and the remaining $75,000 into the “Transformative Reinvestment Grants” category.
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 and replaces the ARPA North Sacramento Economic Recovery Plan Frameworks previously adopted.
Section 2. The City Manager or the City Manager’s designee is authorized to negotiate and execute an ARPA Reinvestment grant agreement with the Neighborhood Wellness Foundation for an amount not-to-exceed $100,000.
Section 3. The City Manager or the City Manager’s designee is authorized to negotiate and execute an amendment to the ARPA Reinvestment grant agreement with Capital College & Career Academy to increase the not-to-exceed amount by $150,000, to a new not-to-exceed total of $300,000.
Section 4. The City Manager or the City Manager’s designee is authorized to negotiate and execute a forgivable loan with Sammy’s Restaurant for an amount not-to-exceed $75,000.
Section 5. The City Manager or the City Manager’s designee is authorized to reallocate savings within the ARPA North Sacramento Economic Recovery Plan Framework into the Transformative Reinvestment Grants category.
Table of Contents:
Exhibit A – Amended ARPA North Sacramento Economic Recovery Plan Framework
Exhibit A
Amended 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 $125,000 low-interest
loan to Sacramento Iceland, $30,000 for a Small
Business Conference Series, and a $75,000 forgivable
loan to Sammy’s Restaurant.
$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
Restoration of original façade features on older
buildings
$1,000,000
North
Sacramento
Marketing and
Branding
The program aims to spur economic recovery in North
Sacramento by funding marketing activities that will
attract more visitors to District 2 and support existing District 2 businesses.
$200,000
North
Sacramento
Community
Impact Fund
This program will support District 2 serving, community- based organization’s transformational projects and
programs that are responding to the COVID19 pandemic
recovery and addressing their missions. This includes the following direct allocations: $300,000 to Capital College & Carrer Academy; $150,000 to Roberts Family
Development Center; $150,000 to People Working
Together; $150,000 to The Humanity Center; $50,000 to
$850,000
Green Tech; and $50,000 to the Sacramento Horsemen’s
Association.
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. This includes a direction allocation of $100,000 to the Neighborhood Wellness Foundation.
$100,000
Transformative
Reinvestment
Grants
The program will provide aid to nonprofit and small
business initiatives within this district to promote recovery and growth. The Transformative Reinvestment 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.
$2,570,000