Title:
Title
CARES Act Relief Fund for Creative Economy Recovery Program: Accept Additional Grant Funding for Arts, Tourism and Creative Economy
End
FileID
File ID: 2020-00916
Location
Location: Citywide
End
Recommendation:
Recommendation
Adopt a Resolution increasing the Creative Economy Recovery Program budget by $2,500,000 from the CARES Act Program (G02610100) in the Federal Cares Act Fund (Fund 2704) to support the arts, tourism, and creative economy.
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
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 20, 2020, the City received $89.6 million in Coronavirus Relief Funds (CRF) from passage of the federal government’s CARES Act.
• On May 26, 2020 Council committed $28 million in CRF to support immediate local economic relief services and programs for residents and businesses. Included in the $28 million was an allocation of $5 million for the Creative Economy Recovery Program
• On June 30,2020 Council approved an additional amount of $2.5 million making the total CRF fund allocated to the Creative Economy Recovery Program $7.5 million.
The purpose of this report is to include a resolution consistent with the City policy of requiring a resolution for all budgetary adjustments.
Policy Considerations: The City has been impacted by a global pandemic. Establishing grant programs to help the creative community using CARES Act funding is consistent with City Council action relative to state and federal grant awards.
Economic Impacts: CARES Act funds will provide financial and technical assistance directly to support the arts, tourism, and creative economy that have been devastated by the current 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 additional funds of $2.5M for the Creative Economy Recovery Programs will allow the City to continue to provide economic relief to its residents and businesses that have been impacted by COVID-19. The additional allocation is necessary since the applications for grant opportunities has shown a need for additional funds as the existing amount of allocated funds does not meet the current demand request.
Financial Considerations: On April 21, 2020 the City received $89.6 million in federal Coronavirus Relief Funds (CRF) to address impacts related to the COVID-19 pandemic. Funding of the initial allocation of $5 million was approved by Council on May 26 and the additional $2.5 million for the Arts, Creative Economy and Tourism was approved during the June 30, 2020 Council meeting. This report recommends adopting a resolution to budget the additional $2.5 million consistent with the City policy of requiring a resolution for all budgetary actions. The current CRF program schedule is included as Attachment 2.
Local Business Enterprise (LBE): None