City Council
Report
City Council Meeting: January 24, 2023
Agenda Item: 5.F
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Authorization to Accept the Farmers Market American Rescue Plan Market Match Grant
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Exemption pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to accept a grant awarded in the amount of $34,400 from the American Rescue Plan Act (ARPA) of 2021’s Market Match Program by subrecipient Sustainable Economic Enterprises of Los Angeles (SEE-LA) and to accept all subsequent grant renewals;
3. Authorize the City Manager to execute all necessary documents to accept the grant, grant renewals, and modifications; and
4. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report.
Summary
Market Match is California’s healthy food incentive program that matches customers’ CalFresh nutrition assistance benefits at farmers markets to help fund the purchase of fresh fruits and vegetables. Santa Monica Farmers Market has been awarded as a lower tiered recipient by subrecipient Sustainable Economic Enterprises of Los Angeles (SEE-LA), for the American Rescue Plan Act (ARPA) of 2021 funds allocated through the Los Angeles County Board of Supervisors for Los Angeles County Department of Public Health. This grant funding will expand the Market Match program, currently only at the Pico Farmers Market, to the Main Street Farmers Market, for a performance period of January 1, 2023, through December 31, 2023. Market Match expands the purchasing power of low income CalFresh shoppers at farmers markets by supporting 2 of 5
purchases dollar for dollar (up to $15) with Market Match incentive dollars that may be spent on fresh fruits and vegetables at the Farmers Market. The award will primarily fund the Market Match incentive dollars at the market ($30,000) with $4,400 earmarked for supplies and materials.
Discussion
In addition to the morbidity and mortality caused by the novel coronavirus, the COVID19 pandemic resulted in millions of Americans facing unemployment. Los Angeles County (LAC) was hit particularly hard, with the unemployment rate increasing to 19.4% in June 2020, compared to 14.9% in California and 11.1% nationally. The loss of jobs and associated income contributed to increased levels of food insecurity and deepened existing racial and economic inequities caused by a reduced access to healthy food.
While unemployment rates have since fallen to 4.9% in LAC, rapidly rising inflation is posing another affordability crisis for our most vulnerable residents.
The goal of the County’s ARPA funded Market Match Project (ARPA Market Match) is to increase the percentage of food and nutrition secure households across LAC. This project will work to ensure that low-income residents participating in federal nutrition incentive programs are food and nutrition secure and have increased access to nutrition incentives, thereby increasing purchasing power for healthy foods.
At an individual level, Market Match extends the purchasing power of nutrition assistance programs, such as the Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps, and known in California as CalFresh. The Market Match program provides on average $10 of matching funds for fruits and vegetables at participating farmers’ markets. This program is vital in supporting local farmers and businesses, promoting sustainable food systems and community food security. ARPA funding will help to expand Market Match and ensure that CalFresh and other federally funded nutrition assistance program participants can purchase more healthy foods with their benefits. Researchers estimate that the federally funded nutrition incentive dollars at California farm-direct outlets led to an economic impact multiplier of 3.0 in the local 3 of 5
economy. That means for every $1 of Market Match, an additional $3 is generated in the local economy.
The Santa Monica Farmers Market, Sunday Main Street, has been selected as a Market Match expansion site for the ARPA Market Match project. The Market Match program has operated out of the Pico Farmers Market since 2012 in partnership with Hunger Action Los Angeles (HALA). Staff has reporting infrastructure in place due to the existing partnership and will be able to complete additional monthly reporting to SEELA/LAC to track distribution and any costs related to materials.
The Main Street Farmers Market is an ideal site for the Market Match program as it is known as a family friendly market that is accessible to weekend shoppers. The addition of the Market Match program will incentivize more people to buy local in support our farmers by shopping at the market, thereby helping to attract new customers and support the retention of quality producers at the market. The Main Street Farmers Market has redeemed $15,000 of CalFresh dollars in 2022, and the Market Match program will add $30,000 of incentives to farmer sales in addition to any additional CalFresh sales. An additional $4,400 has been awarded through this program for the costs of materials for the scrip, promotion (including translation services) and mileage for meetings and outreach.
CalFresh benefits are issued through Electronic Benefit Transfer ( EBT) card. The use of CalFresh/EBT has increased drastically at the Santa Monica Farmers Market in recent years, demonstrating a clear need for food security support. In fiscal year 2021, total CalFresh redeemed was $65,635, and in 2022 that amount more than doubled for a total of $147,346 redeemed. Prior to 2020, Santa Monica Farmers Market’s typical CalFresh redemption was no more than $35,000 between all four markets. 4 of 5
Environmental Review
Acceptance of the grant is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) in that the grant would have no possibility of significant effects.
Financial Impacts and Budget Actions
Staff seeks authority to accept a grant from ARPA of 2021, ARPA Market Match Program by subrecipient SEE-LA in the amount of $34,400, to fund the expansion of the Market Match program to the Main Street Farmers Market. Staff also recommends the following budget changes for use of the grant funds.
FY 2022-23 Grant Budget Changes
Establish Revenue Budget Appropriate Funds
Account Number Amount Account Number Amount
20700014.405920 $34,400 20700014.556070 $34,400
Total $34,400 Total $34,400
Administration of this grant will be absorbed by the existing Farmers Market operations and will not pose any additional financial impact to the City. 5 of 5
Prepared By: Jaclyn Rivera-Krouse, Farmers Market Manager Approved Forwarded to Council