Title
Adoption of Resolution to Amend the Fiscal Year (FY) 2020-21 Budget in the Commercial Revitalization Fund to Provide $100,000 in Matching Funds for the Alameda County CARES Grant Program. (Community Development 227)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
In response to the economic impacts of the COVID-19 pandemic, the Alameda County Board of Supervisors recently assigned $3 million of CARES Act funding to a dollar-for-dollar local government matching fund for a small business grant program. This program is in addition to a $5 million grant program directly available to small businesses county-wide. Under both programs, eligible businesses can receive a one-time grant of up to $5,000.
Staff recommends providing $100,000 for the local government matching fund grants program. Matched with County funds, this could provide grants for up to 40 Alameda-based businesses.
BACKGROUND
The Alameda County Board of Supervisors on November 10, 2020 redirected $3 million CARES Act funds for a dollar-for-dollar local government matching fund for a small business grant program in response to the economic, health, and safety impacts of the COVID-19 pandemic. This program is in addition to a $5 million small business grant program directly available to small businesses county-wide. Under both programs, eligible businesses can receive a one-time grant of up to $5,000.
The East Bay EDA has been designated by the County to administer both grant programs. The grants are intended to help small businesses cover costs incurred between March 17, 2020 and December 30, 2020 due to the COVID public health emergency.
East Bay EDA is in the process of finalizing the guidelines for the matching funds program. It has not yet been determined how the $3 million will be allocated among the local jurisdictions.
DISCUSSION
On November 10, 2020, the Alameda County Board of Supervisors redirected funds for two small business grant programs to be administered by the East Bay EDA:
• $5 million in CARES Act funds for one-time grants of up to $5,000 to small businesses. Applications were due by November 30, 2020. Grants will be awarded based on a lottery system from a pool of county-wide applicants.
• $3 million in CARES Act funds for a dollar-for-dollar local government matching fund. The grants of up to $5,000 from the matching funds would be awarded exclusively to businesses within the local jurisdiction.
Cities must formally communicate to the county their intent to invest in the program. The City of Alameda (City) has been in close communication with East Bay EDA. The resolution accompanying this agenda item will serve as the City’s formal notice of intent to invest in the program.
Under both programs, the grants will need to be dispersed by December 30, 2020. The eligibility requirements for both grant programs are identical. The applicant must be:
• Businesses physically located in Alameda County
• Agree to follow State of California & Alameda County Public Health Department COVID-19 guidelines to maintain a safe workplace
• Employ between 1 and 25 employees (self-employed individuals and home-based businesses are also eligible)
• Hold a valid business license for the location
• Upload a business IRS Form W-9
• Negatively impacted by one of these measures:
o Temporary closure of any length due to COVID-19; and
o Layoff of one or more staff due to COVID-19
The grants would exclude all chain businesses not headquartered in Alameda County, financial institutions, banks, lenders, landlords of residential or commercial businesses, non-profit organizations, and publicly traded companies. Funds may be only used for unreimbursed costs incurred from March 17, 2020 to December 30, 2020 for the following items:
• Rent, lease, mortgage and utility payments for business facilities
• Payroll
• Operating expenses such as supplies, materials, insurance, etc.
• Personal protective equipment (PPE), sanitation or health and safety equipment
• Reimbursement for digital equipment and/or platforms
• Interior and exterior physical adaptations (e.g. partitions, signage, outdoor seating, etc.)
ALTERNATIVES
• Adopt a Resolution to amend the FY 2020-21 budget in the Commercial Revitalization Fund to provide $100,000 in matching funds for the Alameda County CARES Grant Program.
• Adopt a Resolution to amend the FY 2020-21 budget to provide $150,000 in matching funds for the Alameda County CARES Grant Program.
• Adopt a Resolution to amend the FY 2020-21 budget to provide a different dollar amount in matching funds for the Alameda Count CARES Grant Program. Note that the funding source for a dollar amount over $100,000 would have to be identified.
• Do not support the use of matching funds for the Alameda County CARES Grant Program.
FINANCIAL IMPACT
Staff is seeking appropriation of $100,000 from the Commercial Revitalization Fund (227) fund balance for the matching funds. The Commercial Revitalization Fund (227) has sufficient fund balance for this request.
|
Budget Request |
Revenue/ Expenditure |
Fund Number |
Fund Description |
Project Number |
Project Name |
Budget Amount |
|
New Appropriation Request |
Increase Expenditure Budget |
227 |
Commercial Revitalization |
N/A |
N/A |
$100,000 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Establishing the Matching Fund is consistent with the urgency ordinance declaring the local emergency. The Alameda Municipal Code Chapter 2-24.2 defines a local emergency as “the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within this jurisdiction . . . requiring the combined forces of other political subdivisions to combat.”
ENVIRONMENTAL REVIEW
This action is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15378 and 15060.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Amend the fiscal year (FY) 2020-21 budget in the Commercial Revitalization Fund to provide $100,000 in matching funds for the Alameda County CARES Grant Program.
CITY MANAGER RECOMMENDATION
The City Manager supports the recommendation to allocate $100,000 of matching funds for the Alameda County CARES Grant Program. A funding source for a $100,000 match is identified in this report. If the City Council would like to allocate additional funds, up to a total of $150,000, the City Manager could identify a funding source to fulfill the match.
Respectfully submitted,
Lois Butler, Interim Director, Community Development Department
By,
Eric Fonstein, Interim Economic Development Manager
Financial Impact section reviewed,
Annie To, Finance Director
cc: Eric Levitt, City Manager