Title:
Title
City Council COVID-19 Response: CARES Act Framework and Funding Priorities; Continuation of Food Security Programs
End
FileID
File ID: 2020-01034
Location
Location: Citywide
End
Recommendation:
Recommendation
1) Review, discuss, and take action regarding the Coronavirus Aid, Relief and Economic Security (CARES) Act Great Plates Delivered and Food Insecurity Program; and 2) adopt a Resolution authorizing the City Manager or the City Manager’s designee to a) transfer $450,000 from Economic Relief - Small Business Forgivable Loans (I02003000) to Great Plates Delivered (G02610300, Fund 2704), b) transfer $350,000 from Economic Relief - Small Business Forgivable Loans (I02003000) to Food Insecurity (G02610100), c) realign revenue and expenditure budgets for Great Plates Delivered (G02610300) as outlined in the Resolution, and d) execute a CARES Act Grant Agreement with the Sacramento Food Bank and Family Services in the amount of $500,000.
FileName
Contact: Denise Malvetti, Interim Economic Development Manager, (916) 808-7064; Melissa Anguiano, Deputy Director, (918) 808-5864; Michael Jasso, Assistant City Manager, (916) 808-1380; Office of Innovation and Economic Development, Office of the City Manager
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Coronavirus Relief Fund Program Schedule
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, including the funding of small business loans of $1.1 million to City businesses, procurement of emergency supplies for the homeless (estimated at $250,000), emergency meal programs, and lodging for essential City staff. On April 21, 2020, the City received $89.6 million from the Coronavirus Relief Fund (CRF), which was created by 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.
Great Plates Delivered Program: On April 24, 2020, Governor Newsom announced Great Plates Delivered program. The program is both an emergency feeding program and economic stimulus in that it: 1) provides meals to adults 65 and older and adults 60-64 who are at high-risk, as defined by the Centers for Disease Control, and who are unable to access meals while staying at home and are ineligible for other nutrition programs; and 2) supports local restaurants who have closed or are struggling to remain open due to COVID-19 mitigation tactics and other food provider/agricultural workers.
On May 14, 2020 the City launched the program with 30 Sacramento restaurants providing 750 Sacramento seniors with breakfast, lunch and dinner boxes. The program is currently serving just over 1,000 seniors and working with 40 local restaurants to deliver three meals per day, five days per week. To date, the program has provided 238,071 meals and invested over $5 million into Sacramento’s local economy. Transportation partners include Paratransit and Lyft. Additional funds are needed to continue the program through December 30, 2020 (should the program continue to be extended by FEMA). The CRF match represents 6.25% of the total budget, the balance of the budget is provided by FEMA and the State.
Sacramento Food Bank and Family Services (SFBFS) Food Security Program: With the COVID-19 pandemic persisting and Sacramento unemployment over 14%, Sacramento residents are unable to meet their basic household needs. SFBFS is a Feeding America Partner Distribution Organization that partners with local agencies, shelters and community distribution organizations to feed people experiencing food insecurity in Sacramento County. Comparing April to June 2019 to April to June 2020, SFBFS has seen a 42% increase in pounds of food distributed and an 85% increase in people served. This grant will enable SFBFS to purchase approximately 505,618 pounds of food, which equates to approximately 421,000 meals according to Feeding America standards, to distribute through partner agencies within the city.
Policy Considerations: The City has been impacted by the 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.
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.
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 federal CARES Act funding and establishing COVID programs and budgets will allow the City to provide economic relief to its residents and businesses that have been impacted by COVID-19. The continuation of Great Plates Delivered and the support of SFBFS provide much needed resources to support the basic needs of Sacramento residents during the COVID-19 pandemic.
Financial Considerations: On April 21, 2020, the City received $89.6 million from the Coronavirus Relief Funds (CRF) to address impacts related to the COVID-19 pandemic. This staff report recommends the following: 1) transferring $450,000 from Economic Relief - Small Business Forgivable Loans (I02003001) to Great Plates Delivered (G02610300, Fund 2704), 2) transferring $350,000 from Economic Relief - Small Business Forgivable Loans (I02003001) to Food Insecurity (G02610100), and 3) amend the budgets for the federal and state grants for Great Plates Delivered (G02610300) as outlined in the Resolution. The current CRF program schedule is included as Attachment 2.
Local Business Enterprise (LBE): Not applicable