Title
City Council COVID-19 Response: ARPA Framework and Funding Priorities: Approve Amended North Sacramento Economic Recovery Plan Framework for ARPA Funds
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FileID
File ID: 2024-01275
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Location
Location: District 2, Represented by Councilmember Thao
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Recommendation
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.
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Contact
Contact: James Hackett-Little, Director of Policy and Communications, (916) 808-7002, jhackettlittle@cityofsacramento.org, Office of Councilmember Thao
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Resolution
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Description/Analysis
IssueDetail
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;
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 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.
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PolicyConsiderations
Policy Considerations: The proposed actions are consistent with both the adopted ARPA Framework and Resolution No. 2021-0313.
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EconomicImpacts
Economic Impacts: The proposed actions will further promote economic recovery and growth for the North Sacramento community.
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EnvironmentalConsiderations
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)).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The District 2 Council Office recommends approval of the framework amendments to better address North Sacramento community needs, streamline funding disbursement, and expedite implementation of the ARPA North Sacramento Economic Recovery Plan.
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FinancialConsiderations
Financial Considerations: There is sufficient funding available (ARPA Reinvestment Fund, Fund 1003) in the ARPA North Sacramento Project (I02612090) to complete the recommended actions.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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