Title:
Title
COVID-19 Response: CARES Act Framework and Funding Priorities; Creative Economy Recovery Program - Grant Funding for Visit Sacramento (Two-Thirds Vote Required)
End
FileID
File ID: 2020-00956
Location
Location: Citywide
End
Recommendation:
Recommendation
1) Pass a Motion waiving the Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) which mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action; 2) adopt a Resolution: a) approving the Creative Economy Recovery Program for Visit Sacramento; b) increasing the Creative Economy Recovery Program budget by $5,431,621 from the CARES Act Program (G02610100) in the Federal Cares Act Fund (2704); and c) authorizing the City Manager or City Manager’s designee to execute a Grant Agreement with Visit Sacramento for an amount not-to-exceed $5,431,621.
FileName
Contact: Mannylyn Timoteo, Administrative Analyst, (916) 808-3982; Jody Ulich, Director, (916) 808-5105, Convention and Cultural Services Department
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Coronavirus Relief Fund Programs
3-Resolution
4- Grant Agreement
Description/Analysis
Issue Detail: On March 13, 2020, the City declared a local emergency in response to the spread of the COVID-19 pandemic. Several actions were taken by the City to provide immediate economic relief to city businesses and residents. On April 21, 2020, the City received $89.6 million in Coronavirus Relief Funds (CRF) from passage of the CARES Act.
Framework and Funding Priorities: On May 12, 2020, Council participated in a workshop to discuss a CRF framework and funding priorities, and on May 26, 2020 adopted a general framework proposed by the Mayor for funding priorities. During the workshop, Council expressed overall interest in funding programs and projects that provide small business assistance, get people back to work, offer opportunities for youth enrichment, address homelessness and housing issues, and support families impacted by this pandemic. The deadline for expending CRF funds is December 30, 2020.
A working group of departments has been working with the City Attorney and Auditor’s offices to prepare CARES Act funding recommendations and review funding suggestions for eligibility and alignment with identified Council priority areas:
• Small Business Assistance: Financial, technical, and entrepreneurship assistance to small businesses, non-profits, and community-based organizations (CBOs).
• Workforce Training: Fund programs and partner with workforce development providers, CBOs, and educational partners at all levels to retrain and uptrain workers dislocated due to the pandemic.
• Youth Enrichment: Implement robust programs, curriculum, and service for youth, including providing the necessary transportation and technology to support these programs.
• Family Services: Funding to support additional services for Sacramento families, including the expansion and availability of childcare services, food access, and programs that address domestic violence exacerbated by the stay-at-home orders.
• Homeless Services & Rapid Re-Housing: Services to place unhoused individuals into permanent housing and implement homeless aversion programs.
• Arts, The Creative Economy & Tourism: Financial and technical assistance directly to support the arts, tourism, and creative economy that have been devastated by the current pandemic.
Additionally, Council expressed a commitment to equity and inclusion. Each program and project will be screened through an equity lens to ensure CARES spending benefits our entire community, particularly those communities most impacted.
Proposed Visit Sacramento Grant Agreement: Allocating funds to Visit Sacramento is necessary due to the public health emergency and is a permissible use of CRF. These expenditures are necessary to provide economic support to Visit Sacramento, which has suffered from business interruption and economic hardship caused by COVID-19.
Due to the interruption from COVID-19, Visit Sacramento projects an operating budget gap of approximately $5.5 million through December 2020. Visit Sacramento is essential to successfully opening the new SAFE Credit Union Convention Center on behalf of the City, the hotels, and Sacramento’s holistic tourism economy. Visit Sacramento had to lay off or furlough most of its staff and remaining employees were required to take a reduction in pay. This has resulted in a drastic reduction in being able to provide services to hotels, local businesses affiliated with the hospitality industry, employees working within this industry, and working with business visitors and tourists who rely on Visit Sacramento to provide assistance in booking hotels, securing convention center space, and obtaining information and resources about the Sacramento region. Providing economic relief will allow Visit Sacramento to continue to perform these vital services which are an important part of the City’s local economy.
Last year, convention and tourism business booked by Visit Sacramento generated nearly $430 million in economic impact in Sacramento and the direct support of more than 140,000 jobs. As an indispensable part of the City’s economy these businesses cannot recover without Visit Sacramento’s sustained support, services, and programming.
Policy Considerations: The City has been impacted by a global pandemic. Establishing programs and budgets that include federal CARES Act funding is consistent with City Council action relative to state and federal grant awards. The proposed action is responsive to providing economic assistance to Visit Sacramento. Providing an award of CRF funds to Visit Sacramento to mitigate the effects of the COVID-19 public health emergency as provided in the grant agreement is a necessary expenditure.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. The recommendation includes waiving this requirement.
Economic Impacts: CARES Act funds and other eligible federal and state grants will assist the City in providing economic relief to residents and business that have been impacted by COVID-19. Additionally, CARES Act spending will support and advance inclusive economic growth, improve the health of neighborhoods and support people, places, and actions that promote overall economic recovery and impacts immediately and well beyond this pandemic. Providing economic support to Visit Sacramento will enable it to continue to provide services and assist hotels, hospitality employees, visitors, and tourists with safe re-openings of these businesses and venues while ensuring public safety.
Environmental Considerations:
California Environmental Quality Act (CEQA); National Environmental Policy Act (NEPA): The proposed action is not a project under CEQA because it relates 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)). The proposed action involves activities that are exempt from NEPA under title 24, section 58.34, of the Code of Federal Regulations.
Sustainability: None
Commission/Committee Action: None
Rationale for Recommendation: Accepting the proposed framework will allow the City to provide economic relief to Visit Sacramento in order to continue to provide services to hotels, other hospitality related businesses, and business and leisure visitors. The economic relief provided will also allow Visit Sacramento to provide services and information about the steps taken to protect hospitality owners, employees, and vendors in order to assure them that necessary precautions are being taken for them to safely go back to work.
Financial Considerations: On April 21, 2020, the City received $89.6 million from the CRF to address impacts related to the COVID-19 pandemic. This report recommends that an additional $5,431,621 of CRF funding be approved as part of the Creative Economy Recovery Program to provide economic support to Visit Sacramento. Excluding the funding recommended in this report and other CRF reports included in this agenda, the City Council has approved a little over $68.7 million for programs and projects. The current CRF program schedule is included as Attachment 2.
Local Business Enterprise (LBE): None